Shelter Infra Projects Ltd. share price target and research reports

Name: Latest research reports of Shelter Infra Projects Ltd. authored by HDFC Securities and published by - Trendlyne research reports.
Item: Shelter Infra Projects Ltd.
Rating: 5
Author: HDFC Securities

Latest analyst research reports with target prices and PDF download for SIPL, BSE:526839 Shelter Infra Projects Ltd.

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Shelter Infra Projects Ltd.

01 Jun 2019

12.71

-5.36%

Sadbhav Engineering (4QFY19): A torrid quarter. Maintain BUY

Buy: Shelter Infra Projects Ltd.

HDFC Securities

After a muted 1HFY19 (2% degrowth YoY), SEL had started to show signs of recovery in 3QFY19, but 4QFY19 execution was exceptionally weak. We believe the SIPL deal will culminate in a complete strategic shift at SEL, with more focus towards an asset light EPC play in addition to the availability of a ready platform for offering HAM projects in future. ~Rs 5.4bn (vs. 4.6bn QoQ) of SIPL loans could be returned back leading to a further debt reduction (Rs 14.9bn currently, +0.3bn QoQ) and free its hands for additional projects once NHAI bidding picks up (~Rs 60-80bn targeted in FY20E). We maintain BUY. Key risks (1) Delay in SIPL stake sale; (2) Slow order inflows; and (3) Further delay in appointed dates. We maintain BUY on SEL with a reduced SOTP of Rs 353/sh (vs Rs 382 earlier). We value SELs EPC business at 15x FY21E EPS and assign a 20% hold co discount to SIPL stakes market value. Owing to delay in Appointed Dates (AD) we have downgraded FY20/21E standalone EPS by 15.1/9.4%.

Shelter Infra Projects Ltd. is trading below all available SMAs

Is Shelter Infra Projects Ltd. worth buying?

9 Votes:

Buy 66.67%

Sell 33.33%