Sadbhav Engineering Ltd. share price target

Sadbhav's (SEL) Q3FY18 standalone revenue (up 8% YoY) was in line with our estimate. EBITDA margin increased 45 bps YoY to 11.3%, slightly above our/consensus estimates. PAT was almost flat at Rs 531 mn due to higher tax rate.

Sadbhav Engineering (SEL) is a leading infrastructure company with presence in road, mining and irrigation segments. Sadbhav Infrastructure Projects (SIPL), the 69% subsidiary of SEL, owns 19...

ICICI Securities Ltd | Retail Equity Research Sadbhav Engineering's (SEL) topline grew 8.4% YoY to | 935.1 crore and was marginally lower than our expectation of | 970.4 crore EBITDA margin expanded 50 bps YoY to 11.3% led by lower other expenses (2% as percentage of sales in Q3FY18 vs. 4.7% in Q3FY17). It was largely in line with our estimate of 11.4% Net profit grew robustly by 17.9% YoY to | 61.8 crore (our estimate: | 62.2 crore) mainly on account of topline growth and higher other...

Transport segment(85% of revenue) grew at 15% YoY, supported by growth in BoT segment revenue (in-house HAM projects; +505% YoY to INR2.5b). EPC revenue within the transport segment declined 16.5%, as third-party order book available for execution declined on a YoY basis. Irrigation segment (6% of revenue) declined 26% YoY on account of lower order backlog available for execution, seasonal factors, and multiple projects reaching completion.Mining sector declined 16% YoY to INR840m.

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Sadbhav Engineering (SEL) is a leading infrastructure company with presence in road, mining and irrigation segments. Also, its subsidiary, Sadbhav Infrastructure Projects (SIPL), has 19 BOT...

We recently met management of Sadbhav Engineering (SADE) at our Midcap Conference'. SADE sees robust business opportunity coming up in the road sector post the Bharatmala project announcement the company expects annual awarding from the NHAI to be ~INR800b in FY18 versus INR600b in the previous year. The company has maintained its standalone revenue guidance of INR38b/INR45b for FY18/FY19, and expects the operating margin to be in the range of 11-12%. Order inflow is expected to be ~INR70b for FY18....

Sadbhav's (SEL) Q2FY18 standalone revenue (up 13% YoY) was below consensus/our estimates due to decline in irrigation revenue. EBITDA margin increased by 75 bps YoY at 11.4% driven by better phase of execution in road EPC projects.

ICICI Securities Ltd | Retail Equity Research Sadbhav Engineering's (SEL) topline grew 12.6% YoY to | 693.1 crore (our expectation: | 685.0 crore) EBITDA margins expanded 80 bps YoY to 11.4% led by lower other expenses (4.0% as a percentage of sales in Q2FY18 vs. 5.1% in Q2FY17). It was above our estimate of 11.0% Net profit grew 80.8% YoY to | 33.5 crore on account of strong topline growth and EBITDA margin expansion. PAT was above our...

Slow growth in last two years was primarily due to stuck projects in irrigation and payment issues in mining; the issues are now nearing resolution. SEL expects FY18 revenue to grow 14-17% YoY to ~Rs 38-39 bn with Rs 13-15 bn from 7 HAM projects.