Yes Securities maintains buy on Sadbhav Engineering, target price Rs 168

Yes Securities has maintained buy rating on Sadbhav Engineering in the long term with target price of Rs 168. Shares of Sadbhav Engineering closed 4.6% higher at Rs 122.5 on Tuesday while BSE Sensex closed 185.51 points up at 40,469.70.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 938.13 crore, down -24.23% from last quarter sales of Rs 1238.16 crore.The company has reported net profit after tax of Rs -39.89 crore in the latest quarter.


Investment Rationale

The brokerage expects the project execution to pick up in the next two quarters. Further, the debt is likely to decline with repayment of loans by Sadbhav Infrastructure Properties from the funds to be received from sale of build operate and transfer (BOT) projects. Also, the company expects receipt of appointed dates for two projects worth Rs 16 billion over next couple of months.