The independent financial analyst theScreener just lowered the general evaluation of SADBHAV ENGINEERING (IN), active in the Heavy Construction industry. As regards its fundamental valuation, the title still shows 1 out of 4 possible stars. Its market behaviour, however, has slightly deteriorated and will be qualified as risky moving forward. theScreener considers that these new qualifications justify an overall rating downgrade to Slightly Negative. As of the analysis date August 20, 2021, the ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Q3FY20 result highlights Revenue declined sharply by 58% yoy to Rs4.4bn (est. of Rs10.6bn) in Q3FY20 due to cancellation of two HAM projects. Overall, revenues have declined by 27% yoy in 9mFY20. Management attributed tight liquidity situation leading to slower disbursal of loan as the main cause for slow execution during Q3FY20 (Q4 is likely to be better) EBITDA declined by 51% yoy to Rs548m in Q3FY20 (vs. Rs1.1bn in Q3FY19 and below our estimate of Rs1.3bn). EBITDA margin improved to 12.5%...
Two Directors at Sadbhav Engineering Limited bought 447,521 shares at between 80.880INR and 82.236INR. The significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's dire...
Q2FY20 result highlights Revenue declined by 18% yoy to Rs5.7bn (est. of Rs8.8bn) in Q2FY20 due to delay in execution on projects of worth Rs36bn (delay in appointed dates for four projects). Overall, revenues have declined by 12% yoy in H1FY20. EBITDA declined by 17% yoy to Rs696m in Q2FY20 (vs. Rs833m in Q2FY19 and below our estimate of Rs1bn. EBITDA margin improved to 12.3% (vs 12.1% in Q2FY19) led by increased execution on HAM projects. As a result, PAT in Q2FY20 declined by 33% yoy to R...
SADBHAV ENGG.: SIPL merger in favor of SADE’s shareholders; To issue one equity share for every three equity shares of SIPL (SADE IN, Mkt Cap USD0.3b, CMP INR140, TP INR225, 60% Upside, Buy) SADE-SIPL merger ratio in favor of former's shareholders: The Board of Directors of Sadbhav Engineering (SADE) has approved the merger of the company and its listed subsidiary Sadbhav Infrastructure Project Limited (SIPL). In consideration of the merger, SADE will issue one equity share for every three e...
Q1FY20 result highlights Sadbhav Engineering (SEL) reported a decline of 8% yoy in revenue in Q1FY20 to Rs8.1bn (est of Rs8.8bn) led by delay in appointed date for its portfolio of projects (worth Rs46bn) won in FY18. EBITDA declined by 2% yoy to Rs1.04bn in Q1FY20 (above our estimate of Rs1.0bn) aided by strong EBITDA margins of 12.5% (est 11.7%) an increase of 80 bps yoy. Other income (including interest income of Rs222m from SIPL) declined by 6%yoy to Rs269m in Q1FY20(below our estimate o...
Sadbhav Engg.: Focus on business is the only remedy; Upgrade to Buy (SADE IN, Mkt Cap USD0.3b, CMP INR132, TP INR195, 48% Upside, Upgrade to Buy) Sadbhav Engineering's (SADE) stock price has corrected by ~50% since the asset sale announcement as pledges have increased. In this note, we will briefly discuss on this topic along with some of the other concerns facing the company. Around 50% decline in stock price implies ~75% correction in EPC business valuation: Since the announcement o...
Event update Sadbhav Infra Projects Ltd (SIPL), a listed subsidiary of Sadbhav Engineering (SEL), has entered into a deal with INDINFRA INVIT to sell 8 road assets along with one road asset held by SEL at an enterprise value (EV) of Rs66bn. INDINFRA INVIT has been promoted by L&T Infrastructure Development Projects Ltd (IDPL). Details SIPL operates 15 road assets and 12 under construction projects. Of the 15, the company has decided to sell 8 road assets (7 BOT and one Toll); additionally, ...
SADBHAV ENGINEERING: Asset monetization to help deleverage balance sheet; Focus now shifts to improving execution (SADE IN, Mkt Cap USD0.6b, CMP INR248, TP INR275, 11% Upside, Neutral) SIPL sells nine operational road projects to IndInfravit at an EV of INR66.1b Sadbhav Infrastructure Project Limited (SIPL) has entered into a definitive agreement with Indinfravit for the sale of its entire equity holding in nine of its operational road projects at an enterprise value of INR66.1b. SIPL has ...
Q4FY19 result highlights Sadbhav Engineering (SEL) Sadbhav Engineering (SEL) reported a decline of 8% yoy in revenue in Q4FY19 to Rs10.2bn (est of Rs12.8bn) and moderate 9% yoy growth in FY19 led by delay in appointed date for its portfolio of projects won in FY18. EBITDA grew 2.1% yoy to Rs1.26bn/Rs4.3bn in Q4FY19 (below estimate of Rs1.54bn)/FY19. EBITDA margins were strong at 12.4% (est 12.0%) /12.1% in Q4FY19/FY19 increase of 80bp/30bp yoy Other income (including interest income of Rs17...
Sadbhav Engg.: Execution hurdles mar operational performance; Downgrade to Neutral (SADE IN, Mkt Cap USD0.6b, CMP INR253, TP INR275, 9% Upside, Downgrade to Neutral) Operational performance below expectation: Revenue declined 7.5% YoY to INR10.2b (our est. INR12.7b), while EBIDTA inched up 2% YoY to INR1.3b (our est. INR1.4b). Operating margin of 12.4% (+120bp YoY) was above our est. of 11.0%. Adj PAT declined 59% YoY to INR286m, below our est. of INR741m impacted by higher-than-estimated...
(SADE IN, Mkt Cap USD0.6b, CMP INR224, TP INR265, 18% Upside, Buy) We met the management of Sadbhav Engineering and discussed the company’s asset monetization plans and improvement in its order book. Also, the company’s working capital cycle has normalized. Key takeaways: Asset monetization process on track, expect completion by end-FY19: Sadbhav Infrastructure Project Limited (SIPL) is well on track to partially monetize its operational road portfolio. Out of 12 operational projects, it...
Q3FY19 result highlights Sadbhav Engineering (SEL) Sadbhav Engineering (SEL) reported broadly in-line quarterly earnings. Execution improved but increased tax rate led to 9%yoy decline in PAT to Rs563m (est: Rs587m). Revenue grew 10.3%yoy (+34%qoq) to Rs9.3bn (est: Rs9.8bn). EBITDA grew 4.9% yoy to Rs1.1bn (in-line). EBITDA margins were strong at 12% but declined 60bp yoy on a high base (est: 11.4%). Other income (including interest income of Rs177m from SIPL) grew 43.1%yoy to Rs304m and ...
Sadbhav Engg.: Performance hit by issues restricting in-hand project execution (SADE IN, Mkt Cap USD0.4b, CMP INR163, TP INR225, 38% Upside, Buy) Operating performance below expectations: Revenue declined 1% YoY (LTL growth of 10.3%) to INR9.3b (our estimate: INR10.5b). EBIDTA increased 5% YoY to INR1.1b (our estimate: INR1.2b). Operating margin of 12% (-60bp YoY) was above our estimate of 11.5%. PAT declined 9% YoY to INR563m, below our estimate of INR656m. The miss on most fronts can be...
Q2FY19 result highlights Sadbhav Engineering’s (SEL) earnings were below our estimate led by lower revenues. PAT grew 20.2%yoy to Rs383m (est: Rs456m). Revenue declined 0.4%yoy to Rs6.9bn (est: Rs8.7bn). EBITDA grew 5.8% yoy to Rs833m and was below estimate of Rs980m. EBITDA margin grew 70bp yoy to 12.3% (est: 11.3%) led by better revenue mix. Other income (including interest income of Rs160m from SIPL) grew 68.7%yoy to Rs226m and was ahead of estimate of Rs195m. Interest expense (gross)...
Sadbhav Engg.: A quarter characterized by weaker-than-expected execution (SADE IN, Mkt Cap USD0.5b, CMP INR221, TP INR275, 25% Upside, Buy) Operating performance below expectations: Revenue declined 0.4% YoY (LTL growth of 11.6%) to INR6.9b, below our estimate of INR7.6b. EBIDTA increased 6% YoY to INR833m, also below our estimate of INR880m. Operating margin of 12.1% (+70bp YoY) was above our estimate of 11.5%. PAT increased 14.3% YoY to INR383m, below our estimate of INR426m. Overall op...
Q1FY19 result highlights Sadbhav Engineering’s (SEL) earnings were ahead of estimate led by higher other income. PAT grew 14.3%yoy to Rs634m (est: Rs526m). Revenue declined 3.5%yoy to Rs9.1bn (est: Rs9.2bn). EBITDA remained flat yoy to Rs1.1bn (in line) and EBITDA margin grew 40bp yoy to 11.7% (est: 11.4%) led by better revenue mix. Other income (including interest income of Rs177m from SIPL) grew 76.3%yoy to Rs285m and was ahead of estimate of Rs175m. Higher other income was attributable...
Sadbhav Engg: Asset monetization plans to deleverage balance sheet; Expect execution CAGR of 26% over FY18-20 (SADE IN, Mkt Cap USD0.7b, CMP INR276, TP INR385, 39% Upside, Buy) Balance sheet improvement via monetization of assets: Sadbhav Infrastructure Project (SIPL) intends to monetize its operational asset portfolio of 12 projects, proceeds of which will be utilized to (a) reduce debt at SIPL standalone level, (b) provide growth funding for the upcoming hybrid-annuity model (HAM) proje...
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