{"id":372106,"date":"2020-09-05T11:29:41","date_gmt":"2020-09-05T05:59:41","guid":{"rendered":"https:\/\/infralive.com\/web\/?p=372106"},"modified":"2020-09-05T11:29:41","modified_gmt":"2020-09-05T05:59:41","slug":"maintain-buy-on-sadbhav-engineering-with-tp-at-rs-67","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/maintain-buy-on-sadbhav-engineering-with-tp-at-rs-67\/","title":{"rendered":"Maintain \u2018buy\u2019 on Sadbhav Engineering with TP at Rs 67"},"content":{"rendered":"<p>Sadbhav Engineering (SEL) posted a contraction of 73% y-o-y in topline and Rs 266 million loss in Q1FY21 as Covid-19 derailed execution. Operations are now at ~80% of pre-Covid level and expected to normalise by Q3FY21. The lockdown and the pandemic dragged toll collection significantly during the quarter, but it has now recovered to ~95% of pre-Covid level. Incremental order wins, ramp-up in execution and reduction in leverage are key to stock performance, in our view. We introduce FY22E numbers (as the stock comes out of restriction) and maintain \u2018buy\u2019 with SOTP-based TP of Rs 67.<\/p>\n<p>Topline plunged 73% y-o-y with the health crisis playing spoilsport. With Ebitda margin declining ~400 bps y-o-y to 8.5%, the company reported a loss of Rs 266 million during the quarter. Labour\/raw material availability, which was ~20-40% during Q1FY21, has now reached 80% level.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sadbhav Engineering (SEL) posted a contraction of 73% y-o-y in topline and Rs 266 million loss in Q1FY21 as Covid-19 derailed execution. Operations are now at ~80% of pre-Covid level and expected to normalise by Q3FY21. The lockdown and the pandemic dragged toll collection significantly during the quarter, but it has now recovered to ~95% of pre-Covid level. Incremental order wins, ramp-up in execution and reduction in leverage are key to stock performance, in our view. We introduce FY22E numbers (as the stock comes out of restriction) and maintain \u2018buy\u2019 with SOTP-based TP of Rs 67. Topline plunged 73% y-o-y [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,197,138],"tags":[],"class_list":["post-372106","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-roads-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/372106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=372106"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/372106\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=372106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=372106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=372106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}