Company Update: Sadbhav Engineering

Company Update: Sadbhav Engineering
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First Published: Tue, Mar 03 2009. 10 34 AM IST
Updated: Tue, Mar 03 2009. 10 34 AM IST
Sadbhav Engineering (SEL) is a mid size infrastructure player diversified across verticals of Roads, Irrigation and Mining excavation related projects.
SEL has bagged an order in a JV with SREI - SREI SAHAJ Consortium’ in the ratio of 39:10 with the remaining 51% been its share of the order.
The project order is for ”Modernization and computerization of integrated border check posts at Twenty Two locations in the State of Maharashtra on Build Operate and Transfer (Toll) Basis and amounts to a total size of Rs1,571 crore.
The Concession Period of the project is twenty-four years and six months inclusive of construction period of eighteen months.
With the accretion of Rs801crore (SEL’s share of the order) the outstanding order book stands at Rs4,600 crore which is 5.1x its FY2008 revenues.
We maintain a BUY on the stock with a target price of Rs559.
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First Published: Tue, Mar 03 2009. 10 34 AM IST
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