Sadbhav Engineering - Weak operations, though set to recover on most counts in FY2014E - Kotak

Sadbhav reported weak 4QFY13 results with 22% revenue decline, 200 bps margin contraction and PAT of Rs116 mn (down 75%). Recent operations were impacted by completion of several key BOT projects. We believe Sadbhav is set to improve on most counts (sales, margins, balance sheet) in FY2014E on start of construction of recently won BOT projects. Apart from the core construction business, the BOT value remains intact.

Retain BUY.

Source : Equity Bulls

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