Views on Sadbhav Engineering 3QFY2014 results - Angel Broking

Views of Mr. Viral Shah (Sr. Research Analyst - Infrastructure) on Sadbhav Engineering 3QFY2014 results :

"For 3QFY2014, Sadbhav Engineering (SEL) reported a good set of numbers which were above our estimates. SEL posted decent set of numbers on the revenue front; however owing to better-than-expected operational performance earnings were above our estimate. On the top-line front, SEL reported a revenue growth of 75.7% yoy to Rs. 621cr in 3QFY2014 against our estimate of Rs. 641cr. This was mainly on the back of pick up in execution in remaining under construction projects and lower base of last year. On the margin front, the company posted EBITDAM of 10.4% up by 104bp yoy and was higher than our estimate of 10.0%. Interest cost grew by 9.3% yoy to Rs. 22cr and was lower than our estimate by 21.0%. On the bottom-line front, company's PAT reported a growth of 596.4% yoy to Rs. 26cr in 3QFY2014 against our estimate of Rs. 19cr. This was mainly due to better-than-expected operational performance and lower base of last year. At CMP, the stock is trading at P/E and P/BV of 13.1x and 1.4 FY2015 earnings. We continue to maintain Buy rating on the stock."

Source : Equity Bulls

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