Views on Sadbhav Engineering Ltd 2QFY2016 Result: Angel Broking

Views of Mr. Santosh Yellapu (Sr. Research Analyst - Infrastructure, Angel Broking) on Sadbhav Engineering Ltd 2QFY2016 Results:

SEL reports robust numbers for 2QFY2016

"Sadbhav Engineering Ltd. (SEL) reported a strong set of numbers for 2QFY2016, on the back of (1) stronger execution, (2) operating margin expansion and (3) reduction in interest expenses. The company posted a strong 25.4% YoY increase in its top-line to INR 746cr, with in-house BOT projects witnessing strong execution. This coupled with benefits of lower aggregate prices, led to an 80bp YoY EBITDA margin expansion to 10.8%. The PAT for the quarter came in at INR 26cr (vs INR 10cr in 2QFY2015), which is a strong growth. On adjusting for an exceptional item of INR 12cr, SEL's Adj. PAT for the quarter stood at INR 38cr. The Adjusted PAT margin has come in at 5.1% for the quarter vs 1.7% in the corresponding period a year ago. The quarter's Adj. PAT numbers also benefitted from lower depreciation and interest expenses and higher other income. During the quarter, SEL reported order inflows of INR 1,548cr, taking the total order inflows for 1HFY2016 to INR 2,624cr. Accordingly, we estimate the company's order book to be at INR 9,249cr as of 2QFY2016-end (OB to LTM sales ratio is at 2.8x). We maintain our positive view on the stock."

Shares of SADBHAV ENGINEERING LTD. was last trading in BSE at Rs.319.45 as compared to the previous close of Rs. 320.85. The total number of shares traded during the day was 39668 in over 1493 trades.

The stock hit an intraday high of Rs. 329 and intraday low of 314.35. The net turnover during the day was Rs. 12821448.

Source : Equity Bulls

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