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Prabhudas Lilladher: Sadbhav Engineering Q2 Review - Rising Execution With Healthy Margins

Prabhudas Lilladher: Sadbhav Engineering Q2 Review - Rising Execution With Healthy Margins

A worker hammers steel bars into place at an elevated highway construction site. (Photographer: Qilai Shen/Bloomberg News)  
A worker hammers steel bars into place at an elevated highway construction site. (Photographer: Qilai Shen/Bloomberg News)  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

Sadbhav Engineering Ltd. posted a decent set of numbers with revenues in line with our estimates while margins remain healthy at 12.1%, beating our and street estimates.

Execution across project sites is picking up sharply with material and labour force availability both reaching pre-Covid-19 levels.

With three large projects moving to full-fledged execution (leading towards daily run-rate of Rs 90-100 million versus current Rs 70 million), labour force at pre-Covid-19 levels and strong bid pipeline, management guided revenues to be approximately Rs 22 billion in FY21E and Rs 35-36 billion in FY22E with Ebitdam expected be ~12%.

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Prabhudas Lilladher Sadbhav Engineering Q2FY21 Result Update.pdf

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