Sharekhan's research report on Sadbhav Engineering
Sadbhav Engineering Limited (SEL) has offloaded nine assets to IndInfravit Trust at an EV of Rs. 6612 crore and equity value of Rs. 2550 crore valuing it at 1.7x P/B. The deal to de-consolidate net debt of Rs. 4060 crore in SIPL, Rs. 1900 crore cash inflow, 10% stake in IndInfravit trust, Rs. 4000 crore O&M contract and platform for future project divestment. The debt to more than halve in standalone SEL and SIPL leading to further capacity in bidding for upcoming BOT and HAM projects.
Outlook
We maintain our Buy rating on SEL with an unchanged price target of Rs. 285.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!