RESULTS REVIEW 3QFY17 16 FEB 2017

Sadbhav Engineering
BUY
INDUSTRY INFRASTRUCTURE Execution-driven growth
CMP (as on 15 Feb 2017) Rs 275 Sadbhav Eng (SEL) reported strong 3QFY17 revenue Highlights of the Quarter
growth (14.8% YoY), leading to 18.5% APAT beat.
Target Price Rs 327 Going forward, four HAM projects are expected to Strong execution led by roads segment: SELs 3QFY17
contribute Rs 2bn+ incremental revenue in 4QFY17E, financial performance was lead by 23% YoY growth in
Nifty 8,725
leading to a strong performance. SELs net debt has the Transportation segment, whilst irrigation declined
Sensex 28,156 26%. With the resolution of service tax issues, the
increased to Rs 13.6bn (+Rs 2.3bn QoQ), as it paid a
KEY STOCK DATA mining segment is expected to pick up in FY18E.
Rs 1.1bn mobilisation advance to NHAI and
Bloomberg SADE IN
supported SIPL with Rs 700mn loans. Debtors Balance sheet deterioration, temporary: SELs net
No. of Shares (mn) 172 continue to remain at Rs 14.5bn vs guidance of debt increased by Rs 2.3bn QoQ, as it repaid Rs 1.1bn
MCap (Rs bn) / ($ mn) 47/706 coming down to Rs 10bn by FY17E end. of interest-bearing NHAI advance and supported SIPL
6m avg traded value (Rs mn) 32 with a credit line of Rs 700mn Net debt may inch up
Going ahead, SEL expects to win new orders worth
STOCK PERFORMANCE (%) Rs 20-25bn in 4QFY17E, as ~Rs 400bn of bids for further to Rs 15bn, to retire balance NHAI advances of
52 Week high / low Rs 309/197 roads would get finalised by Mar-17E. The balance Rs 2bn, implying that a debt reduction will occur once
3M 6M 12M sheet remains stable, with net debt at Rs 0.85x vs Rs 3.1bn of HAM advances are received in 1QFY18E.
Absolute (%) (1.5) (1.9) 13.1 0.7x during 2QFY17. WC cycle recovery from 1QFY18E: Speedier execution
Relative (%) (8.5) (1.9) (6.4) SEL has maintained its FY17E revenue guidance of Rs has resulted in higher debtors, as NHAI payment have
SHAREHOLDING PATTERN (%) 35-36bn for FY17E, and Rs 38bn+ for FY18E. We roll become milestone based. SEL now expects debtors to
Promoters 46.76 over our estimates to Mar-19E and maintain BUY be maintained at current levels of Rs 14.5bn vs earlier
FIs & Local MFs 27.01 with TP of Rs 327/sh. guidance of sub Rs 10bn by FY17E end.
FPIs 16.88
Financial Summary (Standalone)
Public & Others 9.35
Year Ending March (Rs mn) 3QFY17 3QFY16 YoY (%) 2QFY17 QoQ (%) FY16 FY17E FY18E FY19E
Source : BSE
Net Sales 8,648 7,531 14.8 6,156 40.5 31,863 32,847 39,239 46,174
EBITDA 938 739 27.0 654 43.5 3,254 3,505 4,227 5,079
APAT 416 286 45.8 185 124.8 1,350 1,360 1,904 2,506
Diluted EPS (Rs) 2.4 1.7 45.8 1.1 124.8 7.9 7.9 11.1 14.6
P/E (x) 35.0 34.7 24.8 18.8
Parikshit D Kandpal EV / EBITDA (x) 18.1 16.1 13.0 10.5
parikshitd.kandpal@hdfcsec.com RoE (%) 9.2 8.4 10.7 12.5
+91-22-6171-7317 Source: Company, HDFC sec Inst Research
HDFC securities Institutional Research is also available on Bloomberg HSLB <GO>& Thomson Reuters
 SADBHAV ENGINEERING : RESULTS REVIEW 3QFY17

Standalone Quarterly Financial

SEL delivered strong YoY Particulars (Rs mn) 3QFY17 3QFY16 YoY (%) 2QFY17 QoQ (%) 9MFY17 9MFY16 YoY (%)
3QFY17 net revenues Net Revenues 8,648 7,531 14.8 6,156 40.5 22,874 23,283 (1.8)
/EBIDTA/APAT growth of Material Expenses (6,986) (6,082) 14.9 (4,839) 44.4 (18,446) (18,904) (2.4)
14.8/27/45.8% ahead of our Employee Expenses (319) (311) 2.7 (353) (9.6) (987) (913) 8.2
estimate by (1.9)/5.2/18.5% Other Expenses (405) (400) 1.2 (311) 30.1 (981) (1,026) (4.4)
EBITDA 938 739 27.0 654 43.5 2,460 2,440 0.8
Depreciation (250) (218) 14.9 (253) (1.4) (758) (635) 19.3
EBIDTA margins expansion EBIT 688 521 32.1 400 71.9 1,702 1,805 (5.7)
of 104.1bps was led by Interest Cost (347) (378) (8.1) (356) (2.5) (1,028) (1,071) (4.0)
43.7/62.8bps savings in Other Income (inc EO Item) 164 198 (16.9) 143 15.2 506 490 3.3
employee costs/other PBT 505 341 48.2 187 170.6 1,181 1,224 (3.5)
expenses YoY Tax 19 (69) (127.3) (1) (1396.8) 15 (252) (106.0)
RPAT 524 272 93.1 185 183.0 1,196 972 23.1
Adjusted for MAT credit of EO Items (Adj For Tax) (108) 14 - (252) 104 (342.8)
Rs 107.8mn, APAT came in APAT 416 286 45.8 185 124.8 944 1,075 (12.2)
at Rs 416.2mn, 18.5% ahead Source: Company, HDFC sec Inst Research
of our estimates Margin Analysis
3QFY17 3QFY16 YoY (bps) 2QFY17 QoQ (bps) 9MFY17 9MFY16 YoY (%)
YTDFY17 order inflows Material Expenses % Net Sales 80.8 80.8 2.4 78.6 218.9 80.6 81.2 (55.3)
stood at Rs 22.7bn and Employee Expenses % Net Sales 3.7 4.1 (43.7) 5.7 (204.6) 4.3 3.9 39.5
9MFY17-end order book is Other Ope Expenses % Net Sales 4.7 5.3 (62.8) 5.1 (37.3) 4.3 4.4 (11.8)
Rs 77.1bn,excluding BRT EBITDA Margin (%) 10.8 9.8 104.1 10.6 22.9 10.8 10.5 27.6
HAM project of Rs 8.6bn Tax Rate (%) (3.7) 20.3 - 0.8 - (1.3) 20.6 -
APAT Margin (%) 4.8 3.8 102.3 3.0 180.6 4.1 4.6 (49.1)
Source: Company, HDFC sec Inst Research
To factor in back-ended
order book growth, we have Change of Estimates
cut our FY17-18E revenue FY17E FY18E FY19E
(INR mn)
estimates by 6-8%. Old New % Change Old New % Change Old New % Change
Increasing debt may result Revenues 35,076 32,847 (6.4) 43,011 39,239 (8.8) 45,982 46,174 0.4
in higher interest expenses EBIDTA 3,678 3,505 (4.7) 4,720 4,227 (10.4) 5,058 5,079 0.4
and hence 13-21% cut in EBIDTA Margins (%) 10.5 10.7 18.5 11.0 10.8 (20.0) 11.0 11.0 0.0
APAT 1,564 1,360 (13.0) 2,416 1,904 (21.2) 2,588 2,506 (3.2)
FY17-18E EPS
Adj. EPS (INR) 9.1 7.9 (13.0) 14.1 11.1 (21.2) 15.1 14.6 (3.2)
Source: Company, HDFC sec Inst Research

Page | 2
 SADBHAV ENGINEERING : RESULTS REVIEW 3QFY17

With a pick up in the roads Roads Share Of Order Book Has Been Growing Road orders: Captive BOT increasing
segment, share of road Rs bn Transportation Irrigation Mining Rs bn BOT EPC

orders have been growing 120 70

100 60
Within the roads vertical, 50
captive BOT projects have 80
40
been increasing on the back 60
of new HAM projects 30
40
20
Share of roads in revenue has 20 10
been increasing; mining 0 -
segment is stable and
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
4QFY15
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17

2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
4QFY15
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
irrigation has been highly
volatile
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

Roads Share Of Revenue Increasing Captive BOT Road Revenue Share To Go Up

Within roads, captive BOT Rs bn Transportation Irrigation Mining Rs bn BOT EPC
projects have been the main 10 8
contributors to revenue 7
earlier. With limited awards 8 6
in BOT over last few years, 5
Its order book share has 5 4
come down from 47.2% end- 3
1QFY14 to 1.7% as of 3 2
3QFY17. 1
- -

2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
4QFY15
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
4QFY15
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17

Going ahead, the trend may

change with new HAM win,
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

Page | 3
 SADBHAV ENGINEERING : RESULTS REVIEW 3QFY17

Order Book To Multiply 1.3x Over FY17-19E EBIDTA Margins To Remain At 11% In FY19E
We expect SEL order book to Order Book (Rs mn) Revenues (Rs mn)
multiply 1.3x over FY17-19E Order book/sales (x) - RHS Revenues (Rs bn) EBIDTA Margins (%) - RHS

150 6.0 50 12
Roads, Mining and Irrigation
40 10
segments shall be the key 120 5.0
drivers of the order book 90 4.0 30
8

6
SEL is evaluating Mining 60 3.0 20
4
development orders
30 2.0 10 2

Annual revenue potential - 1.0 - -

could be Rs9-10bn for SEL.
FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17E

FY18E

FY19E

FY19E
FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17E

FY18E
FY17-19E order inflow CAGR Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research
of 18.1% will largely be driven
by the Roads segment (this Order Inflow CAGR of 18.1% over FY17-19E Order Book Mix 3QFY17 (%)
includes recently-won HAM Mining
Order Inflow (Rs bn)
orders of Rs 31.3bn) 70
23%
63
Roads -
60 BOT
50
50 45 45 31%

The roads vertical contributes 40 34 36

32
about 64% to the order book, 30 24 22 23
followed by Mining and 20
Irrigation at 23% and 14%, Irrigation
10
respectively 14%
- Roads - EPC
32%
FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17E

FY18E

FY19E

Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

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 SADBHAV ENGINEERING : RESULTS REVIEW 3QFY17

Key Assumptions And Estimates

We expect SEL to deliver Key Assumptions Growth%
FY17E FY18E FY19E Comments
18.6% FY17-19E revenue Rs mn FY17E FY18E FY19E
CAGR. We expect 14% FY17-19E order book CAGR on
Closing order book 91,319 1,02,007 1,18,616 17.5 11.7 16.3
back of strong bid pipeline
Irrigation segment has Rs Order book growth (%) 17.5 11.7 16.3
900mn of legacy orders with We estimate 18.1% FY17-19E CAGR. SEL strong
New order booking 45,035 49,928 62,783 63.4 10.9 25.7 credential in roads, mining and irrigation
5.5% EBIDTA margins. These segment will drive ordering
projects will be completed Book to bill ratio 2.8 2.6 2.6 Book to bill ratio to remain stable
by 4QFY17E and leave scope With pick up in order booking we estimate
Total Revenue 32,847 39,239 46,174 3.1 19.5 17.7
for further margin 18.6% FY17-19E revenue CAGR.
expansion in FY18E Growth (%) 3.1 19.5 17.7
FY17-19E EBIDTA CAGR of 20.4% is higher than
EBIDTA 3,505 4,227 5,079 7.7 20.6 20.2 revenue CAGR owing to margins expansion. New
captive orders have 100bps higher margins
SIPL expects to receive Rs Margins expansion on account of higher margins
2bn from Maharashtra EBIDTA margin (%) 10.7 10.8 11.0 45.8 10.3 22.7
in new order
Border Checkpost project on Depreciation 1,001 1,127 1,289 17.9 12.6 14.3
account of refinancing. The We expect borrowing cost to reduce on account
proceeds may be realised of cut in interest rates and recovery of loans
Financial Charges 1,493 1,276 1,181 (1.4) (14.6) (7.4) given to SIPL and higher mobilization advance for
during 1QFY18E and SIPL
HAM project. SIPL is expected to repay Rs 2bn
may repay SEL loans. This SEL loans by 1QFY18E
will bring down interest PBT 1,719 2,539 3,341 7.4 47.7 31.6 FY17-19E PBT CAGR of 39.4%
costs for SEL PBT margin expansion in line with EBIDTA
PBT margin (%) 5.2 6.5 7.2 21.1 123.8 76.5
expansion and reduction in interest expense
Besides interest, free Tax 17 635 835 (93.5) 3,592.7 31.6
mobilisation advance of Rs Tax rate (%) 1.0 25.0 25.0
3.1bn for HAM projects is FY17-19E PAT CAGR of 35.8%. Includes MAT
APAT 1,360 1,904 2,506 0.7 40.0 31.6
credit adjustment
expected in 1QFY18E, which
Margins to expand owing to operating leverage
will lower FY18E interest Net margin (%) 4.1 4.9 5.4 (9.6) 71.3 57.4 benefit though partly negated by higher tax
expenses outgo

We have estimated 28.7%

adjusted EPS CAGR for FY17-
19E

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 SADBHAV ENGINEERING : RESULTS REVIEW 3QFY17

Key Assumptions Growth%

FY17E FY18E FY19E Comments
SEL to generate surplus free Rs mn FY17E FY18E FY19E
cash flow over FY17-19E Gross Block Turnover 3.1 3.2 3.4 (9.0) 4.7 4.7 Improvement on account of new orders inflow
Debtor days 112 103 100 2.2 (7.8) (2.7)
Cashflow improvements in line with EBIDTA
CFO a 4,492 3,136 3,608
growth and EBIDTA margins expansion
We are building cumulative Rs 1.1bn Capex over
CFI b (291) 15 (768)
FY17-19E
Strong free cash flow generation as growth picks
FCF - a+b 3,242 1,636 2,108
up
CFF c (2,714) (3,017) (2,222) Surplus cash flows utilized to repay debt
Total change in cash -
1,487 135 618
a+b+c
Source: HDFC sec Inst Research

Page | 6

We value standalone EPC
business at Rs 219/share
(15x one-year forward
Mar-19E EPS)
Our target P/E multiple is in
line with peers like KNR
Construction and J Kumar
Infra
Mining development
opportunities can add about
30% to our FY19E EPS. We
await order wins in this
segment before
incorporating them in our
numbers
We value SEL stake in SIPL
at 20% holding company
discount to current market
capitalisation of SIPL at Rs
96/sh.
We rate SEL as BUY with a
SOT- based target price of
Rs327 /share (earlier SOTP
of Rs 321/share).
Outlook And Valuation
Target Price of Rs 327 implies ~18.9% upside
Valuation Methodology
We have valued SEL on P/E basis in line with peers,
namely KNR/J Kumar, at 15x one-year forward. Our
rationale behind this is (1) Robust order book at 2.6x
FY17E revenue, (2) Improving balance sheet (FY19E net
D/E will improve to 0.31x from 0.85x end 3QFY17), (3)
EBIDTA margins expansion, and (4) 35.8% FY17-19E EPS
CAGR. With SIPL turning cash positive it may be in
position to return SEL loans and may not require
further equity support for Hybrid BOT/Toll projects.
This shall help SEL to retire its own debt.
SEL is chasing opportunities in the Mining development
and operations (MDO) segment. The company would
be bidding for long term MDO opportunities in JV with
overseas partners. In case of a win, MDO may add
about Rs 10bn in annual revenues and Rs 700mn in
profit. This will be a ~30% upside to our FY19E
numbers. There is limited completion in this segment
SOTP Valuation
Value
Particulars Segments
(Rs mn)
Core construction
Sadbhav Standalone 37,587
business
SIPL stake Subsidiary 18,489
Total 56,076
Source: HDFC sec Inst Research
SADBHAV ENGINEERING : RESULTS REVIEW 3QFY17
as number of qualified bidders are less than 10 viz. BGR
mining, NCC, Adani, Sainik, EMTA, Sadbhav, AMR
Construction. Besides it requires huge outlay on mining
capex with asset turns of 1.5x and asset life of 5-6yrs.
The government-led spends in the infrastructure sector
will continue to drive stock performance and SEL, with
its strong credentials, will likely benefit from the pickup
in ordering activity. The company, over the past many
years, has built strong pre-qualification in potentially
large ordering segments such as roads, mining and
irrigation.
We maintain BUY stance on SEL with SOTP-based
target price of Rs 327/share (vs. Rs 321/share earlier).
We value the (1) Standalone EPC business at Rs
219/share (15x one-year forward Mar-19 EPS) and (2)
SEL stake in SIPL at 20% holding company discount to
current market capitalization at Rs 96/sh.
Value per share
Rationale
(Rs)
219 At 15x FY19E EPS
We have valued the 68.3% stake of SEL in SIPL
108 by giving a 20% holding company discount to
current market capitalization (at Rs 96/share)
327
Page | 7
 SADBHAV ENGINEERING : RESULTS REVIEW 3QFY17

Income Statement (Standalone) Balance Sheet (Standalone)

Year ending March (Rs mn) FY15 FY16 FY17E FY18E FY19E As at March (Rs mn) FY15 FY16 FY17E FY18E FY19E
Net Revenues 29,698 31,863 32,847 39,239 46,174 SOURCES OF FUNDS
Growth (%) 25.9 7.3 3.1 19.5 17.7 Share Capital 172 172 172 172 172
Material Expenses 24,362 25,905 26,656 32,108 37,771 Reserves 13,349 14,543 16,024 17,688 19,952
Employee Expenses 974 1,222 1,307 1,452 1,616 Total Shareholders Funds 13,521 14,715 16,196 17,859 20,124
Other Expenses 1,360 1,482 1,380 1,452 1,708 Long Term Debt 5,583 4,891 4,891 4,891 4,091
EBIDTA 3,002 3,254 3,505 4,227 5,079 Short Term Debt 5,381 7,275 6,275 4,775 4,775
EBIDTA (%) 10.1 10.2 10.7 10.8 11.0 Total Debt 10,964 12,167 11,167 9,667 8,867
EBIDTA Growth (%) 20.6 8.4 7.7 20.6 20.2 Deferred Taxes 244 232 232 232 232
Depreciation 817 849 1,001 1,127 1,289 Other Long Term Liab & LT Provs 337 32 32 32 32
EBIT 2,185 2,404 2,504 3,100 3,790 TOTAL SOURCES OF FUNDS 25,065 27,145 27,626 27,789 29,254
Other Income (Incl EO Items) 655 711 709 715 732 APPLICATION OF FUNDS
Interest 1,382 1,515 1,493 1,276 1,181 Net Block 5,357 5,550 5,799 6,171 6,382
PBT 1,459 1,600 1,719 2,539 3,341 Investments 5,313 5,278 5,078 4,778 4,778
Tax 321 263 17 635 835 Long Term Loans & Advances 5,588 6,413 6,363 5,863 5,863
RPAT 1,137 1,337 1,702 1,904 2,506 Other Non-current Assets 293 378 378 378 378
EO (Loss) / Profit (Net Of Tax) (119) 13 (342) - - Total Non-current Assets 16,551 17,620 17,618 17,191 17,402
APAT 1,018 1,350 1,360 1,904 2,506 Inventories 2,134 1,406 1,315 1,407 1,656
APAT Growth (%) (17.6) 32.6 0.7 40.0 31.6 Debtors 9,067 9,994 10,079 12,041 13,283
EPS 5.9 7.9 7.9 11.1 14.6 Cash & Equivalents 351 366 1,853 1,988 2,606
EPS Growth (%) (27.1) 32.6 0.7 40.0 31.6 ST Loans & Advances 6,506 5,948 6,120 6,450 7,590
Source: Company, HDFC sec Inst Research Other Current Assets 641 852 900 968 1,139
Total Current Assets 18,699 18,566 20,267 22,854 26,274
Creditors 4,411 3,703 4,050 4,838 5,693
Other Current Liabilities 4,154 4,084 4,860 5,805 6,831
Short Term Provisions 1,620 1,255 1,350 1,613 1,898
Total Current Liabilities & Provns 10,185 9,041 10,259 12,256 14,422
Net Current Assets 8,514 9,525 10,007 10,598 11,852
TOTAL APPLICATION OF FUNDS 25,065 27,145 27,626 27,789 29,254
Source: Company, HDFC sec Inst Research

Page | 8
 SADBHAV ENGINEERING : RESULTS REVIEW 3QFY17

Cash Flow (Standalone) Key Ratios (Standalone)

Year ending March (Rs mn) FY15 FY16 FY17E FY18E FY19E FY15 FY16 FY17E FY18E FY19E
Reported PBT 1,137 1,337 1,719 2,539 3,341 PROFITABILITY (%)
Non-operating & EO items (148) (289) (709) (715) (732) GPM 18.0 18.7 18.9 18.2 18.2
Interest expenses 1,381 1,506 1,493 1,276 1,181 EBITDA Margin 10.1 10.2 10.7 10.8 11.0
Depreciation 817 849 1,001 1,127 1,289 EBIT Margin 7.4 7.5 7.6 7.9 8.2
Working Capital Change (2,963) (1,105) 1,005 (456) (636) APAT Margin 3.8 4.2 5.2 4.9 5.4
Taxes (589) (659) (17) (635) (835) RoE 7.5 9.2 8.4 10.7 12.5
OPERATING CASH FLOW ( a ) (365) 1,639 4,492 3,136 3,608 Core RoCE 8.8 9.3 12.0 11.1 13.0
Capex (1,489) (860) (1,250) (1,500) (1,500) RoCE 10.8 12.2 13.7 13.6 15.5
Free cash flow (FCF) (1,854) 779 3,242 1,636 2,108 EFFICIENCY
Investments (1,027) (248) 959 1,515 732 Tax Rate (%) 22.0 16.5 1.0 25.0 25.0
INVESTING CASH FLOW ( b ) (2,516) (1,108) (291) 15 (768) Asset Turnover (x) 3.5 3.4 3.1 3.2 3.4
Share capital Issuance 3,153 2 - - - Inventory (days) 26 16 15 13 13
Debt Issuance 662 1,119 (1,000) (1,500) (800) Debtors (days) 101 109 112 103 100
Interest expenses (1,325) (1,495) (1,493) (1,276) (1,181) Other Current Assets (days) 160 156 153 127 118
FCFE (2,517) 403 749 (1,140) 127 Payables (days) 54 42 45 45 45
Dividend (124) (145) (221) (241) (241) Other Current Liab (days) 75 62 69 69 69
FINANCING CASH FLOW ( c ) 2,366 (519) (2,714) (3,017) (2,222) Cash Conversion Cycle (days) 158 177 165 129 117
NET CASH FLOW (a+b+c) (515) 12 1,487 135 618 Debt/EBITDA (x) 3.7 3.7 3.2 2.3 1.7
Closing Cash & Equivalents 351 366 1,853 1,988 2,606 Net D/E 0.78 0.80 0.58 0.43 0.31
Source: Company, HDFC sec Inst Research Interest Coverage 1.6 1.6 1.7 2.4 3.2
PER SHARE DATA
EPS (Rs/sh) 5.9 7.9 7.9 11.1 14.6
CEPS (Rs/sh) 12.2 14.6 17.9 20.1 25.1
DPS (Rs/sh) 0.7 0.9 1.1 1.2 1.2
BV (Rs/sh) 78.8 85.8 94.4 104.1 117.3
VALUATION
P/E 46.3 35.0 34.7 24.8 18.8
P/BV 3.5 3.2 2.9 2.6 2.3
EV/EBITDA 19.2 18.1 16.1 13.0 10.5
OCF/EV (%) (0.6) 2.8 8.0 5.7 6.8
FCF/EV (%) (3.2) 1.3 5.7 3.0 3.9
FCFE/Market Cap (%) (5.3) 0.9 1.6 (2.4) 0.3
Dividend Yield (%) 0.3 0.3 0.4 0.4 0.4
Source: Company, HDFC sec Inst Research

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 SADBHAV ENGINEERING : RESULTS REVIEW 3QFY17

RECOMMENDATION HISTORY
Sadbhav TP
Date CMP Reco Target
400 9-Feb-16 299 BUY 367
29-Apr-16 263 BUY 324
350 6-Sep-16 290 BUY 324
2-Dec-16 275 BUY 321
300 16-Feb-17 275 BUY 327

250
Rating Definitions
200 BUY : Where the stock is expected to deliver more than 10% returns over the next 12 month period
Feb-16

Sep-16

Feb-17
Nov-16
Jun-16
May-16

Dec-16
Mar-16

Oct-16
Aug-16
Apr-16

Jan-17
Jul-16

NEUTRAL : Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period
SELL : Where the stock is expected to deliver less than (-)10% returns over the next 12 month period

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 SADBHAV ENGINEERING : RESULTS REVIEW 3QFY17

Disclosure:
I, Parikshit Kandpal, MBA author and the name subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject
issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also Research Analyst or his relative or HDFC Securities Ltd. or its
Associate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Further
Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material conflict of interest.
Any holding in stock No

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