Share Review Sadbhav Engineering : Target Price Rs.199

We expect Sadbhav Engineering (SEL) to post a weak numbers on account of high base in 4QFY2011. Revenue is expected to decline by 18.2% to  Rs.856.2 cr.

However, on a sequential basis, it implies growth of 18.3%. EBITDA margin is expected to witness a jump of 130bp  y o y to 10.0% on account of low EBITDAM
posted in 4QFY2011 due to higher sub-contracting charges.

On the earnings front, the company is expected to post a decline of 1.9%  y o y to  Rs.52.9 cr.

We maintain our Buy view on the stock with a target price of  Rs.199.


By Angel Broking,  6th Floor, Ackruti Star Central Road,MIDC,  Andheri (E) , Mumbai-93  
Main : (91-22) 3935 7600 Extn : 6956 Website : www.angelbroking.com

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