Reviews

SADBHAV INFRASTRUCTURE PROJECT

Ticker: 539346 FV: Rs.10
52-Week H/L: Rs.157.50/89.65

We had recommended Sadbhav Infra in Volume no 34, Issue No 11 (dated Jan 1, 2018), when the scrip was trading at Rs 144. Our recommendation was backed by factors like reduction in net loss and new projects from NHAI. We had reviewed the stock and had recommended investors to hold the scrip. Currently, the company has ten BOT projects with total of 2595.92 lane kms, of which six are operational, one is partially operational and three are under development. Recently, it won a contract worth Rs 55 crore for maintenance and repair of a road in Rajasthan. In Q1FY19, the company’s revenue was up 59 per cent YoY and the net loss too reduced from Rs 120 crore to Rs 65 crore on a YoY basis. The execution in FY19 has improved due to good monsoon, and thus, we urge investors to HOLD the scrip.



NCC

Ticker: 500294 FV: Rs.2
52-Week H/L: Rs.141.85/77

We had recommended NCC in Volume no 34, Issue No 44 (dated Aug 20, 2018), when the scrip was trading at Rs 101. Our recommendation was backed by factors like robust financial performance and strong order book. The traction in road and building projects and electrical business continue to be the drivers for the company. A large portion of the order book consists of fast track orders and is expected to get executed within two years. Also, the LI order of Mumbai-Nagpur project might get converted into order worth Rs 3,000 crore in the upcoming months. The outlook of infrastructure space looks positive on the back of Indian government promoting investments in the sector. Considering these factors, we urge investors to HOLD the scrip.