Sadbhav Engineering hits upper circuit on winning 2 EPC projects from NHAI

Sadbhav Engineering Limited (SEL) has bagged two new engineering, procurement & construction (EPC) road projects from National Highways Authority of India (NHAI) with a bidding cost of Rs 1,572.30 crore. Both projects are estimated to get completed within 24 months.

Post this development, the stock of Sadbhav Engineering Ltd has hit the upper circuit of 5 per cent at Rs 49.25 on BSE.

The first project includes the construction of a four-lane expressway from Sardar Patel Ring Road to Sindhrej Village of Ahmedabad District of 22 km of Ahmedabad-Dholera Greenfield Alignment (NH-751) in the state of Gujarat under Bharatmala Pariyojana (package-I). The bidding cost of this project was Rs 690.30 crore.

The second project includes the construction of another four-lane expressway from Sindhrej Village to Vejalka village of Ahmedabad District from 22 km to 48.52 km of Ahmedabad-Dholera Greenfield Alignment (NH-751) in the state of Gujarat under Bharatmala Pariyojana (package-II). The bidding cost of this project was Rs 882 crore.

As of March 31, 2020, the company’s order book stood at Rs 8,371.90 crore. The order book constitutes of transport sector - 71.46 per cent, mining sector - 24.19 per cent and irrigation sector - 4.35 per cent. Considering its consolidated revenue for FY20, the book-to-bill ratio stands at 2.4x.

On Thursday, the stock of Sadbhav Engineering opened at Rs 48.30 on BSE. During the day, it was trading at a consolidated level and at 1.22 pm, it hit an upper circuit of 5 per cent from its previous close of Rs 46.95.