Angel Broking has maintained `Buy` on Sadbhav Engineering with a price target of Rs 157 in its report dated March 09, 2012. The broking house gave the following rationale:

Sadbhav Engineering (SEL) has been declared the lowest bidder for four laning of Gomati ka Chauraha -Udaipur section of NH-8 in Rajasthan.

The project has been awarded by NHAI under NHDP Phase IV on DBFOT basis. The estimated  total cost of development of the said project is Rs 12.8 billion. The concession period of the project is 27 years from the appointed date. We believe this is positive for the company, as SEL had not won any major road project since October 2010.

At current levels, the stock is trading at valuations of 12.4x FY2013E earnings and 1.8x FY2013E P/BV on standalone basis.  Based on a target P/E multiple of 9x and valuing the company`s BOT arm on DCF basis, our SOTP-based target price works out to Rs 157. Hence, we maintain our Buy rating on the stock.

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