1QFY2012 Result Update | Infrastructure

July 29, 2011

Sadbhav Engineering
Performance Highlights
Y/E March (` cr) Net sales Operating profit Net profit
Source: Company, Angel Research

ACCUMULATE
CMP Target Price
% chg (yoy) 44.1 33.8 32.4 4QFY11 1,046.7 90.8 53.9 % chg (qoq) (41.4) (25.4) (37.3)

`143 `161
12 Months

1QFY12 612.9 67.8 33.8

1QFY11 425.3 50.7 25.5

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (` ) BSE Sensex Nifty Reuters Code Bloomberg Code

Infrastructure 2,137 0.6 164/94 28,346 1 18,197 5,482 SADE.BO SADE@IN

For 1QFY2012, Sadbhav Engineering (SEL) posted healthy set of numbers on all fronts. We believe SEL has performed far better than its peers on the bourses owing to 1) consistent quarterly growth on the earnings front; 2) better management of its finances with lower debt levels (standalone) in FY2011 despite a healthy portfolio of BOT assets; and 3) healthy order book. However, given SELs outperformance and limited upside from current levels to our target price, we maintain our Accumulate rating on the stock. Strong quarterly performance: SEL reported 44.1% yoy top-line growth to `612.9cr (`425.3cr) vs. our estimate of 54.0%. Ramp-up in the execution of captive road BOT projects has led to this robust revenue growth. The companys EBITDAM stood at 11.1% (11.9%), above our expectation of 9.7%. We were expecting higher revenue growth and lower EBITDAM on account of sub-contracting of captive road BOT projects (as seen in 4QFY2011). Interest and depreciation costs came in at `12.6cr (`6.0cr) and `6.9cr (`6.5cr), respectively, and were in-line with our estimates. On the earnings front, SEL reported robust 32.4% growth yoy to `33.8cr (`25.5cr), ahead of our expectations of `30.3cr because of higher EBITDAM. Outlook and valuation: With the pick-up in award activity from NHAI, we are optimistic on the road segment, given the quantum of opportunities lined up in the sector. We expect the company to log a CAGR of 13.9% and 10.3% in its top line and bottom line, respectively, over FY201113 on the back of high base created in FY2011. We believe SEL will take a breather to consolidate before the next leap. At current levels, the stock is trading at valuations of 9.0x FY2013E EPS (adjusted for BOT investments), which is reasonable. Hence, we maintain our Accumulate view on the stock with an SOTP-based target price of `161.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 47.6 26.7 23.2 2.6

Abs. (%) Sensex Sadbhav

3m (4.9) 5.3

1yr 1.1 7.1

3yr 31.9 73.9

Key financials (Standalone)

Y/E March (` cr) Net sales % chg Adj. net profit % chg EBITDA (%) FDEPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 1,257 17.0 53.8 (28.6) 11.0 3.6 39.7 5.5 14.7 16.4 2.0 18.3

FY2011 2,209 75.8 119.6 122.1 10.2 8.0 17.9 3.4 23.5 21.3 1.1 10.8

FY2012E 2,602 17.8 126.2 5.5 9.8 8.4 16.9 2.9 18.4 18.4 1.0 10.5

FY2013E 2,865 10.1 145.5 15.3 10.4 9.7 14.7 2.4 17.9 17.8 0.9 8.9

Shailesh Kanani
022-39357800 Ext: 6829 shailesh.kanani@angelbroking.com

Nitin Arora
022-39357800 Ext: 6842 nitin.arora@angelbroking.com

Please refer to important disclosures at the end of this report

Sadbhav Engineering | 1QFY2012 Result Update

Exhibit 1: 1QFY2012 performance

Y/E March (` cr) Net sales Total expenditure Operating profit OPM (%) Interest Depreciation Non operating income Non-recurring items Profit Before Tax Tax Reported Profit After Tax PAT (%) EPS (`)
Source: Company, Angel Research

1QFY12 612.9 545.1 67.8 11.1 12.6 6.9 1.6 49.9 16.1 33.8 5.5 2.3

1QFY11 425.3 374.7 50.7 11.9 6.0 6.5 0.2 38.3 12.8 25.5 6.0 1.7

% chg (yoy) 44.1 45.5 33.8 (80)bp 108.0 7.2 690.2 30.1 25.6 32.4 (50)bp 32.4

4QFY11 1,046.7 955.9 90.8 8.7 11.3 6.9 3.4 76.0 22.0 53.9 5.2 3.6

% chg (qoq) (41.4) (43.0) (25.4) 240bp 10.9 0.7 (52.5) (34.4) (27.1) (37.3) 30bp (37.3)

FY2011 2,209.2 1,983.4 225.8 10.2 28.4 26.9 5.2 175.7 56.2 119.6 5.4 8.0

FY2010 1,256.9 1,119.3 137.7 11.0 33.1 23.3 16.6 98.0 44.1 53.8 4.3 3.6

% chg 75.8 77.2 64.0 (80)bp (14.2) 15.5 (68.7) 79.4 27.3 122.1 110bp 122.1

Exhibit 2: Actual vs. Estimates

Estimates Revenue (` cr) EBITDA margin (%) PAT (` cr)
Source: Company, Angel Research

Actual 612.9 11.1 33.8

Variation (%) (6.4) 140bp 11.5

655.0 9.7 30.3

Strong performance on the revenue front, as expected

For 1QFY2012, SEL reported healthy 44.1% yoy top-line growth to `612.9cr (`425.3cr) vs. our estimate of 54.0%. Ramp-up in the execution of captive road BOT projects via sub-contracting (KNR Construction and GKC Projects) on Bijapur Hungund, Hyderabad Yadgiri and Ranchi ring road projects led to this robust growth in revenue. SEL is executing its captive projects at a fast pace and the company is expecting to complete Hyderabad Yadgiri project by May 2012. Further, Bijapur Hungund and Dhule Palasner projects are expected to be substantially completed in FY2012 and start generating tolls. Going ahead, SEL is banking on winning projects from NHAI, but it is currently staying away from stiff competition in the road segment.

July 29, 2011

Sadbhav Engineering | 1QFY2012 Result Update

Exhibit 3: Expect the execution momentum to continue

1200 1000 800 600 400 200 0 51.7 22.9 19.9 42.1 40.8 10.5 14.5 11.4 14.7 51.2 44.1 128.9 140.0 120.0 100.0 80.0 60.0 40.0 20.0 -

Exhibit 4: Road segment Lions share of overall revenue (%)

100 90 80 70 60 50 40 30 20 10 3 11 14 14 16 6 13 10 10 11 10 14

86 72

78

77

79

75

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

FY2008

FY2009 Road BOT

FY2010

FY2011

FY2012E Mining

FY2013E

Irrigation

Sales (` cr, LHS)

Growth (yoy %, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Stable margin, revenue growth lead to healthy NPM

SEL reported EBITDAM of 11.1% (11.9%), above our estimate of 9.7%. We were expecting higher revenue growth and lower EBITDAM on account of sub-contracting of captive road BOT projects (as seen in 4QFY2011). Interest and depreciation costs came in at `12.6cr (`6.0cr) and `6.9cr (`6.5cr), respectively, and were in-line with our estimates. On the earnings front, SEL reported robust 32.4% yoy growth to `33.8cr (`25.5cr), higher than our expectation of `30.3cr owing to higher EBITDAM.
Exhibit 5: EBITDAM stable
100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 11.4 11.1 9.0 9.1 11.9 11.9 12.0 14.0 11.1 8.7 11.1 12.0 10.0 8.0 6.0 4.0 2.0 2QFY09 3QFY09 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Exhibit 6: Good show on all fronts led to healthy PATM

60.0 50.0 40.0 30.0 20.0 10.0 0.0
2QFY09 3QFY09 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

7.3 6.0 4.8 4.5 3.0 2.0 6.0 5.3 5.5 5.2 5.5

8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 -

9.3

10.1

2.6

EBITDA (` cr, LHS)

EBITDAM (%, RHS)

PAT (` cr, RHS)

PATM (%, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

July 29, 2011

Sadbhav Engineering | 1QFY2012 Result Update

Outlook and valuation

NHAI has begun FY2012 on an aggressive note by awarding projects of ~1,000kms in April and May 2011. This is in-line with NHAIs revised target of ~11,000kms for FY2012, an increase of whopping 117% over FY2011. With the pick-up in award activity from NHAI, we are optimistic on the road segment, given the quantum of opportunities lined up in the sector. We expect the company to log a CAGR of 13.9% and 10.3% in its top line and bottom line, respectively, over FY201113 on the back of high base created in FY2011. We believe SEL will take a breather to consolidate before the next leap. At current levels, the stock is trading at valuations of 9.0x FY2013E EPS (adjusted for BOT investments). Hence, we recommend Accumulate on the stock with an SOTP-based target price of `161.

Exhibit 7: SOTP break-up

Business Segment
Construction (a) SIPL - Road BOT Projects Abad Ring Road (SIPL's share 80%) Aurangabad - Jalna (SIPL's share 51%) Mumbai - Nasik (SIPL's share 20%) Nagpur - Seoni (SIPL's share 51%) Dhule - Palasner (SIPL's share 27%) Maharashtra Border (SIPL's share 90%) Rohtak - Panipat (SIPL's share 100%) Bijapur - Hungund (SIPL's share 77%) Hyderabad - Yadgiri (SIPL's share 60%) Value of Incremental Projects - 10% SEL holds 77.8% stake in SIPL (b) Total (a+b) Source: Company, Angel Research PE investors have bought 22.2% stake for Rs400cr valuating SIPL at `1,800cr NPV NPV NPV NPV NPV NPV NPV NPV NPV CoE -14%, Traffic & Toll increase 5% each CoE -14%, Traffic 5% & Toll increase 18.5% (every 3 years) CoE -14%, Traffic & Toll increase 5% each CoE -14%, Traffic & Toll increase 5% each CoE -14%, Traffic & Toll increase 5% each CoE -14%, Traffic & Toll increase 5% each CoE -14%, Traffic & Toll increase 5% each CoE -14%, Traffic & Toll increase 5% each CoE -14%, Traffic & Toll increase 5% each

Methodology
P/E

Remarks
9x FY2013E earnings

` cr `/share
1,310 1,415.8 216 69 110 36 102 342 253 89 71 128.7 1,102 87.4 94.5 14.4 4.6 7.3 2.4 6.8 22.9 16.9 5.9 4.7 8.6 73.5 160.9

Exhibit 8: Key assumptions

FY2008 FY2009 FY2010 Order inflow Revenue Order backlog (Y/E) Order bookto-sales ratio (x)
Source: Company, Angel Research

FY2011 FY2012E FY2013E 3,180 2,209 6,965 3.2 4,090 2,602 8,453 3.2 4,386 2,865 9,973 3.5

1,183 899 2,764 3.1

2,649 1,074 4,339 4.0

2,912 1,257 5,994 4.8

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Sadbhav Engineering | 1QFY2012 Result Update

Exhibit 9: BOT assumptions

Project Type Status KM Issuing Auth. State Concession (Yrs) Con. Start Con. End TPC (` cr) Equity (` cr) Debt (` cr) Grant (` cr) Traffic Growth (%) Toll inc (%) Interest Rate (%) ARRIL Toll Oper. 76 AUDA Gujarat 20 Jan-07 Jan-27 515.0 74.0 405.0 36.0 5.0 5.0 11.0 AJIT Toll Oper. 66 MSRDC Mah. 24 Jan-07 Jul-30 277.0 83.0 194.0 5.0 5.0 11.0 MNEL Toll Oper. 100 NHAI Mah. 20 Dec-09 Dec-29 753.0 52.0 650.0 51.0 5.0 5.0 11.0 NSEL Annuity Under Dev. 57 NHAI MP 20 May-07 Nov-27 489.0 106.9 382.1 11.3 DPTL Toll Under Dev. 97 NHAI Mah./MP 18 Dec-09 Dec-27 1,420.0 355.0 1,065.0 5.0 5.0 11.3 MBCPNL Entry Fees Under Dev. MSRDC Mah. 25 Apr-12 Aug-34 1,426.4 285.4 1,141.0 5.0 5.0 11.3 RPTL Toll Under Dev. 66 NHAI Haryana 25 Sep-10 Sep-35 1,213.6 242.8 970.8 5.0 5.0 11.3 BHTL Toll Under Dev. 100 NHAI Karnataka 20 Mar-13 Sep-30 1,257.1 137.0 846.5 273.6 5.0 5.0 11.3 HYTL Toll Under Dev. 35 NHAI AP 23 Aug-10 Aug-33 480.2 100.0 380.2 5.0 5.0 11.3

Source: Company, Angel Research

Exhibit 10: Angel EPS forecast vs. consensus

Angel Forecast FY2012E FY2013E
Source: Company, Angel Research

Bloomberg consensus 9.6 11.0

Variation (%) 13.4 13.2

8.4 9.7

July 29, 2011

Sadbhav Engineering | 1QFY2012 Result Update

Investment arguments
Aggressive ramp-up of the road BOT portfolio, leveraging on EPC competence: SEL has slowly and steadily moved up the value chain from being a cash contractor to becoming an asset owner. The company is leveraging its core competence in the EPC business to encash on the upcoming opportunities in the road BOT space. This not only serves to shore up its EPC order book but also ensures a consistent revenue stream for SEL in the long run. Strong order book renders top-line visibility: As of 4QFY2011, SEL had a robust order book of `6,965cr (3.2x FY2011 revenue), owing to healthy order booking witnessed in the road segment. SELs order book is spread across segments, including road (73.6%), irrigation (13.8%) and mining (12.7%), with an average execution period of 2430 months. Pertinently, the robust order book continues to provide top-line visibility for the company.

Key concerns
Interest rate: Road BOT projects are vulnerable to interest rate fluctuations, and any hike in interest rates would increase SELs interest costs. Commodity risks: Road players are facing pressures from the recent price inflation in commodities such as cement and steel, which have a direct impact on margins. Awarding from NHAI: Slowdown in awarding activity by NHAI would hit order inflow for road-focused players such as SEL.

Exhibit 11: Recommendation summary

Company CCCL HCC IRB Infra IVRCL JP Assoc. Punj Lloyd NCC SEL Simplex In. Patel Engg. Madhucon L&T ITNL CMP 28 30 174 62 67 70 73 143 300 135 87 210 TP Rating FY11 - Neutral - Neutral 191 100 108 109 161 404 106 308 Accu. Buy Buy Buy Accu. Buy Buy Buy Buy 2,199 4,093 2,438 5,651 8,166 5,074 2,209 4,896 3,499 1,705 4,049 Top line (` cr) FY12E 2,362 4,723 2,999 6,275 FY13E CAGR (%) 2,646 5,485 3,995 7,494 9.7 15.8 28.0 15.2 19.0 16.0 16.9 13.9 17.2 1.2 19.5 22.3 26.4 EPS (`) FY11 FY12E FY13E CAGR (%) 2.5 1.2 13.6 5.9 3.1 (1.5) 6.4 8.0 25.1 18.4 6.9 58.2 22.3 1.5 0.7 12.7 6.2 5.1 3.7 5.9 8.4 24.1 15.5 6.7 68.3 25.0 3.6 1.2 14.5 8.2 6.8 5.9 7.3 9.7 36.7 23.0 8.4 82.5 26.1 18.4 1.0 3.3 17.5 48.8 6.9 10.3 21.0 11.8 10.2 19.0 8.1 Adj. P/E OB/ 7.8 0.5 6.4 4.3 9.8 11.9 5.5 7.1 8.2 2.3 4.8 15.3 1.4 2.8 4.2 4.2 2.8 3.2 3.2 3.0 2.7 3.5 3.0 5.5 FY11 FY12E FY13E Sales(x) 10.9 0.5 6.8 6.0 21.7 6.2 8.7 12.0 2.9 5.8 21.7 1.7 18.4 0.8 7.3 5.7 13.0 19.1 6.7 8.2 12.5 3.5 5.9 18.5 1.5

13,217 15,860 18,708 9,585 10,992 5,856 2,602 5,373 3,272 1,898 4,908 6,939 2,865 6,721 3,587 2,434 6,467

- Neutral

- Neutral

1,726 2,030

44,265 56,137 66,161

Source: Company, Angel Research

July 29, 2011

Sadbhav Engineering | 1QFY2012 Result Update

Exhibit 12: SOTP break-up

Company ` CCCL HCC IRB Infra IVRCL JP Assoc. Punj Lloyd NCC Sadbhav Simplex In. Patel Engg Madhucon L&T ITNL 28 11 110 74 32 96 76 87 404 61 59 1,567 136 Core Const. % to TP 100 26 58 73 30 100 70 54 100 43 55 77 44 ` 23 31 2 47 2 Real Estate % to TP 58 29 2 33 2 ` 6 77 8 73 16 33 148 Road BOT % to TP 16 40 8 46 11 31 48 Invst. In Subsidiaries ` 5 27 463 % to TP 2 27 23 ` 44 23 19 12 24 Others % to TP 41 21 14 12 8 Total ` 28 40 191 100 108 96 109 161 404 143 106 2,030 308

Source: Company, Angel Research

July 29, 2011

Sadbhav Engineering | 1QFY2012 Result Update

Profit & loss statement (Standalone)

Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel Other EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earnings of asso Less: Minority interest (MI) Prior period items PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Reported EPS (`) Adj. EPS (`) % chg FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E 899 899 84.1 798 233.9 524 39.5 1.5 100.2 65.8 11.2 13.9 86.4 89.5 9.6 15.7 3.9 5.2 74.5 79.4 74.5 23.6 31.7 50.9 50.9 50.9 72.5 5.7 4.1 3.4 72.5 1,074 1,074 19.5 954 276.4 625 51.3 1.2 120.0 19.7 11.2 15.7 104.3 20.8 9.7 21.4 11.7 12.4 94.6 27.0 94.6 19.2 20.3 75.4 75.4 75.4 48.0 7.0 6.0 5.0 48.0 1,257 1,257 17.0 1,119 210.7 843 66.3 (0.6) 137.7 14.7 11.0 23.3 114.4 9.7 9.1 33.1 16.6 17.0 98.0 3.5 98.0 44.1 45.0 53.8 53.8 53.8 (28.6) 4.3 4.3 3.6 (28.6) 2,209 2,209 75.8 1,983 1,867 116.4 225.8 64.0 10.2 26.9 198.9 73.9 9.0 42.7 19.5 11.1 175.7 79.4 175.7 56.2 32.0 119.6 119.6 119.6 122.1 5.4 8.0 8.0 122.1 2,602 2,602 17.8 2,347 720.7 1,517 109.8 254.4 12.7 9.8 34.7 219.8 10.5 8.4 54.5 21.5 11.5 186.8 6.3 186.8 60.6 32.4 126.2 126.2 126.2 5.5 4.8 8.4 8.4 5.5 2,865 2,865 10.1 2,568 779.4 1,667 121.2 297.7 17.0 10.4 42.6 255.1 16.1 8.9 63.3 23.6 11.0 215.4 15.3 215.4 69.9 32.4 145.5 145.5 145.5 15.3 5.1 9.7 9.7 15.3

July 29, 2011

Sadbhav Engineering | 1QFY2012 Result Update

Balance sheet (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Current Assets Inventories Debtors Cash Loans & Advances Other Current liabilities Net Current Assets Misc. Exp. not written off Total Assets 241.4 98.4 143.0 120.5 434 85.0 154 10.3 168.5 16.1 253 181 1.7 446 260.6 106.1 154.5 124.6 592 27.6 278 10.0 275.7 0.5 306 286 0.8 566 332.2 122.1 210.1 144.1 1,009 54.0 441 44.8 466.8 2.8 534 476 830 378.8 149.0 229.8 326.4 1,434 69.2 687 84.6 586.1 7.3 952 482 1,038 458.8 183.6 275.1 425.1 1,690 88.0 849 56.7 690.3 5.8 1,036 654 1,354 563.8 226.2 337.5 573.9 1,739 104.7 888 86.2 653.3 6.4 1,141 598 1,510 12.5 273.6 286.1 150.3 9.7 446 12.5 331.0 343.5 211.1 11.0 566 12.5 379.0 391.5 424.2 14.1 830 15.0 610.8 625.7 396.1 16.1 1,038 15.0 729.1 744.1 594.1 16.1 1,354 15.0 866.7 881.7 611.9 16.1 1,510 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

July 29, 2011

Sadbhav Engineering | 1QFY2012 Result Update

Cash flow statement (Standalone)

Y/E March (` cr) Profit Before Tax Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2008 FY2009 75 14 127 6 24 (68) (39) (74) 6 (108) 90 77 6 0 161 (15) 25 10 95 16 105 19 (14) (19) (4) (23) 61 6 (18) 37 (0) 10 10 FY2010 98 23 155 17 44 (95) (72) (20) 17 (74) 213 6 (3) 204 35 10 45 FY2011 FY2012E FY2013E 176 27 (34) 20 56 161 (47) (182) 20 (209) 124 (28) 8 0 89 40 45 85 187 35 200 21 61 (61) (80) (99) 21 (157) 198 8 190 (28) 85 57 215 43 (85) 24 70 250 (105) (149) 24 (230) 18 8 10 29 57 86

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Sadbhav Engineering | 1QFY2012 Result Update

Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value DuPont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) W.cap cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 0.5 1.4 5.5 0.6 1.7 4.9 1.0 2.8 3.5 0.5 1.4 4.7 0.7 2.1 4.0 0.6 1.8 4.0 4.1 22 58 104 43 4.3 19 73 89 76 4.2 12 104 128 103 6.2 10 93 125 68 6.2 11 108 144 70 5.6 12 111 154 71 25.6 27.0 23.5 20.6 21.0 23.9 16.4 17.1 14.7 21.3 22.9 23.5 18.4 19.5 18.4 17.8 18.8 17.9 9.6 0.7 2.8 18.5 9.6 0.4 22.1 9.7 0.8 2.2 16.8 9.4 0.5 20.7 9.1 0.5 1.9 9.4 5.7 0.8 12.2 9.0 0.7 2.5 15.6 7.1 0.7 21.8 8.4 0.7 2.3 13.2 7.4 0.6 16.7 8.9 0.7 2.1 12.7 7.1 0.7 16.3 4.1 3.4 4.3 0.4 19.1 6.0 5.0 6.1 0.4 22.9 4.3 3.6 5.1 0.4 26.1 8.0 8.0 9.8 0.5 41.8 8.4 8.4 10.7 0.5 49.6 9.7 9.7 12.6 0.5 58.8 42.0 33.0 7.5 0.3 2.5 22.7 5.1 28.3 23.5 6.2 0.3 2.2 19.5 4.1 39.7 27.7 5.5 0.3 2.0 18.3 3.0 17.9 14.6 3.4 0.4 1.1 10.8 2.4 16.9 13.3 2.9 0.4 1.0 10.5 2.0 14.7 11.4 2.4 0.4 0.9 8.9 1.8 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

July 29, 2011

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Sadbhav Engineering | 1QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Sadbhav Engg No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

July 29, 2011

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