Sadbhav Infrastructure Project Ltd and other Information  

Yesterday, I took some shares of Sadbhav Infra Project Ltd (Rs.7.60) and also sent this message on Facebook and Twitter (X). The stock initially hit the Upper Circuit, only to open few minutes later, when I believe most of my well-wishers could enter. 

Brief description: Roads are the backbone of any economy, and India's rapid growth has heightened the demand for a robust road infrastructure. While public funds alone cannot meet the needs for upgrading National Highways, the government of India has adopted a policy to involve the private sector through Build-Operate-Transfer (BOT) projects. 

Sadbhav Infrastructure Project Limited (SIPL), a subsidiary of Sadbhav Engineering Limited (SEL), was established in 2007 as an asset-holding company for road and infrastructure BOT projects. 

SIPL focuses on the development, operation, and maintenance of road infrastructure, aiming to build a sizable asset base in the road BOT sector. With less competition in the BOT Roads and Highway sector, SIPL is in a strong position to win projects with desired returns in future.

Currently, SIPL manages 10 BOT projects, covering a total of 2595.92 lane kilometers. Of these, six are operational, one is partially operational, and three are under development.

Financials: Net Sales of the company came at Rs.174.33 crore in March 2024 up 11.03% from Rs.157.01 crore in March 2023. 

Quarterly Net Loss was at Rs.95.40 crore in March 2024 down 127.89% from Rs.342.06 crore in March 2023, which is very encouraging.

However, the EBITDA stood at Rs.81.52 crore in March 2024 down 44.04% from Rs.145.67 crore in March 2023. I'm looking at a target of Rs.10+ for the scrip.

#In May, 2024, there was a news report in The Times of India, that: "Municipal Corporation of Delhi (MCD) has issued a public notice to auction on May 7 four confiscated properties, worth around Rs.30 crore, of former toll contractor MEP Infrastructure Developers Ltd (Rs.8.43) in Mumbai". 

There was another report on the same page saying: "In March, MCD had issued a public notice for the attachment of over Rs 3,900-crore assets and properties belonging to the company for non-payment of toll dues.".

Now there are few points here I would like to mention:

💢There are a whooping 31 subsidiary companies of MEP Infrastructure Ltd (Rs.8.45). I have reports that it's tool tax collections are going on smoothly at Airoli (New Bombay) and Dahisar (Bombay) tool Nakas (plazas).  

💢The company has more than 17+ years of experience in Toll Collection in 15 states in India with 3000+, workforce.

Brief description: Maintenance of, and collection of toll at, the five Mumbai Entry Points along with 27 flyovers and certain allied structures on the Sion–Panvel Highway, the Western Express Highway corridor, the Eastern Express Highway corridor, the Lal Bahadur Shashtri Marg corridor and the Airoli Bridge corridor. Collection of toll at five entry points into Mumbai consisting of five toll plazas at Airoli, Vashi, Dahisar, Mulund on Lal Bahadur Shastri Marg and Mulund on Eastern Express Highway.

Period of contract: 20.11.10 to 19.11.26 (means upto November, 2026).

The company is currently going through Debt restructuring and hence we need not have to worry much.

#Devyani International Limited, a quick service restaurant (QSR) operator, had recently released its financial results for the quarter ending June 30, 2024. The company, which operates KFC and Pizza Hut outlets in India, reported a 44.3% year-on-year (YoY) increase in revenue, reaching ₹1,221.9 crore in the June quarter, up from ₹846.6 crore in the same period last year.

Revenue in the first quarter also grew sequentially by 16.7%, rising from ₹1,047.1 crore in the fourth quarter. KFC India contributed ₹555 crore, Pizza Hut India brought in ₹182 crore, and Costa Coffee added ₹45 crore to the total.

Devyani International Limited posted a net profit of ₹22.43 crore in the June quarter, a significant improvement from the loss of ₹1.59 crore recorded in the previous year. This also marks a strong sequential recovery, following a loss of ₹48.95 crore in the last quarter.

The season of this sector will kickstart with Ganpati Festival in Mumbai and elsewhere. The Brokerage House Nuvama has given a target of Rs.208 for the scrip.

#The shares of P C Jewelers Ltd (Rs.95) hit another Upper Circuit and Buyer Freeze. We can look for target of Rs.97/99, in the short term. The Jewelry stocks have been rising due to the fall in gold prices.

The shares of the Financial Services Firm BLB Ltd (Rs.17.81) is trading near the 52 - week low price. I am expecting a satisfactory June, 2024 quarter results. The targets for the scrip till Durga Puja are Rs.27 and Rs.31.

Unfortunately, the stock is languishing in the T - group since a long time, even though there is hardly any activity in the counter. The SEBI should explain the reasons for executing such a behaviour with certain scrips listed in the BSE/NSE. 

By the way, the perfomance of the surveillance department of the BSE/NSE has been going from bad to worse. The NDA government should clarify the causes for such absymal functioning of the two leading domestic bourses.