Sadbhav Engineering (SEL), a mid-sized player in the Infrastructure space, is becoming a player to reckon with on account of moving up the value chain, from being a sub-contractor to an asset owner. Notably, SEL has also acquired mines in Mozambique to ride the
current boom in the Mining segment. However, we have currently not accorded any value to it. But, we believe that going ahead, this business will add substantial value to SEL. We have valued SEL's core Construction business at 10x FY2010E EPS of Rs71.6. As per our
DCF methodology, we have valued SEL’s BOT business at Rs320 per share. We Intiate Coverage on the stock, with a Buy recommendation and SOTP Target Price of Rs1,036.

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