A hefty order book would have normally brought cheers for investors in infrastructure firms. Increase in net working capital days from 125 in FY18 to 138 in FY19 shows strained cash flows. Also, some of the HAM projects under execution aided profitability, as they bring in better margins compared to other project types. Hence, investor interest in the Sadbhav stock will hinge upon a pickup in revenue growth from the existing order book. Note, that in a recent analysts’ call, the management refrained from giving the customary revenue growth guidance for FY20, due to delays in “appointed dates".

Source: Mint June 10, 2019 19:18 UTC