Sanghvi Movers
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Sanghvi Movers Limited (SML) is strategically evolving from a crane rental company to a diversified player in Project EPC and international markets, driven by a significant ₹474 crore capex program and a ₹225 crore investment in global expansion. Management's focus on disciplined capital allocation and operational excellence is crucial as the company navigates execution risks from geopolitical volatility and rising operational costs. Vista's financial outlook reflects stable revenue growth and margins, supported by strong demand in India's infrastructure and energy sectors, alongside a robust order book for FY27. The company's transition into a global capital allocator positions it well to capitalize on India's investment-led growth cycle and infrastructure modernization in Saudi Arabia. However, potential margin compression from one-time incentives and credit provisions may pose short-term challenges. Over the next 12-24 months, key opportunities include leveraging digital transformation and expanding into the Middle East, while watchpoints include geopolitical tensions and supply chain disruptions that could impact execution. Overall, SML's strategic initiatives align with Vista's positive outlook, projecting a 38% expected upside with a 12-month target of ₹633.34
Why We Like This Stock
- Strategic transformation into a multi-business entity enhances growth potential and resilience
- Strong demand in India's infrastructure and energy sectors supports stable revenue growth
- Significant investments in global expansion and digital transformation are expected to drive operational efficiency
Things To Watch Out For
- Execution risks from geopolitical volatility and potential supply chain disruptions could impact performance
- Short-term margin compression due to one-time incentives may challenge profitability
- Dependence on successful international expansion in a competitive landscape poses risks
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 456 | 782 | 1,070 | 1,283 | 1,643 |
| Profit Before Tax (Cr.) | 130 | 183 | 261 | 322 | 410 |
| PBT Margin | 28.6% | 23.4% | 24.4% | 25.1% | 24.9% |
| Net Profit (Cr.) | 127 | 140 | 197 | 245 | 311 |
| Earnings Per Share | 14.7 | 16.2 | 22.8 | 28.3 | 35.9 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Sanghvi Movers Limited, together with its subsidiaries, operates as a crane rental company in India. It operates through Crane Hiring and Ancillary Services; Wind EPC; and Project EPC segment. The Crane Hiring and Other Ancillary Services segment includes crane rental services, including mobilization and demobilization. The Wind EPC segment includes logistics, intercarting, installation, and commissioning of wind turbine components. The Project EPC segment provides complete lifting and rigging for all heavy lifts, foundation preparation alignment, execution and planning of completion of heavy lifts. It also operates a fleet of medium to large-size hydraulic truck mounted telescopic and lattice boom cranes, as well as hydraulic and crawler cranes. In addition, the company offers equipment, including crawler mounted cranes with lattice boom and truck mounted cranes with telescopic boom. Further, it generates wind and solar power. The company serves construction, power, oil and gas, heavy engineering, infrastructure, renewable wind energy, steel, cement, fertilizers, petrochemical and refinery, and metro railway industries. Sanghvi Movers Limited was incorporated in 1989 and is headquartered in Pune, India.