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Sadbhav Engineering Limited (IN:SADBHAV)
:SADBHAV
India Market
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Sadbhav Engineering Limited (SADBHAV) AI Stock Analysis

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IN:SADBHAV

Sadbhav Engineering Limited

(SADBHAV)

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Neutral 55 (OpenAI - Gpt-5.6Sol)
Rating:55Neutral
Price Target:
₹8.00
▲(1.78% Upside)
Action:Reiterated
Date:07/30/26
The score is held back primarily by balance-sheet risk (negative equity and very high leverage) despite improving profitability and generally supportive free-cash-flow years. Technically, the stock is trading above key moving averages, and valuation looks inexpensive on P/E, but these positives are secondary to the capital-structure risk.
Positive Factors
FY2026 profitability recovery
The return to profitability in FY2026 indicates improved project economics after several loss-making years. Strong gross and EBIT/EBITDA margins could support earnings recovery if execution remains disciplined, although the durability of this improvement depends on stabilizing revenue and maintaining cost control.
Negative Factors
Negative equity and extreme leverage
Negative equity leaves the company with a thin or absent capital cushion, while very high debt increases refinancing risk and interest-related pressure. This weak balance-sheet structure limits financial flexibility and may restrict the ability to fund projects or absorb execution setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
FY2026 profitability recovery
The return to profitability in FY2026 indicates improved project economics after several loss-making years. Strong gross and EBIT/EBITDA margins could support earnings recovery if execution remains disciplined, although the durability of this improvement depends on stabilizing revenue and maintaining cost control.
Read all positive factors

Sadbhav Engineering Limited (SADBHAV) vs. iShares MSCI India ETF (INDA)

Sadbhav Engineering Limited Business Overview & Revenue Model

Company Description
Sadbhav Engineering Limited is an Indian firm specializing in the development of various infrastructure initiatives across the nation. Its core operations encompass the construction, repair, reconstruction, renovation, and demolition of critical i...
How the Company Makes Money
Sadbhav Engineering Limited primarily makes money by executing infrastructure construction contracts, with revenue recognized as it delivers work on awarded projects. Its key revenue streams typically include: (1) EPC and construction contracting ...

Sadbhav Engineering Limited Financial Statement Overview

Summary
Income statement shows a sharp swing from losses to modest profitability in FY2026 and cash flow has been positive in multiple years, but the balance sheet is a major constraint: negative equity in FY2024–FY2026 and very high debt imply elevated refinancing risk and limited financial flexibility.
Income Statement
38
Negative
Balance Sheet
14
Very Negative
Cash Flow
56
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue9.55B9.73B10.36B19.23B17.77B19.08B
Gross Profit5.72B5.26B4.17B4.79B5.78B3.64B
EBITDA7.97B7.32B4.92B-1.26B786.92M3.57B
Net Income297.92M263.13M-1.89B-6.30B-5.89B-7.24B
Balance Sheet
Total Assets0.0058.60B66.76B70.49B98.24B108.87B
Cash, Cash Equivalents and Short-Term Investments1.24B1.24B24.34B548.77M25.36B1.58B
Total Debt0.0032.64B37.78B37.35B47.75B57.61B
Total Liabilities91.31M58.69B68.83B71.64B94.89B98.25B
Stockholders Equity-91.31M-1.11B-2.41B-1.25B1.75B8.02B
Cash Flow
Free Cash Flow3.68B4.44B0.0011.44B17.00B-30.95B
Operating Cash Flow3.69B5.16B664.37M11.54B17.66B-30.95B
Investing Cash Flow-110.11M-958.26M117.88M717.54M318.26M52.52B
Financing Cash Flow-3.35B-3.84B-763.86M-12.83B-18.48B-21.07B

Sadbhav Engineering Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.86
Price Trends
50DMA
8.38
Negative
100DMA
8.78
Negative
200DMA
8.98
Negative
Market Momentum
MACD
-0.17
Positive
RSI
38.04
Neutral
STOCH
21.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SADBHAV, the sentiment is Negative. The current price of 7.86 is below the 20-day moving average (MA) of 8.13, below the 50-day MA of 8.38, and below the 200-day MA of 8.98, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 38.04 is Neutral, neither overbought nor oversold. The STOCH value of 21.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SADBHAV.

Sadbhav Engineering Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
₹35.31B8.640.21%-37.51%-58.59%
58
Neutral
₹65.60B5.140.25%-18.82%46.79%
56
Neutral
₹31.97B1.260.65%-24.59%39.70%
56
Neutral
₹88.53B12.331.60%-1.81%-12.78%
56
Neutral
₹45.02B4.920.43%-6.48%9.02%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₹1.36B4.410.73%-0.30%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SADBHAV
Sadbhav Engineering Limited
7.63
-6.54
-46.15%
IN:ASHOKA
Ashoka Buildcon Limited
111.40
-80.45
-41.93%
IN:DBL
Dilip Buildcon Ltd.
398.00
-167.50
-29.62%
IN:KNRCON
KNR Constructions Limited
121.30
-72.96
-37.56%
IN:NCC
NCC Limited
137.30
-75.46
-35.47%
IN:PNCINFRA
PNC Infratech Ltd
140.40
-163.45
-53.79%

Sadbhav Engineering Limited Corporate Events

Sadbhav Engineering Clears Major Equity Issuance to Lenders and Promoters Under Resolution Plan
Sep 1, 2026
Sadbhav Engineering’s board has approved the issuance of up to 14,47,94,474 equity shares on a preferential basis to a consortium of lender banks, including Axis Bank, Bank of India, ICICI Bank, IDBI Bank, Karur Vysya Bank, Punjab National B...
Sadbhav Engineering Clears Preferential Share Issue as Part of Lender-Backed Restructuring Plan
Sep 1, 2026
Sadbhav Engineering’s board has approved a preferential issuance of up to 14.48 crore equity shares to a consortium of lender banks and up to 7.56 crore shares to promoter group member Shashin Patel through conversion of existing unsecured l...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2026