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Sadbhav Engineering Limited (SADBHAV) AI Stock Analysis

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IN:SADBHAV

Sadbhav Engineering Limited

(NSE:SADBHAV)

Select Model
Rating:45Neutral
Price Target:INR 7.00â–¼(-3.05% Downside)
Action:reiterated
Date:10/22/26

The score is held down primarily by balance-sheet stress (negative equity and very high debt) and a bearish technical setup (below key moving averages with negative MACD). The low P/E provides some support, but it is outweighed by leverage/refinancing risk and weak trend momentum.

Positive Factors
FY2026 Profitability RecoveryThe return to profitability and strong FY2026 gross and operating margins show that the business can generate attractive project economics under improved conditions. If maintained, this recovery could support internal funding and strengthen resilience, although consistency remains important.
Negative Factors
Negative Equity and Extreme LeverageNegative equity leaves the company with a very thin capital cushion, while very high debt increases refinancing exposure and financial obligations. This combination can restrict investment, weaken bargaining power with lenders, and make the business more vulnerable to execution setbacks.

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

-50%-40%-30%-20%-10%0%10%20%30%IN:SADBHAV-35.01%INDA-5.86%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
INR 1.29B
Dividend Yield
―
Average Volume (3M)
30.79K
Price to Earnings (P/E)
2.4
Beta (1Y)
1.65
Revenue Growth
-7.00%
EPS Growth
―
Country
India
Employees
128
Sector
General
Sector Strength
55
Industry
Engineering & Construction

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 infr...

Sadbhav Engineering Limited Financial Statement Overview

Summary

Despite a rebound to modest profitability in FY2026 and some strong free-cash-flow years, the balance sheet is the dominant risk: negative shareholders’ equity in FY2024–FY2026 and very high debt imply extreme leverage and elevated refinancing/financial flexibility risk.

Income Statement

38Negative

Balance Sheet

14Very Negative

Cash Flow

56Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue9.32B9.73B10.36B19.23B17.77B19.08B
Gross Profit5.38B5.26B4.17B4.79B5.78B3.64B
EBITDA7.47B7.32B4.92B-1.26B786.92M3.57B
Net Income514.79M263.13M-1.89B-6.30B-5.89B-7.24B
Balance Sheet
Total Assets54.92B58.60B66.76B70.49B98.24B108.87B
Cash, Cash Equivalents and Short-Term Investments1.30B1.24B24.34B548.77M25.36B1.58B
Total Debt30.34B32.64B37.78B37.35B47.75B57.61B
Total Liabilities53.90B58.69B68.83B71.64B94.89B98.25B
Stockholders Equity-677.18M-1.11B-2.41B-1.25B1.75B8.02B
Cash Flow
Free Cash Flow04.44B011.44B17.00B-30.95B
Operating Cash Flow05.16B664.37M11.54B17.66B-30.95B
Investing Cash Flow0-958.26M117.88M717.54M318.26M52.52B
Financing Cash Flow0-3.84B-763.86M-12.83B-18.48B-21.07B

Sadbhav Engineering Limited Technical Analysis

Technical Analysis SentimentNegative
Last Price7.22

Price Trends

50DMA7.25Negative
100DMA7.90Negative
200DMA8.30Negative

Market Momentum

MACD0.06Negative
RSI52.17Neutral
STOCH84.07Negative

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 7.22 is above the 20-day moving average (MA) of 6.91, below the 50-day MA of 7.25, and below the 200-day MA of 8.30, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 52.17 is Neutral, neither overbought nor oversold. The STOCH value of 84.07 is Negative, 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

IN:SADBHAV against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IN:PNCINFRAIN:PNCINFRA71OutperformINR 33.67B5.20―0.47%1.82%-21.49%
IN:ASHOKAIN:ASHOKA66NeutralINR 31.76B1.38――-23.07%63.76%
IN:DBLIN:DBL63NeutralINR 66.36B5.91―0.24%-11.40%51.54%
IN:KNRCONIN:KNRCON58NeutralINR 31.29B7.78―0.23%-37.51%-58.59%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
IN:NCCIN:NCC55NeutralINR 85.23B11.59―1.64%8.16%-8.15%
IN:SADBHAVIN:SADBHAV45NeutralINR 1.30B2.43――-7.00%―

* General Sector Average

Performance Comparison

-40%-20%0%20%IN:SADBHAVIN:ASHOKAIN:DBLIN:KNRCONIN:NCCIN:PNCINFRADec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
IN:SADBHAV and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
IN:SADBHAVSadbhav Engineering Limited7.22-4.18-36.67%
IN:ASHOKAAshoka Buildcon Limited111.86-76.84-40.72%
IN:DBLDilip Buildcon Ltd.409.00-46.72-10.25%
IN:KNRCONKNR Constructions Limited109.01-63.30-36.73%
IN:NCCNCC Limited134.50-47.00-25.89%
IN:PNCINFRAPNC Infratech Ltd127.90-137.75-51.85%

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 Bank, Stat...

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 loans. The...

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: Oct 22, 2026