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Sadbhav Engineering Limited
(SADBHAV)
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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)
Market Cap
₹1.36B
Dividend Yield0.73%
Average Volume (3M)35.63K
Price to Earnings (P/E)4.4
Beta (1Y)1.30
Revenue Growth-0.30%
EPS GrowthN/A
CountryIN
Employees128
SectorGeneral
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.74
Shares Outstanding171,570,800
10 Day Avg. Volume48,557
30 Day Avg. Volume35,630
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)-1.13
Price to Sales (P/S)0.13
P/FCF Ratio0.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
38
Negative
Balance Sheet
14
Very Negative
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.55B | 9.73B | 10.36B | 19.23B | 17.77B | 19.08B |
| Gross Profit | 5.72B | 5.26B | 4.17B | 4.79B | 5.78B | 3.64B |
| EBITDA | 7.97B | 7.32B | 4.92B | -1.26B | 786.92M | 3.57B |
| Net Income | 297.92M | 263.13M | -1.89B | -6.30B | -5.89B | -7.24B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 58.60B | 66.76B | 70.49B | 98.24B | 108.87B |
| Cash, Cash Equivalents and Short-Term Investments | 1.24B | 1.24B | 24.34B | 548.77M | 25.36B | 1.58B |
| Total Debt | 0.00 | 32.64B | 37.78B | 37.35B | 47.75B | 57.61B |
| Total Liabilities | 91.31M | 58.69B | 68.83B | 71.64B | 94.89B | 98.25B |
| Stockholders Equity | -91.31M | -1.11B | -2.41B | -1.25B | 1.75B | 8.02B |
Cash Flow | ||||||
| Free Cash Flow | 3.68B | 4.44B | 0.00 | 11.44B | 17.00B | -30.95B |
| Operating Cash Flow | 3.69B | 5.16B | 664.37M | 11.54B | 17.66B | -30.95B |
| Investing Cash Flow | -110.11M | -958.26M | 117.88M | 717.54M | 318.26M | 52.52B |
| Financing Cash Flow | -3.35B | -3.84B | -763.86M | -12.83B | -18.48B | -21.07B |
Sadbhav Engineering Limited Technical Analysis
Negative
7.86
Price Trends
8.38
Negative
8.78
Negative
8.98
Negative
Market Momentum
-0.17
Positive
38.04
Neutral
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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | ₹35.31B | 8.64 | ― | 0.21% | -37.51% | -58.59% | |
58 Neutral | ₹65.60B | 5.14 | ― | 0.25% | -18.82% | 46.79% | |
56 Neutral | ₹31.97B | 1.26 | ― | 0.65% | -24.59% | 39.70% | |
56 Neutral | ₹88.53B | 12.33 | ― | 1.60% | -1.81% | -12.78% | |
56 Neutral | ₹45.02B | 4.92 | ― | 0.43% | -6.48% | 9.02% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹1.36B | 4.41 | ― | 0.73% | -0.30% | ― |
* General Sector Average
IN:SADBHAV
Sadbhav Engineering Limited
7.63
-6.54
-46.15%
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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.