Stock Price Movement and Market Context
On 20 Jan 2026, Sadbhav Engineering Ltd (Stock ID: 577653) recorded its lowest price in the past year and all-time low at Rs.6.95. This represents a sharp decline from its 52-week high of Rs.22.56, a drop of approximately 69.2%. The stock has been on a losing streak for five consecutive trading sessions, shedding 22.35% over this period. Today’s performance saw a day change of -4.92%, underperforming the construction sector by 4.01%.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish sentiment. This contrasts with the broader market, where the Sensex, despite a negative close of 0.32% at 82,975.64 points, remains only 3.84% below its 52-week high of 86,159.02. However, the Sensex itself has been on a three-week losing streak, down 3.25% in that timeframe.
Financial Performance and Fundamental Concerns
Sadbhav Engineering’s financial indicators reveal several areas of concern. The company reported flat operating cash flow for the fiscal year, with the lowest operating cash flow recorded at Rs.290.23 crores. Net sales for the nine months ended December 2025 stood at Rs.761.65 crores, reflecting a decline of 22.23% compared to the previous period. Correspondingly, the company posted a net loss (PAT) of Rs.-43.54 crores for the same period, also down by 22.23%.
Over the last five years, the company’s net sales have contracted at an annual rate of -14.83%, while operating profit has remained stagnant at 0%. This lack of growth is compounded by a negative book value, indicating that the company’s liabilities exceed its assets. The average debt-to-equity ratio stands at zero, but this is overshadowed by the company’s negative net worth and reported losses, which raise questions about its long-term financial sustainability.
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Shareholding and Valuation Risks
Another factor contributing to the stock’s decline is the high proportion of promoter shares pledged, which currently stands at 42.67%. This elevated level of pledged shares can exert additional downward pressure on the stock price, especially in volatile or falling markets.
From a valuation perspective, Sadbhav Engineering is trading at levels considered risky relative to its historical averages. Despite the stock generating a negative return of -68.10% over the past year, the company’s profits have paradoxically increased by 84.8% during the same period. This divergence highlights the market’s cautious stance given the company’s broader financial and structural challenges.
Comparative Performance and Market Standing
Sadbhav Engineering’s performance has lagged behind key benchmarks over multiple time horizons. The stock’s one-year return of -68.10% starkly contrasts with the Sensex’s positive 7.65% return. Additionally, the company has underperformed the BSE500 index over the last three years, one year, and three months, underscoring persistent underperformance relative to the broader market and its peers in the construction sector.
The company’s Mojo Score currently stands at 12.0, with a Mojo Grade of Strong Sell, upgraded from a previous Sell rating on 12 Aug 2024. The Market Cap Grade is rated at 4, reflecting the company’s diminished market capitalisation and investor sentiment.
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Summary of Key Metrics
To summarise, Sadbhav Engineering Ltd’s stock has reached a critical low point at Rs.6.95, reflecting a combination of subdued sales growth, negative profitability, and structural financial weaknesses. The company’s negative book value and high promoter share pledging add to the risk profile. Its underperformance relative to the Sensex and sector peers further highlights the challenges faced.
While the broader market shows some resilience, Sadbhav Engineering’s share price continues to reflect the cumulative impact of these factors, as evidenced by its trading below all major moving averages and a sustained downtrend over recent weeks.
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