On 20 Nov 2025, Sadbhav Engineering’s share price closed at Rs.10.66, down by 2.53% on the day. This marks the fourth consecutive day of losses, during which the stock has returned -5.68%. The decline contrasts with the broader market, where the Sensex opened higher at 85,470.92 points, gaining 0.33% initially and trading near a 52-week high of 85,296.64 points by midday. The Sensex’s positive momentum was supported by mega-cap stocks and bullish moving averages, with the 50-day moving average positioned above the 200-day moving average, signalling overall market strength.
In contrast, Sadbhav Engineering is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained selling pressure and a lack of short- to long-term price support. The stock’s performance over the past year has been notably weak, with a return of -61.02%, while the Sensex has recorded a gain of 9.93% over the same period. The 52-week high for Sadbhav Engineering was Rs.32.74, highlighting the extent of the recent decline.
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Sadbhav Engineering operates within the construction industry, a sector that has seen mixed performance in recent times. Despite the sector’s overall resilience, Sadbhav’s stock has lagged behind, underperforming its sector by 2.69% on the day of the new low. The company’s financial metrics reveal several areas of concern that have contributed to the stock’s subdued performance.
One of the key issues is the company’s negative book value, which points to a weak long-term fundamental position. Over the last five years, Sadbhav Engineering’s net sales have declined at an annual rate of 14.83%, while operating profit has contracted by 34.74% annually. These figures indicate challenges in sustaining growth and profitability over an extended period.
Additionally, the company carries a high debt burden, with an average debt-to-equity ratio of 5.52 times. This level of leverage increases financial risk and may constrain the company’s ability to invest in new projects or manage downturns effectively. The company has also reported losses and a negative net worth, which raises questions about its capacity to maintain operations without fresh capital infusion or a return to profitability.
Recent financial results further illustrate the company’s current position. For the nine months ending September 2025, net sales stood at Rs.761.65 crores, reflecting a decline of 22.23% compared to the previous period. The profit after tax (PAT) for the same period was negative Rs.43.54 crores, also showing a decline of 22.23%. Operating cash flow for the year was recorded at Rs.290.23 crores, the lowest level reported, signalling potential liquidity constraints.
Promoter shareholding also presents a factor influencing the stock’s performance. Approximately 42.67% of promoter shares are pledged, which can exert additional downward pressure on the stock price during market declines. This high level of pledged shares often raises concerns about the company’s financial stability and the potential for forced selling in adverse market conditions.
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Over the longer term, Sadbhav Engineering’s stock has underperformed not only the Sensex but also the BSE500 index across multiple time frames including the last three years, one year, and three months. This consistent underperformance reflects the company’s challenges in regaining investor confidence and market share within the construction sector.
While the broader market environment remains positive, with the Sensex reaching new highs and supported by strong technical indicators, Sadbhav Engineering’s stock continues to face headwinds. The combination of declining sales, losses, high leverage, and significant promoter share pledging contributes to the stock’s current valuation pressures and its recent fall to the 52-week low.
Investors analysing Sadbhav Engineering’s recent price action and financial disclosures will note the divergence between the company’s performance and the overall market trend. The stock’s position below all major moving averages and its sustained negative returns over the past year highlight the challenges faced by the company in reversing its downtrend.
In summary, Sadbhav Engineering’s fall to Rs.10.66 marks a critical point in its share price trajectory, reflecting a combination of financial strain and market dynamics. The stock’s performance contrasts sharply with the broader market’s upward momentum, underscoring the importance of closely monitoring the company’s financial developments and market conditions going forward.
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