Sadbhav Engineering Ltd (SADBHAV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

HEC Infra Proj.

Niraj Cement

BCPL Railway

Tarmat

Sadbhav Engg.

Bharat Road

HVAX Technolog.

AVP Infracon

Winsol Engineers

Refex Renewables

Desco Infra.

Why is Sadbhav Engineering Ltd ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -15.39% and Operating profit at -34.74% over the last 5 years
The company has a negative book value of Rs 110.88 crore
The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Flat results in Mar 26

PAT(Q) At Rs -92.99 cr has Fallen at -63.1%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.48 times
NET SALES(Q) At Rs 270.94 cr has Grown at -6.50%

Risky - Negative Book Value

The company has a negative book value of Rs. -110.88 cr
Over the past year, while the stock has generated a return of -31.86%, its profits have risen by 85.2%
The stock is trading risky as compared to its average historical valuations

Below par performance in long term as well as near term

Along with generating -31.86% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sadbhav Engg. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sadbhav Engg.

-32.16%

-0.57

56.75%

Sensex

-8.2%

-0.63

13.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-15.39%

EBIT Growth (5y)

0.26%

EBIT to Interest (avg)

0.42

Debt to EBITDA (avg)

37.75

Net Debt to Equity (avg)

-28.32

Sales to Capital Employed (avg)

0.35

Tax Ratio

14.06%

Dividend Payout Ratio

Pledged Shares

19.69%

Institutional Holding

0.32%

ROCE (avg)

1.39%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-1.43

EV to EBIT

8.41

EV to EBITDA

6.21

EV to Capital Employed

1.09

EV to Sales

3.39

PEG Ratio

Dividend Yield

ROCE (Latest)

12.95%

ROE (Latest)

Negative BV

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

ROCE(HY)

Highest at 15.40%

EPS(Q)

Highest at Rs 4.73

-9What is not working for the Company

PAT(Q)

At Rs -92.99 cr has Fallen at -63.1%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.48 times

NET SALES(Q)

At Rs 270.94 cr has Grown at -6.50%

PBDIT(Q)

Lowest at Rs 71.33 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 26.33%

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Here's what is working for Sadbhav Engg.

Earnings per Share (EPS) - Quarterly

Highest at Rs 4.73

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Sadbhav Engg.

Profit After Tax (PAT) - Quarterly

At Rs -92.99 cr has Fallen at -63.1%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 270.94 cr has Grown at -6.50%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 71.33 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 26.33%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio- Half Yearly

Lowest at 3.48 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio