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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Navkar Urban.

Bharat Road

Sadbhav Engg.

SAB Industries

Udayshivakumar

Chavda Infra Ltd

Kay Cee

Winsol Engineers

Mayasheel Vent.

Desco Infra.

Modulex Const.

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 -14.83% and Operating profit at -34.74% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 5.52 times
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 Sep 25

OPERATING CF(Y) Lowest at Rs 290.23 Cr
NET SALES(9M) At Rs 761.65 cr has Grown at -22.23%
PAT(9M) At Rs -43.54 cr has Grown at -22.23%

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -64.55%, its profits have risen by 84.8%

42.67% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Below par performance in long term as well as near term

Along with generating -64.55% 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.

-64.99%

-1.24

52.42%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-14.83%

EBIT Growth (5y)

-1.66%

EBIT to Interest (avg)

0.42

Debt to EBITDA (avg)

38.16

Net Debt to Equity (avg)

-16.16

Sales to Capital Employed (avg)

0.35

Tax Ratio

14.06%

Dividend Payout Ratio

Pledged Shares

42.67%

Institutional Holding

0.51%

ROCE (avg)

0.61%

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

-0.81

EV to EBIT

9.95

EV to EBITDA

7.41

EV to Capital Employed

1.12

EV to Sales

3.78

PEG Ratio

Dividend Yield

ROCE (Latest)

11.25%

ROE (Latest)

Negative BV

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

13What is working for the Company

PAT(Q)

At Rs 1.80 cr has Grown at 105.3%

ROCE(HY)

Highest at 15.34%

NET SALES(Q)

At Rs 249.89 cr has Grown at 21.39%

PBDIT(Q)

Highest at Rs 147.29 cr.

-15What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 290.23 Cr

NET SALES(9M)

At Rs 761.65 cr has Grown at -22.23%

PAT(9M)

At Rs -43.54 cr has Grown at -22.23%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.80 times

INTEREST(Q)

Highest at Rs 140.44 cr

NON-OPERATING INCOME(Q)

is 184.60 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Sadbhav Engg.

Profit After Tax (PAT) - Quarterly

At Rs 1.80 cr has Grown at 105.3%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 249.89 cr has Grown at 21.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 147.29 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Here's what is not working for Sadbhav Engg.

Operating Cash Flow - Annually

Lowest at Rs 290.23 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Interest - Quarterly

At Rs 140.44 cr has Grown at 49.79%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Interest - Quarterly

Highest at Rs 140.44 cr

in the last five quarters and Increased by 49.79 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 184.60 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debtors Turnover Ratio- Half Yearly

Lowest at 4.80 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 55.49 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income