ScoreWhy is Sadbhav Engineering Ltd ?
1
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
2
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%
3
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 -65.17%, its profits have risen by 84.8%
4
42.67% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
5
Below par performance in long term as well as near term
- Along with generating -65.17% 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 ReportHow 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.
-28.88%
-1.36
48.03%
Sensex
-4.3%
0.43
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-15.11%
EBIT Growth (5y)
1.94%
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
0
Pledged Shares
42.67%
Institutional Holding
0.35%
ROCE (avg)
0.61%
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
35
Price to Book Value
-0.61
EV to EBIT
8.93
EV to EBITDA
6.79
EV to Capital Employed
1.11
EV to Sales
3.78
PEG Ratio
0.11
Dividend Yield
NA
ROCE (Latest)
11.25%
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
ROCE(HY)
Highest at 15.34%
PBDIT(Q)
Highest at Rs 165.92 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 72.16%
PBT LESS OI(Q)
Highest at Rs 21.50 cr.
PAT(Q)
Highest at Rs 55.89 cr.
-5What is not working for the Company
INTEREST(Latest six months)
At Rs 250.92 cr has Grown at 25.98%
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.80 times
NON-OPERATING INCOME(Q)
is 67.98 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Sadbhav Engg.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 21.50 cr has Grown at 146.01%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 55.89 cr has Grown at 306.5%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 165.92 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 72.16%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 21.50 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 55.89 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Sadbhav Engg.
Interest - Latest six months
At Rs 250.92 cr has Grown at 25.98%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
is 67.98 % 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 periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
