Sadbhav Engineering Limited (SADBHAV) AI Stock Analysis

• Market Cap: ₹1.08B
• Dividend Yield: N/A
• Average Volume (3M): 39.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 217
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.33
• Shares Outstanding: 171,570,800
• 10 Day Avg. Volume: 46,217
• 30 Day Avg. Volume: 39,137
• PEG Ratio: 0.01
• Price to Book (P/B): -0.76
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹6.00 ▼(-44.65% Downside)

Overall score is driven down primarily by weak financial performance—high leverage with negative equity, persistent losses, and volatile/weakening cash generation. Technicals add further pressure with a strong downtrend and negative momentum. Valuation provides limited offset because the negative P/E reflects ongoing losses and dividend support is not shown in the provided data.

Positive Factors

Improved project-level margins

Sustained gross and operating margins near 40%/35% indicate strong project economics and pricing power at the contract level. If maintained, these margins can support recovery, cover fixed costs, and provide a structural buffer against input-cost rises, aiding medium-term profitability restoration.

Sizable asset base

A sizable asset base supports contract execution capacity and can be used as collateral for refinancing or working capital facilities. Over the medium term this tangible capacity preserves revenue-generating ability and provides negotiating leverage with creditors despite near-term balance-sheet stress.

Proven cash generation in FY2024

Demonstrated strong OCF and FCF in FY2024 shows the business can convert revenue to cash when execution and working-capital are managed. This establishes a realistic path to re-stabilize cash generation and deleverage if management restores prior execution levels over the next several quarters.

Negative Factors

High leverage and negative equity

Very high debt and negative shareholder equity materially reduce financial flexibility and raise refinancing, covenant, and default risk. This structural capital weakness constrains bidding capacity, forces reliance on external financing, and elevates probability of asset sales or restructuring over the medium term.

Persistent net losses and volatility

Ongoing net losses and historic volatility erode retained capital and impair ability to sustainably fund operations. Even with improved gross margins, continued bottom-line losses limit reinvestment, hurt creditor and investor confidence, and make sustained recovery uncertain over several quarters.

Weak and volatile cash flow conversion

Sharp declines and swings in operating cash flow and nil free cash flow reduce capacity to service debt, fund capex, or build liquidity. Persistent cash volatility heightens working-capital risk, increases refinancing needs, and limits the company's ability to invest in backlog or execute a durable turnaround.

Sadbhav Engineering Limited Business Overview & Revenue Model

Company Description

Sadbhav Engineering Limited develops infrastructure projects primarily in India. It undertakes infrastructure projects in the areas of canals, irrigation projects, roads, bridges, and dams that include civil, electrical and mechanical contractor, designer and engineers, structural contractor, and earthwork contractor for repairing, reconstruction, renovation, demolition, and construction. The company also undertakes roads and highway development projects on BOT, DBFOMT, or DBFOT basis, as well as provides engineering, procurement, and construction services for transportation, irrigation, and mining sectors. In addition, it engages in mining activities on contract basis; and energy generation through wind power project. The company was founded in 1988 and is based in Ahmedabad, India.

How the Company Makes Money

Sadbhav Engineering Limited Financial Statement Overview

Summary

Financial profile is high risk: revenue fell ~15% in FY2025 and net losses persisted (net margin ~-18%) despite improved gross/operating margins. Balance sheet is the largest concern with very high debt (~37.8B) and negative shareholder equity (FY2025 and FY2024). Cash flow is volatile, with operating cash flow dropping sharply in FY2025 (~0.66B) and free cash flow at zero.

Income Statement

Profitability is weak and inconsistent. FY2025 revenue fell ~15%, and while gross and operating profitability improved materially (gross margin ~40% and operating margin ~35%), the company still reported a sizable net loss (net margin ~-18%). The prior years show repeated large losses and volatile operating results, which limits confidence in earnings quality and sustainability.

Balance Sheet

Leverage and capital structure are a major concern. Total debt remains very high (about 37.8B in FY2025), while shareholder equity is negative in FY2025 (and also negative in FY2024), indicating balance-sheet stress and reduced financial flexibility. Although total assets are sizable, the negative equity position makes the debt burden riskier and increases vulnerability to downturns or refinancing pressure.

Cash Flow

Cash generation is volatile. FY2024 showed very strong operating and free cash flow (free cash flow roughly matched net loss in magnitude), but FY2025 operating cash flow dropped sharply to ~0.66B and free cash flow was reported at zero, suggesting weaker cash conversion and/or higher cash needs. Earlier years also show large swings, including a deeply negative operating cash flow in FY2022, which raises execution and working-capital risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.58B	10.36B	19.23B	17.77B	19.08B	22.34B
Gross Profit	5.87B	4.17B	4.79B	5.78B	3.64B	8.41B
EBITDA	5.49B	4.92B	-1.26B	786.92M	3.57B	9.08B
Net Income	-1.42B	-1.89B	-6.30B	-5.89B	-7.24B	-1.55B
Balance Sheet
Total Assets	0.00	66.76B	70.49B	98.24B	108.87B	124.84B
Cash, Cash Equivalents and Short-Term Investments	637.99M	24.34B	548.77M	25.36B	1.58B	1.17B
Total Debt	0.00	37.78B	37.35B	47.75B	57.61B	70.29B
Total Liabilities	2.07B	68.83B	71.64B	94.89B	98.25B	107.00B
Stockholders Equity	-2.07B	-2.41B	-1.25B	1.75B	8.02B	14.45B
Cash Flow
Free Cash Flow	0.00	0.00	11.44B	17.00B	-30.95B	11.77B
Operating Cash Flow	0.00	664.37M	11.54B	17.66B	-30.95B	11.84B
Investing Cash Flow	0.00	117.88M	717.54M	318.26M	52.52B	1.18B
Financing Cash Flow	0.00	-763.86M	-12.83B	-18.48B	-21.07B	-12.88B

Sadbhav Engineering Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPPINFRA	60 Neutral	₹4.53B	7.36	―	0.47%	-7.32%	-26.92%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
BRNL	50 Neutral	₹1.76B	0.96	―	―	-57.13%	―
SADBHIN	44 Neutral	₹1.20B	-1.85	―	―	4.63%	67.17%
SADBHAV	41 Neutral	₹1.08B	-0.66	―	―	―	―
SICALLOG	39 Underperform	₹5.76B	-402.36	―	―	76.34%	94.50%

Sadbhav Engineering Limited Corporate Events

Sadbhav Engineering Announces Debt Resolution Measures

Sadbhav Engineering Limited’s Board of Directors has approved measures under a proposed debt resolution plan to address its financial obligations. These measures include executing a Master Restructuring Agreement and issuing rupee-denominated debentures worth Rs. 1,000 crores via private placement, aiming to restructure its debt while stabilizing operations and bolstering its market position.

Sadbhav Engineering Resolves Board Compliance Issues

Sadbhav Engineering Limited has resolved non-compliance issues regarding the composition of its Board of Directors under SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015. Following the appointment of Mr. Siddharth Vyas as a Non-Executive Director, the company has ensured compliance and approved the payment of fines levied by the National Stock Exchange of India Ltd. and BSE Ltd., signaling its adherence to regulatory standards and commitment to corporate governance.

Sadbhav Engineering Announces Board Resignation

Sadbhav Engineering Limited announced the resignation of Mr. Jatin Thakkar as a Non-Executive Director, effective from November 12, 2025. Mr. Thakkar resigned due to personal reasons and to explore other opportunities. This change in the board is part of the company’s ongoing adjustments and may impact its governance structure, though no immediate operational changes were indicated.