Sadbhav Infrastructure Project Ltd. (SADBHIN) AI Stock Analysis

• Market Cap: ₹1.07B
• Dividend Yield: N/A
• Average Volume (3M): 49.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 4.63%
• EPS Growth: 67.17%
• Country: IN
• Employees: 53
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): -3.10
• Shares Outstanding: 352,225,220
• 10 Day Avg. Volume: 30,704
• 30 Day Avg. Volume: 49,694
• PEG Ratio: 0.02
• Price to Book (P/B): -0.29
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 0.86
• 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: 43 Neutral
• Price Target: ₹3.00 ▼(-19.57% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is primarily weighed down by weak financial performance (declining revenue, ongoing losses, and negative equity) and bearish technicals (below key moving averages with a negative MACD). Valuation offers limited support because the negative P/E reflects losses and there is no dividend yield data.

Positive Factors

Concession-based business model

Sadbhav’s PPP concession model creates long-duration contractual links to cash flows (tolls, annuities, O&M) and splits build/operate risk across project SPVs. That structure supports more predictable, contract-backed revenue streams over multi-year horizons and reduces pure-cycle exposure for core assets.

Improved gross margins

An improving gross margin suggests better project execution, tighter cost control, or a higher mix of annuity/operational revenue versus low-margin construction. Sustained margin improvement can enhance operating leverage and improve resilience when converting projects from build to operate phases.

Recent positive free cash flow

Move to positive free cash flow provides tangible liquidity relief and shows ability to generate cash after capex. For infrastructure firms, positive FCF enables servicing project-level debt, funding O&M, and selectively supporting new bids without immediate external capital, improving medium-term stability.

Negative Factors

Negative shareholder equity

Negative equity indicates liabilities exceed assets and signals prior losses or write-downs. It constrains corporate flexibility, weakens creditworthiness, can trigger covenant or refinancing risk, and limits capacity to raise low-cost capital—undermining long-term ability to fund and scale concession investments.

Persistent net losses

Ongoing net losses erode retained capital and limit reinvestment capacity. Over time, persistent losses force reliance on external financing or asset disposals, increase funding costs, and can impair partner or bidder credibility on future PPP contracts and large infrastructure tenders.

Erratic operating cash flow

Volatile operating cash flow complicates debt servicing and working capital across long-dated projects. For concession operators, predictability of collections is critical; erratic OCF raises refinancing and liquidity risk, making sustaining operations and meeting scheduled capex or maintenance commitments harder.

Sadbhav Infrastructure Project Ltd. Business Overview & Revenue Model

Company Description

Sadbhav Infrastructure Project Limited engages in the development, construction, operation, and maintenance of infrastructure projects in India. The company develops highways and roads on a build, operate, and transfer basis. It also provides related consulting and advisory services. The company was incorporated in 2007 and is based in Ahmedabad, India. Sadbhav Infrastructure Project Limited is a subsidiary of Sadbhav Engineering Limited.

How the Company Makes Money

SADBHIN’s earnings are primarily linked to monetizing infrastructure concession projects. Key revenue streams typically include (i) collections from operating road assets under concession, such as toll revenues where the concession structure allows tolling, and/or (ii) annuity payments from government authorities where the concession is annuity-based, and (iii) receipts tied to construction/implementation of the project during the build phase (often through engineering, procurement and construction work executed via contractors), with subsequent operations and maintenance (O&M) income during the operating phase. Cash flows may also be influenced by project-level financing structures (debt/interest and repayment schedules) and any proceeds from divestment/monetization of project stakes or assets, if undertaken. Specific project mix, exact revenue split (toll vs annuity vs construction vs O&M), named counterparties/authorities, and material partnerships are not available in the provided prompt and are therefore null.

Sadbhav Infrastructure Project Ltd. Financial Statement Overview

Summary

Weak fundamentals driven by declining revenue, persistent net losses, and a distressed balance sheet with negative equity. Some support comes from improved gross margin and better recent free cash flow, but overall financial health remains precarious.

Income Statement

The company's income statement reflects significant challenges, with declining revenue from 2020 to 2025 and persistent negative net income. Gross profit margin has improved in recent years, suggesting some efficiency gains, but the net loss trend is concerning. The EBIT and EBITDA margins show mixed results, indicating inconsistent operational performance.

Balance Sheet

The balance sheet is distressing with negative stockholders' equity, indicating financial instability. The debt-to-equity ratio cannot be calculated meaningfully due to negative equity, implying high leverage risk. While total assets have decreased, the liabilities remain high, contributing to the weak equity position.

Cash Flow

Cash flow statements show some improvement in free cash flow in recent years, but the operating cash flow has been erratic. The positive free cash flow in 2025 implies some operational efficiency, but the volatility in cash flows suggests ongoing financial management challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.41B	7.04B	7.79B	8.25B	9.60B	12.68B
Gross Profit	5.19B	3.86B	2.93B	4.42B	3.50B	4.41B
EBITDA	5.00B	4.43B	-410.90M	2.38B	8.98B	7.54B
Net Income	-672.92M	-749.83M	-5.43B	-3.75B	-210.24M	-2.78B
Balance Sheet
Total Assets	51.04B	52.40B	55.19B	76.99B	89.18B	97.43B
Cash, Cash Equivalents and Short-Term Investments	613.19M	458.47M	412.38M	522.28M	1.67B	1.09B
Total Debt	30.84B	32.06B	32.91B	40.69B	51.48B	63.01B
Total Liabilities	56.20B	58.07B	61.48B	79.37B	87.71B	95.56B
Stockholders Equity	-5.23B	-5.45B	-5.67B	-1.65B	2.29B	1.87B
Cash Flow
Free Cash Flow	4.11B	1.84B	12.64B	15.86B	-16.44B	3.16B
Operating Cash Flow	4.11B	3.81B	12.65B	16.43B	-1.95B	3.44B
Investing Cash Flow	-1.49B	-3.04B	-289.59M	-1.91B	10.87B	851.00M
Financing Cash Flow	-2.70B	-854.04M	-12.46B	-15.28B	-8.69B	-8.13B

Sadbhav Infrastructure Project Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SADBHIN, the sentiment is Negative. The current price of 3.73 is above the 20-day moving average (MA) of 3.36, above the 50-day MA of 3.53, and below the 200-day MA of 4.05, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 37.87 is Neutral, neither overbought nor oversold. The STOCH value of 15.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SADBHIN.

Sadbhav Infrastructure Project Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
GAYAPROJ	54 Neutral	₹2.41B	0.03	―	―	―	―
BRNL	50 Neutral	₹1.48B	2.58	―	―	-57.13%	―
RKEC	49 Neutral	₹932.99M	20.28	―	―	-12.26%	-36.87%
SADBHAV	46 Neutral	₹1.50B	-0.64	―	―	―	―
SADBHIN	43 Neutral	₹1.07B	-0.31	―	―	4.63%	67.17%