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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sadbhav Engineering Ltd

About the Company - Sadbhav Engineering Ltd

Sadbhav Engineering Ltd. is a Public Limited Listed company incorporated on 03/10/1988 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L45400GJ1988PLC011322 and registration number is 011322. Currently Company is involved in the business activities of Construction and maintenance of water main and line connection, water reservoirs including irrigation system (canal). Company’s Total Operating Revenue is Rs. 1226.24 Cr. and Equity Capital is Rs. 17.16 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Construction & ContractingSadbhav House, Opp. Law Garden Police Chowki, Ahmedabad Gujarat 380006investor@sadbhav.co.in
http://www.sadbhaveng.com
Management
NamePosition Held
Mr. Shashin V PatelChairman & Managing Director
Mr. Dwigesh B JoshiExecutive Director
Mr. Jatin J ThakkarDirector
Mr. Sandip V PatelIndependent Director
Dr. Tarang M DesaiIndependent Director
Mrs. Anjali N ChoksiIndependent Director

Sadbhav Engineering Ltd. Share Price Update

Share PriceValue
Today₹25.65
Previous Day₹27.00

Basic Stock Data of Sadbhav Engineering Ltd

Market Cap 474 Cr.
Current Price 27.6
High / Low32.3/8.50
Stock P/E
Book Value 7.34
Dividend Yield0.00 %
ROCE4.85 %
ROE60.2 %
Face Value 1.00

Data Source: screener.in

Competitors of Sadbhav Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Rail Vikas Nigam Ltd 55,462 Cr. 266346/56.038.1 37.90.79 %17.8 %20.8 % 10.0
Phoenix Mills Ltd 51,775 Cr. 2,8982,937/1,18652.2 4940.18 %9.94 %11.4 % 2.00
Nila Spaces Ltd 208 Cr. 5.275.77/2.4024.5 2.890.00 %4.98 %3.65 % 1.00
Setubandhan Infrastructure Ltd 10.7 Cr. 0.851.20/0.55119 3.940.00 %0.44 %0.18 % 1.00
A B Infrabuild Ltd 243 Cr. 55.059.8/15.240.5 17.50.00 %20.2 %19.0 % 10.0
Industry Average113.54 Cr65.8254.86111.250.19%10.67%11.01%4.8

Sadbhav Engineering Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales541696623398337517657500418432426711438
Expenses3774914782942413681,352412274401641558332
Operating Profit16320514610495149-6968814431-216153107
OPM %30%29%23%26%28%29%-106%18%35%7%-51%22%24%
Other Income80931312910787533-19-2667624019-225
Interest238265266253258165300261221258-79143151
Depreciation65614340403749363625343332
Profit before tax-59-27-32-160-9633-512-228-378-17669-4-302
Tax %-2%-51%61%6%0%-17%-2%-4%1%2%-15%-333%3%
Net Profit-60-41-12-150-9639-522-238-373-17379-16-293
EPS in Rs-2.41-1.420.24-6.39-3.761.54-33.62-10.05-15.12-7.70-1.45-0.60-12.25

Sadbhav Engineering Ltd Quarterly Chart

Sadbhav Engineering Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,8662,1602,7333,4474,0664,4984,9755,2403,4872,2431,9081,7772,008
Expenses2,4501,8292,2902,8613,0643,3023,4933,7592,3421,6452,2551,7291,933
Operating Profit4173314435861,0021,1961,4811,4811,145598-3484875
OPM %15%15%16%17%25%27%30%28%33%27%-18%3%4%
Other Income26163152561071541143191,87337775531110
Interest1563044526171,0751,1911,3131,3291,4111,003975661473
Depreciation86171130223233321358392401211167131124
Profit before tax2001812-198-199-162-76791,206-239-735-713-412
Tax %40%237%-118%-17%-11%-6%-50%168%8%1%1%2%
Net Profit117-3026-235-221-172-114-541,106-237-728-699-403
EPS in Rs8.130.502.93-10.23-6.02-3.15-0.181.2346.21-9.03-42.18-34.34-22.00
Dividend Payout %7%121%24%-7%-12%-24%-555%81%0%0%0%0%

Sadbhav Engineering Ltd Profit & Loss Yearly Chart

Sadbhav Engineering Ltd Growth

Compounded Sales Growth
10 Years:-2%
5 Years:-19%
3 Years:-20%
TTM:-7%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:-17%
TTM:87%
Stock Price CAGR
10 Years:-11%
5 Years:-30%
3 Years:-28%
1 Year:162%
Return on Equity
10 Years:-15%
5 Years:-24%
3 Years:-33%
Last Year:-60%

Sadbhav Engineering Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital15151517171717171717171717
Reserves1,1581,1951,2351,5209928898748181,5841,428784158109
Borrowings3,4874,5645,5726,9639,00110,08010,05611,1436,7687,1036,1595,1514,507
Other Liabilities9128721,0493,4332,7482,8043,9134,0243,8393,8423,9684,3773,842
Total Liabilities5,5736,6467,87111,93312,75913,79014,86016,00212,20712,39010,9289,7048,475
Fixed Assets1,2523,2045,2927,7218,73010,0579,7929,7274,4614,234411318254
CWIP2,6111,6367752,0101,5791902919699100444
Investments4033128313360481057307301771221
Other Assets1,6701,7741,6752,1712,4183,4844,7276,0746,9177,32710,3369,2608,215
Total Assets5,5736,6467,87111,93312,75913,79014,86016,00212,20712,39010,9289,7048,475

Sadbhav Engineering Ltd Reserves and Borrowings Chart

Sadbhav Engineering Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 6052127863857873661,2742455971,184-3,0951,788
Cash from Investing Activity -2,031-1,097-1,441-1,357-1,676-220-94-41,3111185,25232
Cash from Financing Activity 1,4837537061,037810-186-1,126-226-1,947-1,288-2,107-1,870
Net Cash Flow56-1325264-79-415315-381449-50

Sadbhav Engineering Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days881207772731291027613276279
Inventory Days981391581065453558514214818798
Days Payable3684813752351502432362837039461,1702,018
Cash Conversion Cycle-182-222-140-57-23-60-79-122-549-772-922-1,841
Working Capital Days621034258298410641123241484521
ROCE %9%5%5%5%9%9%11%12%11%8%5%5%

Sadbhav Engineering Ltd Financial Efficiency Indicators Chart

Sadbhav Engineering Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters46.74%44.89%44.86%44.86%44.63%40.57%38.57%37.69%37.69%37.69%37.69%37.79%
FIIs4.24%4.39%4.39%4.23%3.37%2.92%0.96%0.15%0.10%0.10%0.10%0.10%
DIIs23.47%22.17%15.60%14.73%14.50%13.84%12.96%10.95%10.88%10.88%10.82%9.20%
Public25.54%28.55%35.16%36.18%37.51%42.67%47.52%51.22%51.32%51.31%51.39%52.90%
No. of Shareholders47,45042,06562,63365,56266,40570,54571,06472,13770,64968,54266,60961,442

Sadbhav Engineering Ltd Shareholding Pattern Chart

No. of Sadbhav Engineering Ltd Shareholders

Sadbhav Engineering Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Small Cap Fund - Regular Plan93927420.0820.52
HDFC Hybrid Equity Fund - Regular Plan52917840.0511.56
Aditya Birla Sun Life Infrastructure Fund4770450.131.04

Sadbhav Engineering Ltd ROCE Trend

Sadbhav Engineering Ltd EPS Trend

Sadbhav Engineering Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)-34.34-42.18-9.0346.21-1.23
Diluted EPS (Rs.)-34.34-42.18-9.0346.21-1.23
Cash EPS (Rs.)-33.13-32.73-1.5487.8619.70
Book Value[Excl.RevalReserv]/Share (Rs.)19.5661.89104.00117.9356.44
Book Value[Incl.RevalReserv]/Share (Rs.)19.5661.89104.00117.9356.44
Revenue From Operations / Share (Rs.)103.57111.19130.75203.24305.42
PBDIT / Share (Rs.)26.0833.3755.4988.44101.74
PBIT / Share (Rs.)18.4523.6443.2065.0578.89
PBT / Share (Rs.)-41.58-42.84-13.9270.314.61
Net Profit / Share (Rs.)-40.76-42.45-13.8464.48-3.15
NP After MI And SOA / Share (Rs.)-34.34-42.18-9.0346.211.23
PBDIT Margin (%)25.1830.0142.4443.5133.31
PBIT Margin (%)17.8121.2633.0332.0025.82
PBT Margin (%)-40.14-38.52-10.6434.591.50
Net Profit Margin (%)-39.35-38.18-10.5831.72-1.03
NP After MI And SOA Margin (%)-33.15-37.93-6.9022.730.40
Return on Networth / Equity (%)-336.18-90.28-10.7149.532.53
Return on Capital Employeed (%)13.979.728.6912.3410.69
Return On Assets (%)-6.03-6.64-1.246.450.13
Long Term Debt / Equity (X)10.173.723.713.5211.60
Total Debt / Equity (X)27.137.184.243.9512.48
Asset Turnover Ratio (%)0.170.150.190.210.36
Current Ratio (X)0.970.980.961.201.03
Quick Ratio (X)0.970.970.931.160.97
Inventory Turnover Ratio (X)1.751.702.392.324.48
Dividend Payout Ratio (NP) (%)0.000.000.003.89193.18
Dividend Payout Ratio (CP) (%)0.000.000.002.589.87
Earning Retention Ratio (%)0.000.000.0096.11-93.18
Cash Earning Retention Ratio (%)0.000.000.0097.4290.13
Interest Coverage Ratio (X)0.670.580.941.081.31
Interest Coverage Ratio (Post Tax) (X)0.490.420.730.720.91
Enterprise Value (Cr.)4944.226259.747418.187030.7314673.77
EV / Net Operating Revenue (X)2.783.283.312.022.80
EV / EBITDA (X)11.0510.937.794.638.41
MarketCap / Net Operating Revenue (X)0.080.230.470.130.81
Retention Ratios (%)0.000.000.0096.10-93.18
Price / BV (X)0.840.560.730.305.12
Price / Net Operating Revenue (X)0.080.230.470.130.81
EarningsYield-3.97-1.60-0.141.630.00

Sadbhav Engineering Ltd Profitability Ratios (%)

Sadbhav Engineering Ltd Liquidity Ratios

Sadbhav Engineering Ltd Liquidity Ratios (%)

Sadbhav Engineering Ltd Interest Coverage Ratios (X)

Sadbhav Engineering Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sadbhav Engineering Ltd

Fair Value: ₹67.61

The stock is undervalued by 144.95% compared to the current price ₹27.6

*Investments are subject to market risks

Strength and Weakness of Sadbhav Engineering Ltd

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -260.75, which is a positive sign.
  1. The stock is trading at a high valuation with an average P/B ratio of 45.85 and average Dividend Yield of 25.98%.
  2. The stock has a low average ROCE of 7.83%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 157.83, which may not be favorable.
  4. The company has higher borrowings (6,965.69) compared to reserves (980.31), which may suggest financial risk.
  5. The company has not shown consistent growth in sales (2.69) and profit (-186.46).

Should I Buy Sadbhav Engineering Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sadbhav Engineering Ltd:
    1. Net Profit Margin: -39.35%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.97% (Industry Average ROCE: 12.5%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 0.49
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.97
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E of N/A (Industry average Stock P/E: 15.06)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✗ Total Debt / Equity: 27.13
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sadbhav Engineering Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE