SAB Industries Limited

Industrials — Engineering & Construction · NSE

₹165.45₹0.00 (0.00%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of SAB Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

SAB Industries Limited engages in the construction and real estate businesses in India. It operates through Construction Division, Real Estate Business, Investment Business, and Agriculture segments. The company develops and sells real estate.

IndustryEngineering & Construction

SectorIndustrials

Employees60

Annual revenue₹30 Cr

How does it make money?

Turns over ₹30 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 60 employees supports ₹50.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹50.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 1.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.1%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Profit has declined at 38.0% a year
✗ Profit fell 38.3% in the latest year

Quality vs. Valuation

Company Quality

33/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

43.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 3.9% to 0.6% — each rupee of shareholder capital earns less than it did.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 57% over 3 years, from ₹49 Cr to ₹77 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹14 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 76% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 10.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 3.9% to 0.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 23%✓ 24.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 10.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 1.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

2 good · 2 neutral · 7 weak

Market Cap

₹252 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.73x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-13.06

Loss-making

Negative earnings per share — the business is losing money

ROE

0.6%

Weak

Weak capital efficiency

ROCE

1.7%

Weak

Low return on total capital employed

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

-1.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-38.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-13.0%

Weak

Thin margins leave little room for error

Net Margin

-65.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.07

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

15.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹46 Cr	₹47 Cr	₹30 Cr	—
EBITDA	₹0 Cr	₹44 Cr	₹8 Cr	₹7 Cr	+151.2%
EBITDA Margin	—	96.6%	17.2%	24.5%	—
PAT (Net Profit)	₹9 Cr	₹39 Cr	-₹21 Cr	₹2 Cr	-38.0%
EPS	₹5.71	₹25.57	₹1.16	₹1.36	-38.0%
ROE	3.9%	9.2%	-5.9%	0.6%	—
ROCE	2.8%	7.9%	1.8%	1.7%	—
Total Debt	₹49 Cr	₹84 Cr	₹77 Cr	₹77 Cr	+16.2%
Free Cash Flow	-₹37 Cr	-₹24 Cr	₹6 Cr	-₹14 Cr	—

🟢 EBITDA has grown at 151.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 96.6% to 24.5% over 3 years (-72.1 pts).

🔴 PAT (Net Profit) has shrunk at 38.0% a year over 3 years.

🔴 EPS has shrunk at 38.0% a year over 3 years.

🔴 ROE has fallen from 3.9% to 0.6% over 3 years (-3.3 pts).

🔴 ROCE has fallen from 2.8% to 1.7% over 3 years (-1.1 pts).

🔴 Total Debt has grown at 16.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹535 Cr

Total Liabilities

₹192 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹10 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

98.6%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive5 general

SAB Industries Lower Circuit Today: Price, Data and Peers

Univest, 08 Oct

SAB Industries adopts FY26 financials, re-appoints Rajinder Kumar Garg

scanx.trade, 30 Sept

Steel Strips Wheels Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Volume Gainers, September 23, 2026 at 3:30 PM IST

HDFC Sky, 23 Sept

SAB Industries fixes September 24 as AGM record date for 2026

scanx.trade, 24 Aug

Goldstar Power consolidated net profit rises 1954.93% in the June 2026 quarter

Business Standard, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Revenue growth is negative (-1.0%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Valuation

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑