Sadbhav Infrastructure Project Limited

Industrials — Engineering & Construction · NSE

₹2.50+₹0.05 (+2.04%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with modest growth. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sadbhav Infrastructure Project Limited, together with its subsidiaries, engages in the development, construction, operation, and maintenance of infrastructure projects in India. The company constructs and manages roadways and highways.

IndustryEngineering & Construction

SectorIndustrials

Employees34

Annual revenue₹770 Cr

How does it make money?

Turns over ₹770 Cr a year. Of every ₹100 of sales, about ₹-3 reaches shareholders as profit, with ₹71 left at the operating level before interest, tax and depreciation. Each of its 34 employees supports ₹22.65 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹22.65 Cr

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 has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -6% while net margin moved -94% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-6%

Margin effect-94%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 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.

Historical Valuation

Current P/E

50.0x

Sector Median

30.1x

median of 3 sector peers

⚠️Against its sector it trades 66% above the peer median of 30.1x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

30.1x median of 3 peers · +66%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

4.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 36% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹20 Cr in the latest reported year.
🔴Receivables growing faster than salesFinancial
Receivables up 204% against revenue up -6% — sales are being booked faster than they are collected.
🟡Margins are compressingFinancial
EBITDA margin is down 4.6 points over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.87 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 36% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 75.9% to 71.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 204% against revenue up -6%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 66% above the peer median. That premium needs a reason that persists, or it closes.

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

1EBITDA margin holds above 69%✓ 71.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹891 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹88 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

50.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹0.05

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

7.5%

Modest

Modest growth

Profit Growth (YoY)

179.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹891 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

-11.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

55.4%

Good

Healthy core-business profitability

Net Margin

0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.87

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2.6 / 2.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹821 Cr	₹775 Cr	₹700 Cr	₹770 Cr	-2.1%
EBITDA	₹623 Cr	₹404 Cr	₹489 Cr	₹548 Cr	-4.2%
EBITDA Margin	75.9%	52.1%	69.8%	71.2%	—
PAT (Net Profit)	-₹375 Cr	-₹543 Cr	-₹75 Cr	-₹20 Cr	—
EPS	₹-10.65	₹-15.42	₹-2.13	₹-0.56	—
ROCE	8.5%	-35.0%	372.5%	—	—
Total Debt	₹4,069 Cr	₹3,291 Cr	₹3,206 Cr	₹2,592 Cr	-14.0%
Free Cash Flow	₹1,586 Cr	₹1,264 Cr	₹606 Cr	₹891 Cr	-17.5%

🔴 Revenue has shrunk at 2.1% a year over 3 years.

🔴 EBITDA has shrunk at 4.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 75.9% to 71.2% over 3 years (-4.6 pts).

🟢 Total Debt has shrunk at 14.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 17.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,342 Cr

Total Liabilities

₹4,916 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹981 Cr

Capex

-₹90 Cr

Shareholding (proxy)

Institutional Holding

2.2%

Insider Holding

70.3%

Corporate Actions

Ex-Dividend Date

17 Sept 2019

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

2 mixed4 general

Sadbhav Infrastructure Project Share Price Forecast to 2030

Univest, 27 Jul

Sadbhav Infrastructure Project Limited's (NSE:SADBHIN) Share Price Is Matching Sentiment Around Its Revenues

Simply Wall Street, 07 Feb

Sadbhav Infrastructure posts ₹175.94M profit in Q1FY27

scanx.trade, 11 Aug

Sadbhav Infrastructure Project Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Sadbhav Infrastructure Project Share Price Target 2026: Rs 3.26 Analyst Forecast

Univest, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Sadbhav Infrastructure Projects reports standalone net profit of Rs 17.59 crore in the June 2026 quarter

Business Standard, 12 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Sadbhav Infrastructure Project Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑