Sanghvi Movers Limited

Industrials — Rental & Leasing Services · NSE

₹347.00−₹3.45 (−0.98%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Sanghvi Movers Limited, together with its subsidiaries, operates as a crane rental company in India. It operates through Crane Hiring and Ancillary Services; Wind EPC; and Project EPC segment.

IndustryRental & Leasing Services

SectorIndustrials

Employees441

Annual revenue₹1,070 Cr

How does it make money?

Turns over ₹1,070 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹38 left at the operating level before interest, tax and depreciation. Each of its 441 employees supports ₹2.43 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin38.2%

Net margin17.2%

Revenue / employee₹2.43 Cr

Who are its competitors?

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

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 15.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.2%

ROE14.1%

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +135% while net margin moved -30% 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+135%

Margin effect-30%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 1.04 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

77/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

15.1x

3Y Median

19.9x

40 monthly readings · mean 23.1x · range 9.7x–52.2x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 24% below its 3y median of 19.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 83% below the peer median of 88.8x.

vs. its own history

Cheap

19.9x median over 40 months · -24%

vs. sector peers

Cheap

88.8x median of 3 peers · -83%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

15.1x

P/B

2.29x

EV/EBITDA

8.9x

PEG

0.84

Dividend Yield

0.58%

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 15.1x the stock trades 24% below its own median of 19.9x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 58.0% to 38.2% over 3 years.
Debt is rising
Total debt is up 269% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 174% against revenue growth of 135% — customers are taking longer to pay.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 269% over 3 years, from ₹183 Cr to ₹674 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 19.8 points, from 58.0% to 38.2%.
🟡Receivables growing faster than salesFinancial
Receivables up 174% against revenue up 135% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 24% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 83% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 58.0% to 38.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 174% against revenue up 135%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1Revenue growth stays above 25% a year✓ 32.9% CAGR
Latest reported year was 38.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 36%✓ 38.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹129 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹3,004 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.1x

Fair

Fairly valued against the generic band

P/B Ratio

2.29x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹23.03

Profitable

Profitable on a per-share basis

ROE

14.1%

Moderate

Moderate capital efficiency

ROCE

15.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.51x

Low

Conservative leverage

Revenue Growth (YoY)

38.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

30.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.58%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹129 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹347

Operating Margin

22.9%

Good

Healthy core-business profitability

Net Margin

16.9%

Good

Strong bottom-line conversion

Current Ratio

1.77

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.04

Market-like

Moves roughly in line with the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

414.8 / 444.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

15.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹456 Cr	₹619 Cr	₹782 Cr	₹1,070 Cr	+32.9%
EBITDA	₹264 Cr	₹392 Cr	₹337 Cr	₹409 Cr	+15.6%
EBITDA Margin	58.0%	63.3%	43.1%	38.2%	—
PAT (Net Profit)	₹112 Cr	₹188 Cr	₹157 Cr	₹184 Cr	+18.0%
EPS	₹12.94	₹21.71	₹18.08	₹21.29	+18.1%
ROE	13.3%	18.6%	13.7%	14.1%	—
ROCE	16.6%	22.5%	16.8%	15.2%	—
Total Debt	₹183 Cr	₹292 Cr	₹438 Cr	₹674 Cr	+54.5%
Free Cash Flow	₹25 Cr	-₹20 Cr	-₹75 Cr	-₹129 Cr	—

🟢 Revenue has grown at 32.9% a year over 3 years.

🟢 EBITDA has grown at 15.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 58.0% to 38.2% over 3 years (-19.8 pts).

🟢 PAT (Net Profit) has grown at 18.0% a year over 3 years.

🟢 EPS has grown at 18.1% a year over 3 years.

🟡 ROE has held roughly flat at 14.1% over 3 years.

🔴 ROCE has fallen from 16.6% to 15.2% over 3 years (-1.4 pts).

🔴 Total Debt has grown at 54.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹25 Cr to -₹129 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,343 Cr

Total Liabilities

₹1,033 Cr

Total Debt

₹674 Cr

Cash & Equivalents

₹37 Cr

Operating Cash Flow

₹278 Cr

Capex

-₹408 Cr

Shareholding (proxy)

Institutional Holding

1.5%

Insider Holding

57.9%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

14 Aug 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive2 mixed3 general

Sanghvi Movers submits FY26 sustainability report with key ESG metrics

scanx.trade, 18 Oct

Here's Why We Think Sanghvi Movers (NSE:SANGHVIMOV) Might Deserve Your Attention Today

Simply Wall Street, 22 May

Sanghvi Movers vs Nifty 50: 1Y Return +1.55% vs -10.93%

Univest, 12 Oct

Sanghvi Movers Q1 Consolidated Net Profit Rises to ₹65 Crore vs ₹50.26 Crore YoY

Sahi, 31 JulResults

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

Sanghvi Movers slides as Q1 PAT declines 5% QoQ to Rs 65 crore

Business Standard, 31 JulResults

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

Sanghvi Movers Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 11 AugAnalyst view

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

Watch Items

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

🟢Business QualityStrong15.8/20

🟡Financial HealthAdequate12/20

🟢GrowthStrong14.7/20

🟢ProfitabilityStrong9.9/15

🟢ValuationAttractive10.7/15

🔴RiskHigh3.7/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 25% a year32.9% CAGR
✓EBITDA margin holds above 36%38.2%
✗Free cash flow remains positive-₹129 Cr
✓Debt / EBITDA stays below 2x1.6x
✓ROCE stays above 12%15.2%