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Check Before You Invest : Sattva Engineering Construction Ltd

BSE: 0 NSE: SATTVAENGG ISIN: INE14DW01018
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Sattva Engineering Construction Ltd belong to?
Sattva Engineering Construction Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Sattva Engineering Construction Ltd a good quality company?
Sattva Engineering Construction Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Sattva Engineering Construction Ltd undervalued or overvalued?
Sattva Engineering Construction Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 12.19 12.42
Price to Book 2.31 2.32
Price to Sales 1.19 1.21
EV to EBITDA 7.19 7.30
Q.4 Is Sattva Engineering Construction Ltd a good buy now?
Sattva Engineering Construction Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Sattva Engineering Construction Ltd?
Sattva Engineering Construction Ltd revenue growth is 21.7% for FY-2025, which is above its 3-year CAGR of 2.07%, indicating faster growth.

Q.2 Gross Profit margin of Sattva Engineering Construction Ltd?
Sattva Engineering Construction Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.9% for FY-2025, which is above its 3-year median of 8.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Sattva Engineering Construction Ltd?
Sattva Engineering Construction Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.13% for FY-2025, which is above its 3-year median of 16.43% indicating increasing margins.

Q.4 Net Profit Margin of Sattva Engineering Construction Ltd?
Sattva Engineering Construction Ltd Net Profit Margin is 9.76% for FY-2025, is above its 3-year median of 5.93%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 13.9 8.5
Operating Profit Margin (%) 20.13 16.43
Net Profit Margin (%) 9.76 5.93

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sattva Engineering Construction Ltd?
Sattva Engineering Construction Ltd Return on Asset is 9.06%, which is above its 3-year historical median of 5.36%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sattva Engineering Construction Ltd?
Sattva Engineering Construction Ltd Return on capital employed is 28.98% for FY-2025, which is above its 3-year historical median of 23.76%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Sattva Engineering Construction Ltd?
Sattva Engineering Construction Ltd Return on equity is 27.1% for FY-2025, which is above its 3-year historical median of 20.98%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Sattva Engineering Construction Ltd?
Sattva Engineering Construction Ltd Cash conversion cycle is 176 days, above its 3-year historical median of 157 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 0.93 0.93
ROE (%) 27.1 20.98
ROCE (%) 28.98 23.76
Cash Conversion Cycle 176 days 157 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Sattva Engineering Construction Ltd?
Sattva Engineering Construction Ltd Debt-to-Equity ratio is 0.83, which is above the industry average of 0.38, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sattva Engineering Construction Ltd?
Sattva Engineering Construction Ltd Debt to cash flow from operations is -6.42, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sattva Engineering Construction Ltd?

Q.1 Promoter shareholding and pledge status of Sattva Engineering Construction Ltd?
Promoters hold 62.91% of the Sattva Engineering Construction Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sattva Engineering Construction Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sattva Engineering Construction Ltd vs industry peers?
Sattva Engineering Construction Ltd revenue CAGR is 2.07%, compared to the industry median CAGR of 15.97%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 21.7 16
Gross Profit Growth (%) 85.7 40.5
Operating Profit Growth (%) 46.2 34.4
Net Profit Growth (%) 80 54.4
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.93 0.83
ROE (%) 27.1 11.59
ROCE (%) 28.98 14.23
Cash Conversion Cycle (days) 175.69 53

Valuation & price assessment

Q.1 Stock return of Sattva Engineering Construction Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Sattva Engineering Construction Ltd vs historical?
The current P/E ratio of 12.19 is in line with than its historical median of 12.42, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 12.19 12.42 22.41
Price to Book 2.31 2.32 1.92
Price to Sales 1.19 1.21 1.65
EV to EBITDA 7.19 7.30 12.04

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