1. Is Sadbhav Engineering Ltd a good quality company?
Past 10 year's financial track record analysis by Moneyworks4me indicates that Sadbhav Engineering Ltd is a good quality company.
2. Is Sadbhav Engineering Ltd undervalued or overvalued?
The key valuation ratios of Sadbhav Engineering Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.
3. Is Sadbhav Engineering Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Sadbhav Engineering Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘValue Creation Index Colour Code Guide ⓘ
|ROCE % ⓘ||16.7%||6.5%||12.2%||9.6%||9.7%||9.6%||10.4%||8.9%||6%||5.5%||-|
|Value Creation Index ⓘ||0.2||-0.5||-0.1||-0.3||-0.3||-0.3||-0.2||-0.4||-0.6||-0.6||-|
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ
|YoY Gr. Rt. %||-||-32.3%||30.2%||25.9%||7.3%||4.2%||5.6%||1.3%||-36.6%||-27.9%||-|
|Adj EPS ⓘ||9.4||2.1||9||6.7||8.4||10.9||12.9||10.9||4.3||3.2||2.9|
|YoY Gr. Rt. %||-||-77.9%||332.4%||-24.7%||24%||30.6%||17.9%||-15.6%||-60.6%||-25.5%||-|
|BVPS (₹) ⓘ||50.5||55||61.5||78.8||86.8||96.8||108.8||118.5||122.6||125||124.2|
|Adj Net Profit ⓘ||141||31.2||136||116||143||187||221||186||73.4||54.8||50|
|Cash Flow from Ops. ⓘ||105||65.8||462||-36.5||162||-50.8||653||200||143||197||-|
|Debt/CF from Ops. ⓘ||4.3||11.6||2.2||-30.1||7.5||-35||2.3||7.9||8.6||6.7||-|
CAGR ⓘCAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Adj EPS ⓘ||-11.3%||-17.5%||-37.2%||-25.5%|
Key Financial Parameters ⓘPerformance Ratio Colour Code Guide ⓘ
|Return on Equity % ⓘ||20.3||3.9||15.2||10||10.1||11.9||12.5||9.6||3.6||2.6||2.3|
|Op. Profit Mgn % ⓘ||10.9||8.6||10.8||10.5||10.6||10.8||11.9||12.1||12.5||13||13.4|
|Net Profit Mgn % ⓘ||5.3||1.7||5.8||3.9||4.5||5.6||6.3||5.3||3.3||3.4||3.3|
|Debt to Equity ⓘ||0.6||0.9||1.1||0.8||0.8||1.1||0.8||0.8||0.6||0.6||0.1|
|Working Cap Days ⓘ||192||309||273||267||277||294||318||335||565||836||1,147|
|Cash Conv. Cycle ⓘ||69||94||72||66||76||112||125||119||83||-26||454|
Debt to equity has declined versus last 3 years average to 0.61
Return on Equity has declined versus last 3 years average to 2.30%
Sales growth has been subdued in last 3 years -22.63%
Sales growth is not so good in last 4 quarters at 2.15%
|TTM EPS (₹)||2.9||-11.3|
|TTM Sales (₹ Cr.)||1,507||2,053|
|BVPS (₹.) ⓘ||124.2||75.3|
|Reserves (₹ Cr.) ⓘ||2,114||1,274|
|From the Market|
|52 Week Low / High (₹)||37.30 / 96.30|
|All Time Low / High (₹)||19.57 / 438.85|
|Market Cap (₹ Cr.)||690|
|Equity (₹ Cr.)||17.2|
|Face Value (₹)||1|
|Industry PE ⓘ||29.7|
Sadbhav Engineering was incorporated in 1988 as a private company in the state of Gujarat, by Shri Vishnubhai M Patel, having rich experience in the construction field since 1968, The company took over the running business of Bhavna Construction Company with effect from October 1,1989. Sadbhav focuses on the roads, mining and irrigation sector and aggressively participates in the BOT opportunity in the road sector. It has chosen to adopt an integrated approach of developing & constructing road projects.
In the past one year the company has been awarded three BOT projects in consortium. It has also been awarded the Certificate of Excellence in Productivity, Quality, and Innovation & Management by the Institute of Economic Studies, New Delhi.The company has been awarded one BOT project for Strengthening and Widening of Ahmedabad ring road through a consortium with Patel Infrastructure. The total project cost is Rs. 560 crore. The Ahmedabad Ringroad infrastructure limited, a Special purpose vehicle (SPV), has been incorporated for the execution of the said project.
Sadbhav Engineering mainly operates in three core businesses namely roads, mining and irrigation-
Roads Sadbhav forayed into the road sector in 1995 and has established a good reputation for itself in the industry. It has executed several projects for NHAI and the State Governments of Gujarat and Karnataka. It has also worked with many industry stalwarts like L&T, HCC, Punj Lloyd and Gammon. The scope of work largely encompasses constructing, widening and strengthening of roads and highways. Currently, around 85% of the companyâ€™s revenue comes from this sector.
Mining Sadbhav commenced mining operations in 1990 by executing rock excavation of copper at Madhya Pradesh for L&T . This was followed by several other projects which largely involved work for GIPCL. It executes projects involving excavation of overburden and lignite. At present, the operations are largely concentrated in the mines located in Gujarat.
Irrigation Around 9-10% of the companyâ€™s revenues come from projects in the irrigation sector. Over the past 17 years, the company has successfully executed construction of earthen dams, canals, syphons, remodeling and improvement of canals. The rich experience and execution capabilities of the company have enabled them to participate over various phases, in the execution of the NMC, which is the world's largest concrete lined canal, having a capacity of 40,000 cusecs.
Major clients of the company