Sadbhav Infra. (SADBHIN)

Score breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Deep value: Price-to-book of 0.13 against book value of ₹21.13 per share
• Piotroski F-Score of 7/9 suggests some measurable improvement in financials
• Sales growth of 18.19% shows revenue expansion despite sector headwinds
• ROCE of 14.01% shows operating capital is earning a positive return before leverage effects
• Promoter holding of 70.25% broadly aligns management with shareholders

Concerns

• Latest quarter net loss of ₹92 Cr against sales of ₹206 Cr is a serious red flag
• ROE of -38.45% indicates significant value destruction for equity shareholders
• No dividend means the investor relies entirely on price appreciation
• Civil construction is cyclical and low-moat; debt/equity not available obscures leverage risk

AI Analysis

As a value investor, I first ask whether this is a business I can understand and whether the price gives me a margin of safety. Sadbhav Infra is a civil construction company, a sector where competition is intense and pricing is often dictated by the economic cycle, not by the company. At ₹2.79, the market cap is only ₹114 Cr, yet book value is ₹21.13 per share. That is a price-to-book of 0.13. But a discount to assets is only attractive if those assets are truly worth their carrying value and earning power follows. The latest quarter reports sales of ₹206 Cr and a net loss of ₹92 Cr. A full-year ROE of -38.45% is unacceptable for any owner. The trailing P/E of 3.69 and PEG of 0.02 appear to be backward-looking artifacts of a 379.95% profit growth figure; they are not evidence of durable profitability. The positive Piotroski F-Score of 7/9 hints at some repair in operational fundamentals, but one score cannot compensate for continuing shareholder losses. There is no dividend; as a minority shareholder, I am entirely dependent on management’s ability to deploy capital. Promoter holding of 70.25% is a double-edged sword—it aligns interests but gives minority investors little voice. ROCE of 14.01% suggests some underlying asset productivity, but the negative ROE shows that leverage and losses are hurting equity holders. This is not a franchise with a moat; it is a beaten-down balance sheet candidate. I would only consider it as a special-situation asset play if book value is credible, debt is controlled, and losses reverse. Until then, the margin of safety is statistical, not fundamental.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer