NSEI:SADBHIN

Stock Analysis Report

Sadbhav Infrastructure Project

Executive Summary

Sadbhav Infrastructure Project Limited engages in the development, construction, operation, and maintenance of infrastructure projects, as well as provision of related consulting and advisory services in India.

Rewards

Trading at 8.1% below its fair value

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Dividend of 1.56% is not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has Sadbhav Infrastructure Project's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SADBHIN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-19.2%

SADBHIN

-1.7%

IN Infrastructure

-0.8%

IN Market


1 Year Return

-61.3%

SADBHIN

2.5%

IN Infrastructure

11.1%

IN Market

Return vs Industry: SADBHIN underperformed the Indian Infrastructure industry which returned 2.6% over the past year.

Return vs Market: SADBHIN underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

SADBHINIndustryMarket
7 Day-19.2%-1.7%-0.8%
30 Day-25.5%-6.8%-2.3%
90 Day-16.0%-0.4%2.1%
1 Year-61.1%-61.3%2.8%2.5%13.1%11.1%
3 Year-65.4%-65.8%5.4%3.3%22.9%16.2%
5 Yearn/a-1.8%-5.3%34.9%22.6%

Price Volatility Vs. Market

How volatile is Sadbhav Infrastructure Project's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sadbhav Infrastructure Project undervalued compared to its fair value and its price relative to the market?

8.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SADBHIN (₹32.2) is trading below our estimate of fair value (₹35.03)

Significantly Below Fair Value: SADBHIN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SADBHIN is unprofitable, so we can't compare its PE Ratio to the Infrastructure industry average.

PE vs Market: SADBHIN is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SADBHIN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SADBHIN has negative assets, so we can't compare its PB Ratio to the IN Infrastructure industry average.


Next Steps

Future Growth

How is Sadbhav Infrastructure Project forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

0.007%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SADBHIN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SADBHIN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SADBHIN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SADBHIN's revenue is expected to decline over the next 3 years (-6.9% per year).

High Growth Revenue: SADBHIN's revenue is forecast to decline over the next 3 years (-6.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SADBHIN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sadbhav Infrastructure Project performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SADBHIN is currently unprofitable.

Growing Profit Margin: SADBHIN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SADBHIN is unprofitable, but has reduced losses over the past 5 years at a rate of 4.1% per year.

Accelerating Growth: Unable to compare SADBHIN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SADBHIN is unprofitable, making it difficult to compare its past year earnings growth to the Infrastructure industry (29.8%).


Return on Equity

High ROE: SADBHIN's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sadbhav Infrastructure Project's financial position?


Financial Position Analysis

Short Term Liabilities: SADBHIN has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SADBHIN has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SADBHIN has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SADBHIN's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: SADBHIN has a low level of unsold assets or inventory.

Debt Coverage by Assets: SADBHIN has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SADBHIN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SADBHIN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 44.5% per year.


Next Steps

Dividend

What is Sadbhav Infrastructure Project's current dividend yield, its reliability and sustainability?

1.56%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%0.6%markettop25%2.5%industryaverage0.4%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: SADBHIN's dividend (1.56%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: SADBHIN's dividend (1.56%) is low compared to the top 25% of dividend payers in the Indian market (2.52%).


Stability and Growth of Payments

Stable Dividend: SADBHIN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SADBHIN's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: SADBHIN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Vasistha Patel (46yo)

₹3,250,000

Compensation

Mr. Vasistha C. Patel serves as Managing Director of Sadbhav Infrastructure Projects Limited and has been its Executive Director since April 1, 2008. Mr. Patel has been an Executive Director at Sadbhav En ...


CEO Compensation Analysis

Compensation vs Market: Vasistha's total compensation ($USD45.45K) is below average for companies of similar size in the Indian market ($USD298.20K).

Compensation vs Earnings: Vasistha's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vasistha Patel
MD & Executive Director0yrs₹3.25m0.12% 15.2m
Varun Mehta
Chief Financial Officer5.3yrs₹3.93mno data
Hardik Modi
Compliance Officer & Company Secretary3.6yrs₹730.00kno data
Darshan Bhatt
Assistant General Manager of Accounts5.6yrs₹1.20mno data
Rajkumar Dhoot
Vice President of Finance7.3yrs₹2.59mno data

5.5yrs

Average Tenure

Experienced Management: SADBHIN's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vasistha Patel
MD & Executive Director0yrs₹3.25m0.12% 15.2m
Shashin Patel
Chairman of the Board2.9yrs₹6.00k0.23% 28.0m
Nitin Kumar Patel
Non-Independent & Non-Executive Director9.4yrs₹9.00k0.054% 6.6m
Sandip Patel
Independent & Non-Executive Director7.9yrs₹7.50k0.00058% 70.4k
Daksha Shah
Independent & Non-Executive Director4.9yrs₹9.00kno data
Atul Ruparel
Independent & Non-Executive Director5.3yrs₹6.00kno data
Arunbhai Patel
Independent & Non-Executive Director5.3yrs₹7.50k0.00054% 65.5k

5.3yrs

Average Tenure

51yo

Average Age

Experienced Board: SADBHIN's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sadbhav Infrastructure Project Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sadbhav Infrastructure Project Limited
  • Ticker: SADBHIN
  • Exchange: NSEI
  • Founded: 2007
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: ₹12.134b
  • Shares outstanding: 352.23m
  • Website: https://www.sadbhavinfra.co.in

Number of Employees


Location

  • Sadbhav Infrastructure Project Limited
  • Sadbhav
  • Near Havmor Restaurant
  • Ahmedabad
  • Gujarat
  • 380009
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539346BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2015
SADBHINNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2015

Biography

Sadbhav Infrastructure Project Limited engages in the development, construction, operation, and maintenance of infrastructure projects, as well as provision of related consulting and advisory services in India. It develops highways, roads, and other service infrastructure projects on a build, operate, and transfer (BOT) basis. The company was incorporated in 2007 and is based in Ahmedabad, India. Sadbhav Infrastructure Project Limited is a subsidiary of Sadbhav Engineering Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 13:11
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.