There’s No Escaping Sadbhav Engineering Limited’s (NSE:SADBHAV) Muted Revenues Despite A 31% Share Price Rise
Sadbhav Engineering Limited (NSE:SADBHAV) shareholders would be excited to see that the share price has had a great month, posting a 31% gain and recovering from prior weakness. But the last month did very little to improve the 54% share price decline over the last year.
Even after such a large jump in price, Sadbhav Engineering’s price-to-sales (or “P/S”) ratio of 0.3x might still make it look like a buy right now compared to the Construction industry in India, where around half of the companies have P/S ratios above 1.6x and even P/S above 4x are quite common. However, the P/S might be low for a reason and it requires further investigation to determine if it’s justified.
