WEBSITE BSE:539112 NSE: SAB Inc. Year: 1983 Industry: Construction - Real Estate My Bucket: Add Stock
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1. Business Overview
SAB Industries Ltd. operates in the Construction and Real Estate sector in India. Its core business model likely involves the development, construction, and sale of various types of properties, which can include residential complexes, commercial spaces, and potentially infrastructure projects. The company generates revenue primarily through the sale of completed or under-construction real estate properties to end-users or investors, and possibly through contract-based construction services for third parties.
2. Key Segments / Revenue Mix
Given its sector, the primary segments would typically be:
Property Development: Involving land acquisition, planning, project execution, marketing, and sale of self-developed residential and commercial properties.
Construction Services: Potentially undertaking construction contracts for external clients, including government bodies or other private developers.
Specific revenue contribution from these segments is not available from the provided information.
3. Industry & Positioning
The Indian Construction and Real Estate industry is highly fragmented, characterized by numerous regional and local players alongside a few large national developers. It is a cyclical industry heavily influenced by economic growth, interest rates, government policies (like RERA, PMAY, infrastructure spending), and consumer sentiment. Without specific market share or project details, SAB Industries Ltd. is likely positioned as a participant in a competitive market, potentially focusing on specific geographies or property types within India. Its competitive standing relative to peers would depend on its project pipeline, execution capabilities, financial strength, and brand recognition within its operational areas.
4. Competitive Advantage (Moat)
Based solely on the name and sector, explicit strong and durable competitive advantages (moats) are not immediately evident for SAB Industries Ltd.
Brand: Unlikely to be a national brand moat, though it might have local recognition.
Scale: Unlikely to possess a scale advantage over national giants.
Switching Costs/Network Effects: Not typically applicable in this sector for buyers.
Proprietary Technology/Patents: Highly unlikely in conventional construction/real estate.
The company's ability to compete likely relies on efficient project execution, timely delivery, quality construction, strategic land acquisition, and local market understanding rather than deep structural moats.
5. Growth Drivers
Key factors that could drive growth for SAB Industries Ltd. over the next 3-5 years include:
Urbanization and Population Growth: Continued migration to urban centers drives demand for housing and commercial spaces.
Government Infrastructure Spending: Increased government investment in physical infrastructure (roads, railways, smart cities) creates opportunities for construction companies.
Rising Disposable Incomes: Growing middle class and increasing affluence support demand for quality real estate.
Favorable Regulatory Environment: Initiatives like RERA (Real Estate Regulatory Authority) can improve buyer confidence and attract investment into the organized sector.
Accessibility to Financing: Availability of affordable home loans and project financing for developers.
6. Risks
Economic Downturn: A slowdown in the broader Indian economy can significantly impact property demand and sales.
Interest Rate Fluctuations: Rising interest rates increase borrowing costs for developers and make home loans more expensive, deterring buyers.
Regulatory & Environmental Hurdles: Delays in obtaining various clearances (environmental, municipal, etc.) can lead to project delays and cost overruns.
Land Acquisition Challenges: Difficulty in acquiring suitable land parcels at reasonable costs is a persistent issue in India.
Raw Material Price Volatility: Fluctuations in prices of cement, steel, and other construction materials can impact project profitability.
Intense Competition: The fragmented nature of the industry leads to strong competition, potentially impacting pricing power and margins.
Funding & Liquidity Risk: Real estate projects are capital-intensive; access to timely and adequate funding is crucial.
7. Management & Ownership
Specific details regarding the promoters, key management personnel, or their quality are not provided. In India, many companies, especially in the construction and real estate sector, are promoter-driven, where the founding family or individuals hold significant control and play a direct role in management. The ownership structure typically includes the promoter group, institutional investors, and public shareholders, but exact percentages are unknown without further data.
8. Outlook
SAB Industries Ltd. operates in a sector with significant long-term potential driven by India's demographic trends and economic growth, but also faces considerable cyclicality and operational challenges.
Bull Case: If the company can successfully acquire strategic land parcels, execute projects efficiently, maintain quality, and manage its finances prudently, it could capitalize on the ongoing urbanization and government push for housing and infrastructure. Favorable macroeconomic conditions and stable regulatory policies would support growth.
Bear Case: The company is exposed to risks such as economic slowdowns, rising input costs, increased interest rates, and intense competition. Inefficient project execution, delays in approvals, or a highly leveraged balance sheet could significantly impede its performance and financial stability.
The company's future performance will largely depend on its strategic choices, operational effectiveness, and ability to navigate the complex and dynamic Indian real estate market.
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Market Cap ₹228 Cr.
Stock P/E -10.8
P/B 0.5
Current Price ₹150.1
Book Value ₹ 279.8
Face Value 10
52W High ₹206.8
Dividend Yield 0%
52W Low ₹ 105
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 15 | 5 | 21 | 13 | 9 | 11 | 14 | 6 | 7 | 4 |
| Other Income | 2 | 1 | 0 | 1 | 0 | 2 | 0 | 1 | 0 | 2 |
| Total Income | 17 | 6 | 21 | 14 | 9 | 13 | 14 | 7 | 7 | 7 |
| Total Expenditure | 15 | 6 | 17 | 12 | 8 | 11 | 10 | 6 | 7 | 6 |
| Operating Profit | 1 | 0 | 4 | 1 | 1 | 2 | 4 | 1 | 0 | 1 |
| Interest | 1 | 1 | 3 | 1 | 1 | 1 | 4 | 0 | 0 | 0 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 1 | -1 | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 |
| Provision for Tax | 0 | -0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | 1 | -1 | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 |
| Adjustments | 33 | -9 | -17 | -2 | -0 | -9 | -11 | 46 | -23 | -15 |
| Profit After Adjustments | 34 | -9 | -17 | -2 | -0 | -8 | -11 | 46 | -23 | -15 |
| Adjusted Earnings Per Share | 22.1 | -6 | -11 | -1.2 | -0.2 | -5.1 | -7.4 | 30.6 | -15.2 | -9.7 |
| #(Fig in Cr.) | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|
| Net Sales | 46 | 47 | 31 |
| Other Income | 3 | 3 | 3 |
| Total Income | 49 | 50 | 35 |
| Total Expenditure | 42 | 41 | 29 |
| Operating Profit | 6 | 8 | 6 |
| Interest | 5 | 6 | 4 |
| Depreciation | 0 | 0 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 |
| Profit Before Tax | 39 | -21 | 0 |
| Provision for Tax | 0 | 0 | 0 |
| Profit After Tax | 39 | -21 | 0 |
| Adjustments | 74 | -47 | -3 |
| Profit After Adjustments | 113 | -68 | -3 |
| Adjusted Earnings Per Share | 74.2 | -44.9 | -1.7 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 2% | 0% | 0% | 0% |
| Operating Profit CAGR | 33% | 0% | 0% | 0% |
| PAT CAGR | -154% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -6% | 24% | 42% | 28% |
| ROE Average | -5% | 2% | 2% | 2% |
| ROCE Average | -3% | 3% | 3% | 3% |
| #(Fig in Cr.) | Mar 2024 | Mar 2025 |
|---|---|---|
| Shareholder's Funds | 424 | 356 |
| Minority's Interest | 0 | 0 |
| Borrowings | 50 | 23 |
| Other Non-Current Liabilities | 80 | 63 |
| Total Current Liabilities | 96 | 121 |
| Total Liabilities | 651 | 562 |
| Fixed Assets | 20 | 19 |
| Other Non-Current Assets | 453 | 363 |
| Total Current Assets | 178 | 180 |
| Total Assets | 651 | 562 |
| #(Fig in Cr.) | Mar 2024 | Mar 2025 |
|---|---|---|
| Opening Cash & Cash Equivalents | 2 | 15 |
| Cash Flow from Operating Activities | -22 | 6 |
| Cash Flow from Investing Activities | -0 | 2 |
| Cash Flow from Financing Activities | 35 | -7 |
| Net Cash Inflow / Outflow | 12 | 1 |
| Closing Cash & Cash Equivalent | 15 | 16 |
| # | Mar 2024 | Mar 2025 |
|---|---|---|
| Earnings Per Share (Rs) | 74.2 | -44.92 |
| CEPS(Rs) | 25.73 | -13.66 |
| DPS(Rs) | 0 | 0 |
| Book NAV/Share(Rs) | 278.74 | 233.82 |
| Core EBITDA Margin(%) | 7.42 | 11.57 |
| EBIT Margin(%) | 97.2 | -31.84 |
| Pre Tax Margin(%) | 85.78 | -44.22 |
| PAT Margin (%) | 85.43 | -44.98 |
| Cash Profit Margin (%) | 85.97 | -44.29 |
| ROA(%) | 5.98 | -3.48 |
| ROE(%) | 9.17 | -5.41 |
| ROCE(%) | 8.71 | -3.18 |
| Receivable days | 0 | 0 |
| Inventory Days | 1248.96 | 1214.82 |
| Payable days | 8.41 | 8.22 |
| PER(x) | 2.63 | 0 |
| Price/Book(x) | 0.7 | 0.65 |
| Dividend Yield(%) | 0 | 0 |
| EV/Net Sales(x) | 8.03 | 6.23 |
| EV/Core EBITDA(x) | 56.71 | 35.43 |
| Net Sales Growth(%) | 0 | 3.05 |
| EBIT Growth(%) | 0 | -133.75 |
| PAT Growth(%) | 0 | -154.26 |
| EPS Growth(%) | 0 | -160.53 |
| Debt/Equity(x) | 0.2 | 0.22 |
| Current Ratio(x) | 1.86 | 1.49 |
| Quick Ratio(x) | 0.23 | 0.19 |
| Interest Cover(x) | 8.51 | -2.57 |
| Total Debt/Mcap(x) | 0.28 | 0.33 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 73.57 | 73.57 | 73.57 | 73.57 | 73.57 | 73.57 | 73.57 | 73.57 | 73.57 | 73.57 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Public | 26.43 | 26.43 | 26.43 | 26.43 | 26.43 | 26.43 | 26.43 | 26.43 | 26.43 | 26.43 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.4 | 0.4 | 0.4 | 0.4 | 0.4 | 0.4 | 0.4 | 0.4 | 0.4 | 0.4 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.52 | 1.52 | 1.52 | 1.52 | 1.52 | 1.52 | 1.52 | 1.52 | 1.52 | 1.52 |
* The pros and cons are machine generated.
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