Concall transcriptJun 2026
Jun 2026 · Transcript
Source: Nse
Sattva Engineering Construction Ltd. (SATTVAENGG)
SME CapIndustrials stocks · SME cap · NSE
Sattva Engineering Construction Ltd. is an EPC firm specializing in water and wastewater infrastructure, including WSS, UGSS, STP, and WTP projects. With 15+ years experience and 50+ projects delivered, it offers integrated design, execution, and O&M services, primarily in Tamil Nadu and expanding into South India.
Data qualityFresh enough for analysisQuote updated 19 Oct, 03:31 pm ISTDetails
Quote19 Oct, 03:31 pm IST
Base fundamentals11 Oct 2026 · screener
Latest result01 Jun, 08:22 pm IST
Score20 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags24 Apr 2026
Coverage13/14 · 93%
Valuation2026-07-20 · Rf 6.8% · Industrials P/E 26.2 (n=537)
Technical timing lens
Trend score and candlestick chart
37BearishSMA20 -12.7% / mo · MACD − · near 52W low
Stock trend: 28
Sector RS: 50
Sector 3M: -6.3% vs Nifty 500 -5.6%
Industrials FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
SATTVAENGGD candles · FIT view-26.3%Latest close ₹50.90 on 2026-10-19
Bar
-4.0%
RSI
32
MACD hist
-0.02
52W pos
15%
2026-10-19O ₹53.00H ₹53.00L ₹50.50C ₹50.90Vol 30,400 sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
SATTVAENGGNifty India ManufacturingNifty 500
- SATTVAENGG
- -39.8%
- Nifty 500
- -5.6%
- Nifty India Manufacturing
- -5.8%
- Vs Nifty 500
- -34.2 pp
Chart stats
19 Oct 2026- From 52W high
- -49.4%
- 52W range position
- 13%
- ATR (14)
- 6.8%
- Volume vs 20D
- 0.60x
- Avg traded value
- ₹0.3 Cr
- 20D price channel
- ₹50.5 - ₹62.9
₹100.5
₹43.5 - ₹100.5
₹3.4
Latest completed session
20-session average
54.6% annualized volatility
Research snapshot
What the evidence says now
Investable fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend argues for patience, and recent execution is mixed.
Suggested next step
Add to watchlist
Fundamental setup is interesting, but technical confirmation is weak.
U-Score
Legacy · UNDERVALUED73
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Pending data—
Revenue NDF · PAT NDF YoY
Technical
Bearish37
Price trend and sector-relative-strength timing.
Valuation
Legacy model+82.7%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence69
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 31 Mar 2026
Pending dataYoY comparison unavailable - result verdict pending data
Filed 31 Mar 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹78 Cr | NDF | +52.9% |
| EBITDA | ₹14 Cr | NDF | +75.0% |
| Operating margin | 17.0% | NDF | +0 bps |
| PAT | ₹9 Cr | NDF | +125.0% |
| PAT margin | 11.5% | NDF | +370 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 7.74
- P/B
- 1.13
- EV/EBITDA
- 5.90
- Market Cap
- 99.70Cr
Profitability
- ROE
- 19.60%
- ROCE
- 22.80%
- ROA
- 8.23%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 18.00%
- EPS 5Y
- 18.00%
- Revenue 3Y
- 20.00%
- EPS 3Y
- 45.00%
Balance Sheet
- Debt/Equity
- 0.34
- Interest Coverage
- 4.40×
- Altman Z
- 3.05
- Book Value
- 50.50
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 3/5
- OCF
- -13.00 Cr
- EPS TTM
- 7.49
Shareholding
- Promoter Hold
- 62.91%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 27%
Financial History
Updated 20/10/2026
Revenue
₹ CrLatest: 143+31.2% vs prev
Net Profit
₹ CrLatest: 13.0+44.4% vs prev
Return on Equity
%Latest: 14.8-27.8% vs prev
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 32.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~14.5% over last month) — short-term momentum negative.
- RSI(14) at 32 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 46% off 52W high · 17% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
8
RS percentile
Stage 1 Base / Transition
1M return
-16.8%
3M return
-39.8%
6M return
-26.9%
1Y return
-42.2%
RS 1D
-3
RS 20D
-23
Sector rank
#2
Industry rank
-
Stage evidence
- Price is 23.2% below the 30-week proxy without full trend alignment.
- The 30-week proxy changed +1.7% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
50-DMA
price below
200-DMA
price below
Sector
leading
Industry
unranked
Relative-strength line vs Nifty 500 (base 100)
257 observations
19 Oct 2026Value 51.12-3.78%
RS vs Nifty 50051
Valuation & peers
U-Score 73 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 73 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Top Setup
Fundamental score breakdown
U band · UNDERVALUEDValuation30/30
Growth21/25
Quality14/20
Balance Sheet11/15
Cash Flow2/10
Piotroski
6/9 (+3)
Penalties
-8
Raw sum
73
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
73/100 · legacy band UNDERVALUED
Positive drivers
- Fair-value margin of safety is positive at 82.7%.
- Valuation contributes 30/30 to the score.
- Growth contributes 21/25 to the score.
Main drags
- Penalty bucket subtracts 8 points.
- Cash flow is weaker at 2/10; verify the latest quarterly trend.
- Quality is weaker at 14/20; verify the latest quarterly trend.
Sector valuation model
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Primary lens
EV/EBITDA and PE against execution quality and margin stability.
Secondary checks
Order book, receivables, working capital, debt, operating cash flow.
Main risk check
Order wins matter only if they convert into cash and margins.
PE
7.7
PB
1.1
EV/EBITDA
5.9
ROE
19.6%
ROCE
22.8%
FCF Yield
—
Debt/Equity
0.3
MoS
+82.7%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 20 Oct 2026
v4.3-runtime-valuation
Final score
73
Previous: 73
Legacy U-Score band
UNDERVALUED
Previous: UNDERVALUED
Margin of safety
+82.7%
Previous: +82.7%
Score history
12 stored score snapshots. Latest stored move: +0 points.
20 Oct 2026
v4.3-runtime-valuation
72
72
72
72
72
72
72
73
73
73
73
73
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹92.25
+44.8% MoS
Growth-justified P/E
39.3
Growth-justified Value
₹294.36
+82.7% MoS
PEG
0.27
Comparable companies
Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
GSMFOILS
SME
GSM Foils Ltd.
Packaging
match 19
77
4.4
37.5%
+89%
DEEP VALUE
EMKAYTOOLS
SME
Emkay Taps and Cutting Tools Ltd.
Industrial Tools
match 19
64
1.1
15.7%
+91%
UNDERVALUED
PARAGON
SME
Paragon Fine and Speciality Chemical Ltd.
Specialty Chemicals
match 19
58
10.9
9.6%
+72%
FAIR VALUE
RNPL
SME
Renol Polychem Ltd.
Specialty Chemicals
match 18
67
10.6
13.6%
+75%
UNDERVALUED
CLASSICEIL
SME
Classic Electrodes (India) Ltd.
Industrial Products
match 18
81
7.1
17.9%
+82%
DEEP VALUE
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-08-23T07:18:48.074Z
Management commentary snapshot
Sattva Engineering reported strong FY26 results with revenue up 32% YoY to ₹143.2 Cr and PAT up 43% YoY to ₹13.1 Cr. Order book grew 4% YoY to ₹323 Cr by March 2026, further increasing to ₹447 Cr by May 2026, providing 3x FY26 revenue visibility.
The company delivered robust FY26 performance with significant revenue and PAT growth, supported by a healthy order book providing multi-year visibility. Expansion into new geographies and larger projects, coupled with a focus on improving working capital, supports the growth thesis, though rising debt-to-equity and cash conversion cycle warrant monitoring.
Current business mix
Revenue by segment - FY26
Latest issuer-disclosed distribution across 4 reported categories.
Water Supply Scheme (WSS)38.0%
Under Ground Sewerage System (UGSS)31.0%
Sewage Treatment Plant (STP) & Water Treatment Plant (WTP)21.0%
Other Services10.0%
Growth engines
Scaling through larger, more complex water infrastructure projects
Strategic focus on larger, higher-capacity WSS and STP projects on an EPC basis, enhancing pre-qualification for marquee tenders and offering better margins.
Expanding geographic footprint for diversified growth
Established execution track record in Tamil Nadu as a strong foundation for expansion, with entry into Karnataka and participation in key tenders such as BWSSB.
Increasing ability to bid for EPC + O&M projects
The company is increasing its ability to bid for EPC + O&M projects, which is expected to support margin and cash flow stability.
Capacity and execution
Project Wins & Execution Capability
Secured two key projects in Tamil Nadu: a 47 MLD Water Treatment Plant project worth ₹106.2 crore and an Odour Control System project worth ₹40.6 crore. Expanded Karnataka presence with 20 MLD STP (₹76.1 crore) and 10 MLD STP (₹47.8 crore) project wins.
Tailwinds
Structural demand tailwinds
Water scarcity & groundwater depletion driving need for reuse and desalination; climate volatility increasing demand for resilient water infrastructure.
Urbanization & industrial expansion
India’s population expected to cross 1.5Bn by 2030, accelerating urban water demand; industrial sector contributes 40–45% of water usage.
Policy push & capital deployment
Government initiatives like Jal Jeevan Mission, AMRUT, Smart Cities Mission, SBM 2.0, and increasing adoption of PPP models.
Risk radar
Increasing Net Debt to Equity
Net debt to equity ratio increased from 0.2x in FY25 to 0.8x in FY26.
Elongated Cash Conversion Cycle
Cash conversion cycle increased significantly from 72 days in FY25 to 113 days in FY26.
Debtor Days
Debtor days slightly increased to 108 days in FY26 from 105 days in FY25, indicating potential working capital strain.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare YOY
The presentation primarily focuses on annual (FY26 vs FY25) and half-yearly (H2 FY26 vs H2 FY25) comparisons, which are appropriate for assessing the performance of an infrastructure company with project-based revenue recognition and seasonal execution patterns.
Sector KPIs management disclosed
Revenue from operations
Revenue grew by 32% YoY in FY26 to ₹143.2 crores.
Order book
Unexecuted order book stood at ₹323 crore as of March 2026, increasing to ₹447 crore as of 15th May 2026.
Order inflow
Order inflow was ₹202 cr in FY26, up from ₹163 cr in FY25.
Book to bill
Book to bill ratio was 2.85 in FY26, up from 2.26 in FY25.
Management forward view
Revenue Growth Target
Targeting 60% revenue CAGR through FY28, implying 2.5x business scale-up from current levels.
Margin Sustainability
Aiming for sustainable EBITDA margins of 15-16% and PAT margins of 9-10% through FY27-FY28.
Funding Strategy
Planned business growth to be primarily funded through internal accruals, with incremental debt financing supported by disciplined working capital management.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Order Book | ₹447 crore (as of May 15, 2026) | Sustained growth in order book and timely execution over the next 24-30 months. |
| EBITDA Margin | 15.4% (FY26) | Maintenance of EBITDA margins within the targeted 15-16% range through FY27-FY28. |
| Cash Conversion Cycle | 113 days (FY26) | Improvement in cash conversion cycle and debtor days to reduce working capital intensity. |
| Net Debt to Equity | 0.8x (FY26) | Management of debt levels in line with internal accruals and disciplined working capital. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
69Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 59th percentile of the scored universe and 56th percentile within Industrials. Main check: cash conversion is weak at 40/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
5 docs text-extracted · 1 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
59th percentile
overall median 67 · Industrials: 56th pctile, median 68 · SME: 77th pctile, median 64
Evidence depth
Financial-only
5 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
86
strong · holding, pledge, alignment
Cash flow
40
weak · profit to cash conversion
Balance sheet
81
strong · leverage and solvency
Discipline
80
strong · capital discipline
Results
63
acceptable · quarterly consistency
Trust positives
- ▸Promoter holding is 62.9%.
- ▸Promoter pledge is zero.
- ▸ROCE is 22.8%.
- ▸OPM spread across recent quarters is 4%.
Trust risks
- ▸Operating cash flow is negative at ₹-13 Cr.
- ▸ROCE trend is -2.5%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Sattva Engineering Construction Ltd.
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Investor presentationJun 2026
Jun 2026 · PPT
Source: Nse
Annual report
Annual Report 2026
Source: Nse
Annual reportMar 2026
Sep 2026 · Shareholders meeting 12 Aug - 21st AGM on September 10, 2026 via VC/OAVM; annual report for FY2025-26 issued.
Source: Nse
Annual reportMar 2026
Sep 2026 · General Updates 12 Aug - 21st AGM on September 10, 2026; annual report and notice web links shared with shareholders.
Source: Nse
Investor presentationMar 2026
Mar 2026 · PPT
Source: Nse
Investor presentationNov 2025
Nov 2025 · PPT
Source: Nse
Investor presentationNov 2025
Nov 2025 · PPT
Source: Nse
Annual report
Annual Report 2025
Source: Nse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.