Sanghvi Movers Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Sanghvi Movers Ltd trades at ₹427, in a confirmed uptrend and 15 weeks into that stage. That is +11.9% against its own 200-day average. It sits at 75% of a 52-week range of ₹235 to ₹489. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 27 straight weeks.

Today the stock is in a confirmed uptrend — week 15 of stage 2, confirmed. At ₹427 it trades +11.9% versus its 200-day average and sits at 75% of its 52-week range (₹235–₹489).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +216% while the NIFTY 500 moved +267% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 27 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Sanghvi Movers Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: MID_EXPANSION. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. A lower-margin renewable mix and temporary credit costs are masking an expanding crane-and-renewables revenue base, but the case depends on collections, margin repair and disciplined deployment of the revised capital plan.

What is proven. A lower-margin renewable mix and temporary credit costs are masking an expanding crane-and-renewables revenue base, but the case depends on collections, margin repair and disciplined deployment of the revised capital plan.

What is not proven yet. The thesis breaks if revenue growth continues but operating margin stays at or below the latest level while aged receivables and the capital plan both rise, because incremental fleet and renewable revenue would not be converting into acceptable returns.

🚨 What would change our mind. The thesis breaks if revenue growth continues but operating margin stays at or below the latest level while aged receivables and the capital plan both rise, because incremental fleet and renewable revenue would not be converting into acceptable returns.

Layer 1 read, 22 August 2026 — KEEP. Sanghvi's margin fell because a lower-margin business was bolted on — absolute profit kept rising. The screen reads a 33% operating margin at the 15th percentile of history and calls the stock cheap on normalised earnings. That normaliser is wrong: renewable engineering is now 37% of revenue at a guided 12-15% margin while core cranes still earn 47%, so the percentage falls by construction — and absolute operating profit still grew from Rs 88 Cr in Jun 2023 to Rs 125 Cr in Jun 2026 on revenue up from Rs 146 Cr to Rs 380 Cr. Management own FY27 guidance of Rs 525-575 Cr EBITDA on Rs 1,400-1,500 Cr of revenue settles it — they expect the mid-thirties, not a return to 46%. The real question is not margin but return on the Rs 652 Cr of new cranes being bought with debt while the Gulf yield…

What would change Layer 1’s mind. A second consecutive quarter with consolidated operating margin at or below the June 2026 33% level WHILE group receivable days stay above 116 and the capex pool rises again — that is the company own falsification condition and it would mean the new fleet and the renewable revenue are not converting into acceptable returns, flipping this to DROP. Conversely, core-crane margin printing 51% with Gulf collections normalising after the July improvement would take it to P1.

🚨 Layer 2 read, 22 August 2026 — DROP. Customer cash is already cutting margins just as the sector adds more capacity. Sanghvi's own call says core crane margin fell and expected-credit-loss ageing took two points; the external sector review says all four companies are refusing to stand behind forward margins because cash is stuck. The sector is also TOPPING and adding supply without current institutional support, so this is a direct external challenge to L1 rather than a valuation rejection.

What would change Layer 2’s mind. Reverse DROP only after two consecutive quarters show core crane-margin recovery and lower aged-receivable charges while sector capex_read is no longer SUPPLY_FLOOD.

The test written in advance. The thesis breaks if revenue growth continues but operating margin stays at or below the latest level while aged receivables and the capital plan both rise, because incremental fleet and renewable revenue would not be converting into acceptable returns. — the thesis as written as stated by the next result.

The test written in advance. Margin remains below normalized level — Margin remains below normalized level Operating margin at or below the Jun 2026 level for two consecutive quarters. by the next result.

The test written in advance. Capital-plan revision and deployment risk — Capital-plan revision and deployment risk A further increase in the approved capital pool or a delayed second-half deployment schedule. by the next result.

What the company does. Revenue continues to expand while valuation is below its long-run median, yet the latest quarter showed a further margin decline. The core crane business, renewables execution and international fleet deployment provide multiple revenue paths, but each requires delivery rather than further guidance changes. The investment case improves only if collections normalize and the capital plan earns returns without another reset in international yields.

🚨 What the surface reading misses. The surface reading is: A below-median trailing multiple can look automatically cheap. The research reads it further: Reported earnings are depressed by an operating margin below the normalized estimate, so the normalized multiple is lower than the trailing multiple.

🚨 What the surface reading misses. The surface reading is: A low operating margin suggests deteriorating business economics. The research reads it further: Management attributes the latest core-crane decline to expected-credit-loss ageing, foreign exchange, incentives and ancillary-equipment mix; renewable scaling also changes the consolidated mix.

Lever 6 · Order-book wins — BUILDING. The secured order book and renewable pipeline provide visibility, provided project readiness converts into billed work. What proves it keeps working: Executable domestic and renewable revenue base. It stops working if Customer site readiness, OEM supply or right-of-way delays prevent renewable orders from converting after the monsoon period.

Lever 10 · New geographies — BUILDING. GCC yields remain above the India-and-Botswana level, but the revised yield and smaller pipeline make this a proof point rather than a settled advantage. What proves it keeps working: International fleet earnings. It stops working if GCC yield weakens further or supply-chain friction delays the revenue-generating regional fleet.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Sanghvi Movers Ltd reported ₹380 Cr of revenue in the Jun 26 quarter, +39.2% year on year. That is the 5th straight quarter of year-on-year growth. Over 5 years it has compounded at 36.7% a year. The last full year, FY26, came in at ₹1,070 Cr. The last four reported quarters add to ₹1,177 Cr.

Why this happened. Management reports a secured order book executable within FY27 and a larger inquiry pipeline across sectors. Renewable engineering contributed 37% of latest-quarter revenue, creating a second revenue engine beside crane rental.

FY26 revenue came in at ₹1,070 Cr (+36.8% on the year), capping 5 years at 36.7% compound. The latest quarter (Jun 26) printed ₹380 Cr, +39.2% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +29.7% growth against the decade's 36.7% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +30.2% over the last 4 quarters against +39.6%/yr over the last 8 — rolling over; TTM profit +19.9% vs +5.1%/yr — accelerating.

FY26-Q4. revenue ₹351 Cr and profit ₹69 Cr as reported.

FY27-Q1. revenue ₹380 Cr and profit ₹65 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Sanghvi Movers Ltd's operating margin is 33.0% in the Jun 26 quarter, −3.0 percentage points against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 37.0% to 56.0%. The current quarter is running below every full year in that window.

Why this happened. Management attributes the core-crane margin decline partly to aged receivables and expects recovery as collections progress. July collections were cited as an early sign, but this must be confirmed by a lower receivables burden and a better reported margin.

The latest quarter's operating margin is 33.0%, −3.0 pp against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 37.0%–56.0%.

🚨 Why the margin moved: operating margin went −3.4 pp year on year while gross margin went +0.0 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

FY26-Q4. revenue ₹351 Cr and profit ₹69 Cr as reported.

FY27-Q1. revenue ₹380 Cr and profit ₹65 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Sanghvi Movers Ltd earned ₹65.0 Cr of net profit in the Jun 26 quarter, +30.0% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹184 Cr. That is 17.1% of the quarter's revenue. The same quarter a year earlier earned ₹50.0 Cr.

Jun 26 profit was ₹65.0 Cr, +30.0% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹184 Cr (+17.2%).

Why profit moved: revenue contributed +39.2% and the margin −3.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +17.5% vs revenue +29.7%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

FY26-Q4. revenue ₹351 Cr and profit ₹69 Cr as reported.

FY27-Q1. revenue ₹380 Cr and profit ₹65 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 154% of Sanghvi Movers Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹278 Cr of operating cash against ₹184 Cr of profit. After ₹435 Cr of capital spending, ₹−157 Cr was left as free cash.

FY26: operating cash of ₹278 Cr against reported profit of ₹184 Cr, leaving free cash of ₹−157 Cr after ₹435 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 154% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 154%: the cash cycle held roughly steady between FY22 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: the bigger cash user is investment — capital spending ran 2.6× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Sanghvi Movers Ltd's cash conversion cycle runs 92 days in FY26, up from 86 days in FY22. Capital spending ran ₹652 Cr over the last 2 years. At FY26 sales of ₹1,070 Cr each day of that cycle holds about ₹2.9 Cr, so roughly ₹270 Cr sits inside the business at any moment.

Why this happened. The approved FY27 pool includes capital already deployed in the first quarter, with the balance scheduled for the second half. The return case depends on equipment delivery, commissioning and customer deployment rather than approval alone.

FY26: debtors at 92 days (an asset-light business — no inventory to speak of) — for a full cycle of 92 days, looser than FY22's 86.

In money terms: at FY26 sales of ₹1,070 Cr, each day of the cycle holds about ₹2.9 Cr — so the 92-day loop keeps roughly ₹270 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹652 Cr over the last 2 fiscal years against ₹253 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹9.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Sanghvi Movers Ltd earns a ROCE of 16% in FY26. Return on invested capital clears the cost of that capital by +0.1 percentage points, so growth here adds value rather than only size. The wiring behind it is 17.2% net margin on 0.46× asset turns.

FY26 ROCE is 16%.

Why the return is what it is — the wiring (FY26): 17.2% net margin × 0.46× asset turns × 1.79× balance-sheet leverage ≈ 14.2% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 12.1% − 12.0% = a +0.1 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Sanghvi Movers Ltd carries total debt of ₹674 Cr against shareholder equity of ₹1,310 Cr as of Mar 26, a debt-to-equity of 0.51. On the annual view that ratio went from 0.23 in FY22 to 0.51 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹674 Cr against shareholder equity of ₹1,310 Cr — a debt-to-equity of 0.51. On the annual view, debt-to-equity went from 0.23 (FY22) to 0.51 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions cut 1.9 points of Sanghvi Movers Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 1.4% of the company. Foreign institutions moved −0.6 points over the same window, to 1.8%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −1.9 points over 8 quarters to 1.4%; Foreign institutions: −0.6 points over 8 quarters to 1.8%; Promoters: +0.0 points over 8 quarters to 47.3%.

🚨 Why the register moved: domestic institutions drove it (−1.9 points), alongside foreign institutions (−0.6 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Sanghvi Movers Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Sanghvi Movers Ltd trades at 18.0× P/E, near the bottom of its own range — cheaper only 16% of the time. Its long-run median P/E is 23.7×, measured across 4.3 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 18.0× is near the bottom of its own range — cheaper only 16% of the time, against a long-run median of 23.7× measured over 4.3 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +17.8% against a +17.4% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 3y, of the +6.2%/yr price move, ~+13.8%/yr came from earnings growth and ~−7.6 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 23 August 2026 price, Sanghvi Movers Ltd was paying for profit growth of about 12.3% a year. Today the market pays 18.0× P/E, the 16th percentile of its own 4-year range.

What the two numbers say together. The multiple is low against its own past, and the growth the price is paying for is the whole of what a buyer is backing.

How to hold this number: it is a reading of one day's price, taken on 23 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Turning around Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Sanghvi Movers Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −7.8% at the trough to +19.9%, a 4-quarter improving streak, ROCE holding at 17.5%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: growth inflections are where re-ratings start — the curves say a turn is forming, so the question becomes whether the next quarters confirm it.

4-Factor Sector Score

60.1/100 — rank 1 of 4 in Capital Goods - EPC/Cranes · 97% evidence confidence

Sanghvi Movers Ltd scores 60.1 out of 100 against the 4 companies it is compared with in Capital Goods - EPC/Cranes, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 20.2 + 15.5 + 13.1 + 11.3 = 60.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Sanghvi Movers Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

KSA Crane Yield Guidance Reduced · 3 August 2026. In May 2026, management described Middle East yield as upwards of 4.5% and remained committed despite the West Asia disruption. In Aug 2026, management reported GCC yield of 4.10% and reset its forward expectation to 4%, a roughly 9%-11% reduction with no reconciliation of why the prior yield outlook no longer holds.

Unexplained Increase in FY27 Capex Pool · 3 August 2026. The May 2026 call disclosed Rs 123 crores of carried-forward capex, plus Rs 190 crores in India and Rs 200 crores in KSA, implying approximately Rs 513 crores for FY27. The latest call increased the FY27 pool to Rs 652 crores, approximately 27% higher, and shifted the stated deployment to the second half without explaining the additional capital requirement or reconciling the revised plan.

Middle East Pipeline Has Been Reduced · 3 August 2026. In May 2026, management cited nearly $50 million of Middle East inquiries over the next 24 months. The latest call cited a visible 0-24 month pipeline of approximately $38 million, a roughly 24% reduction, without reconciling whether projects were cancelled, delayed, or excluded from the revised scope; the latest call's reference to temporary supply-chain disruption does not quantify its impact.

Global Competitive Ranking Changed Without Explanation · 3 August 2026. The May 2026 call identified Sanghvi Movers as the fifth-largest crane rental company in the world. The latest call presented the company as third-largest and management validated the ranking source rather than explaining the two-position change or whether the methodology had changed, creating a material question about the company's stated competitive position.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions