Sarda Energy & Minerals Ltd - Stock Valuation and Financial Performance

BSE: 504614 | NSE: SARDAEN | Steel & Iron Products | Small Cap

Sarda Energy&Mineral Share Price

202.40 -4.50 -2.17%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Sarda Energy&Mineral

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Sarda Energy & Minerals stock performance -

mw4me loader
P/E Ratio (SA):
14.20
Market Cap:
7,290.8 Cr.
52-wk low:
96.7
52-wk high:
265

Is Sarda Energy & Minerals Ltd an attractive stock to invest in?

1. Is Sarda Energy & Minerals Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Sarda Energy & Minerals Ltd is a good quality company.

2. Is Sarda Energy & Minerals Ltd undervalued or overvalued?

The key valuation ratios of Sarda Energy & Minerals Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Sarda Energy & Minerals Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Sarda Energy & Minerals Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sarda Energy&Mineral:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sarda Energy & Minerals Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 7.9%11.6%5%8.2%13.1%14.6%10.8%14.4%25.7%21.5%-
Value Creation
Index
-0.4-0.2-0.6-0.4-0.10.0-0.20.00.80.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,2711,3791,0351,0261,4761,6531,4241,5952,6423,0202,864
Sales YoY Gr.-8.6%-24.9%-0.9%43.8%12.1%-13.9%12%65.6%14.3%-
Adj EPS 2.3412.75.36.55.38.117.718.114.6
YoY Gr.-74.2%-74.9%168%97%23.5%-18.9%52.9%119.3%2.1%-
BVPS (₹) 27.528.729.633.23843.44855.873.388.196.9
Adj Net
Profit
82.114336.196.4190235191292639639513
Cash Flow from Ops. 139128318121215261152199585380-
Debt/CF from Ops. 4.54.11.33.31.51.12.61.40.30.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.1%15.4%28.5%14.3%
Adj EPS 25.8%28%50.7%2.1%
BVPS13.8%18.3%22.4%20.1%
Share Price 34% 46.8% 68.8% 96.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
8.614.23.58.514.81611.615.627.522.215.8
Op. Profit
Mgn %
18.521.411.716.120.123.517.923.133.127.720.4
Net Profit
Mgn %
6.510.43.59.412.914.213.418.324.221.117.9
Debt to
Equity
0.60.50.40.30.20.20.20.10.10-
Working Cap
Days
147143176178153157219232167174119
Cash Conv.
Cycle
4561705350476465415498

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 28.49%

Net Profit is growing at healthy rate in last 3 years 50.74%

Return on Equity has declined versus last 3 years average to 15.80%

Sales growth is not so good in last 4 quarters at -3.23%

Latest Financials - Sarda Energy & Minerals Ltd.

Standalone Consolidated
TTM EPS (₹) 14.6 15.6
TTM Sales (₹ Cr.) 2,864 4,022
BVPS (₹.) 96.9 107.2
Reserves (₹ Cr.) 3,379 3,741
P/BV 2.14 1.93
PE 14.20 13.26
From the Market
52 Week Low / High (₹) 96.70 / 264.95
All Time Low / High (₹) 0.08 / 264.95
Market Cap (₹ Cr.) 7,291
Equity (₹ Cr.) 35.2
Face Value (₹) 1
Industry PE 24.8

Management X-Ray of Sarda Energy&Mineral:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Sarda Energy&Mineral

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,2711,3791,0351,0261,4761,6531,4241,5952,6423,020
Operating Expenses 1,0421,0849148611,1791,2991,1941,2261,7682,210
Manufacturing Costs2432961369399113126137159221
Material Costs6766576816679681,0279209741,4671,789
Employee Cost 53595660606968688295
Other Costs 707141415291804860105
Operating Profit 228295121165296354230369874811
Operating Profit Margin (%) 18.0%21.4%11.7%16.1%20.1%21.4%16.1%23.1%33.1%26.8%
Other Income 3540404265527111079118
Interest 63595642363536342216
Depreciation 63685147495051485466
Exceptional Items -2-126044-800-1500
Profit Before Tax 1348256162269321214382877847
Tax 59271830811063285217208
Profit After Tax 755637131188215182297660638
PAT Margin (%) 5.9%4.0%3.6%12.8%12.7%13.0%12.8%18.6%25.0%21.1%
Adjusted EPS (₹)2.11.61.03.65.26.05.18.218.318.1
Dividend Payout Ratio (%)14%19%19%11%10%8%10%9%4%8%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 9851,0311,0631,1951,3691,5661,7312,0112,6433,103
Share Capital 36363636363636363635
Reserves 9499951,0271,1591,3331,5301,6951,9752,6073,067
Minority Interest0000000000
Debt46239132032629627336522914387
Long Term Debt2572141621191109825921814383
Short Term Debt2051761572071861751061105
Trade Payables1045366761279013716514255
Others Liabilities 294305219198170152148186247259
Total Liabilities 1,8441,7801,6681,7951,9622,0812,3822,5903,1753,504

Fixed Assets

Gross Block1,1481,174671638679717741769886957
Accumulated Depreciation4204845096144191241285336399
Net Fixed Assets728690621542535526499484551557
CWIP 65393630312735666828
Investments 4124514595766927218499131,1611,102
Inventories276335177252304300370439429549
Trade Receivables50544150623962789390
Cash Equivalents 46211234323241
Others Assets268210334344337464563607850938
Total Assets 1,8441,7801,6681,7951,9622,0812,3822,5903,1753,504

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 139128318121215261152199585380
PBT 1348256162269321214382877847
Adjustment 871107279365432-214-3
Changes in Working Capital -52-43205-105-30-5-35-86-82-241
Tax Paid -31-21-14-15-60-109-59-77-213-222
Cash Flow From Investing Activity 9-3-119-77-91-178-191-26-418-165
Capex -29-20-5-1-33-41-38-78-144-19
Net Investments -10-393-900000-224-151
Others 4856-11614-58-136-15451-495
Cash Flow From Financing Activity -109-169-200-43-124-8341-173-156-227
Net Proceeds from Shares 0101000000
Net Proceeds from Borrowing -79-72-105-52-50-20166-40-75-60
Interest Paid -56-60-58-44-38-34-36-36-29-17
Dividend Paid -11-11-180-14-18-18-18-27-27
Others 36-29-2053-21-11-70-80-24-123
Net Cash Flow 38-44-11002-112-12
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)7.915.543.5711.6214.6614.6411.0615.8528.3522.22
ROCE (%)12.358.917.3813.3118.5420.0512.5318.9135.2928.5
Asset Turnover Ratio0.770.840.670.660.810.820.640.640.920.9
PAT to CFO Conversion(x)1.852.298.590.921.141.210.840.670.890.6
Working Capital Days
Receivable Days15121514131113161211
Inventory Days65738168676786936059
Payable Days56443239383945573820

Sarda Energy & Minerals Ltd Stock News

Sarda Energy & Minerals Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sarda Energy&Mineral on 28-Mar-2024 16:01 is ₹202.4.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Sarda Energy&Mineral stood at ₹7,290.8.
The latest P/E ratio of Sarda Energy&Mineral as of 28-Mar-2024 16:01 is 14.20.
The latest P/B ratio of Sarda Energy&Mineral as of 28-Mar-2024 16:01 is 2.14.
The 52-week high of Sarda Energy&Mineral is ₹264.9 and the 52-week low is ₹96.70.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Sarda Energy&Mineral is ₹2,864 ( Cr.) .

About Sarda Energy & Minerals Ltd

Sarda Energy & Minerals (SEML) was established in 1979 when the Sarda Group took over Raipur Alloys and Steel Limited (RASL).It is one of the lowest cost producers of steel (sponge iron, billets, ingots, TMT bars) and one of the largest manufacturers and exporters of ferro alloys in India. Headquartered in Raipur, Chhattisgarh, the company merged with Chhattisgarh Electricity Company Limited (CECL) in 2007 with a vision to becoming a leading energy and minerals company.

Over the last three decades the company has continuously diversified its product portfolio to include many customized value added products. The company firmly believes in benchmark product quality, customer centric approach, people focus, ethical business practices and good corporate citizenship. Building on these values, SEML has become the supplier of choice for many domestic and international customers across more than 60 countries.

SEML differentiates itself from its peers by not being just another steel company. It foresaw the importance and emergence of energy and minerals as two critical ingredients for developing economies and particularly for India. Synergy in Energy became the basis of all its future endeavors.

SEML is one of the very few companies to become completely self-sufficient in terms of its energy requirements and is well on its way to achieve self sufficiency in other mineral resources. The company has acquired iron ore, coal and manganese mines in India and is aggressively looking for mineral resources across the globe.

SEML is listed on the Bombay Stock exchange and is traded as SARDAEN.

Product range of the company includes:

  • Sponge Iron (DRI)
  • Ingots
  • Billets 
  • TMT Bars
  • Ferro Alloys 
  • Eco-Bricks
  • Mining
  • Power

Group Companies:

  • Sarda Energy & Minerals Hong Kong Limited (SEMHL) SEMHL was incorporated as a wholly owned subsidiary of SEML in Hong Kong during 2007-08. The primary focus of the company would be to establish a strong international trading arm. China being a major manufacturing hub and an important destination of international trade, a representative office has also been set up in Beijing.
  • Sarda Global Venture Pte Limited Another wholly owned subsidiary of SEML was established in Singapore during 2007-08 for business related acquisitions. The company will actively seek mineral resources acquisitions internationally.
  • Parvatiya Power Private Limited Parvatiya Power was incorporated for implementation of hydro power plants. Presently, 4.8 MW Loharkhet Hydro Power Project has been installed and commissioned in February 2008. The Project is located near village Munar of Bageshwar district in the state of Uttaranchal. It is a run-of-the-river scheme for power generation by exploiting potential of Sarju River, a tributary of Kali Ganga River.
  • Chhattisgarh Hydro Power Private Limited The company was established in the year 2005 for setting up a 24 MW Gullu Hydro Power Plant in the state of Chhattisgarh. It has also identified other potential sites in the state and is planning to develop the same. The Company is currently involved in land acquisition, obtaining statutory clearances and identifying contractors for civil and hydro mechanical works.
  • Madhya Bharat Power Corporation Limited The Company was incorporated for implementation of 96 MW Rongni Chu hydro power project in Sikkim. The project envisages utilizing the flow of the Rongni Chu, a tributary to the Teesta River for the generation of power in the run of the river scheme. The Company is currently in the process of identifying contractors for civil and hydro mechanical work of the project. The work of land acquisition and all project clearances are in full swing.
  • Raipur Infrastructure Company Ltd. The JV Company was incorporated for operating a private railway siding for unloading the raw materials being transported through the railways, the stake in the company is 33 percent.
  • Madanpur South Coal Company Ltd. The JV Company has been allotted a coal block in the Madanpur area of Chhattisgarh in consortium. The company is in the final stages of receiving of various clearances and permissions to commence its operations. SEML has 24.91 percent share in the joint venture.
  • Chhattisgarh Investments Ltd. Chhattisgarh Investments Ltd. was incorporated two decades ago as a closely held public limited company. The Company has interests in investments, socio-forestry and horticulture, with over 800 acres agricultural estate at Kharora, about 40 Kms. from Raipur. About one million trees of various species such as Teak, Hybrid Eucalyptus, Sobabul, Khamar, Bamboo etc have been planted.
  • Chhattisgarh Bricks Private Ltd. The company has been formed to manufacture fly-ash bricks utilizing fly-ash generated from the company's captive power plant. The company is yet to commence business activity.

Awards & Achievements:

SEML has been ranked among top 500 most valuable private sector Indian companies by Business Today

Milestones:

  • 1979  The Sarda Group took over Raipur Alloys and Steel Limited (RASL) (earlier Raipur Wires & Steel Limited), a sick and closed entity.
  • 1981  Commissioned a 10 MT electric arc furnace to produce ingots.
  • 1984 Installed a continuous casting machine/ billet casting machine, the fourth company in India to do so at that time.
  • 1987 Implemented the first automated oxygen lancing plant in Madhya Pradesh to feed oxygen in the arc furnace.
  • 1990 Implemented the first automated ultra-high power furnace (25 MTPD) and ladle refining furnace (25 MTPD) in Madhya Pradesh.
  • 1993 Commissioned first sponge iron plant (100 MTPD) with modern SIL technology.
  • 1995  Commissioned second sponge iron plant (100 MTPD).
  • 2001 Commissioned a 24-MW captive power plant in Chhattisgarh Electricity Company Limited (CECL).CECL installed 2x9-MVA closed-top ferro alloys furnaces.RASL commenced production in 2x6 MT induction furnaces.
  • 2002 Implemented an integrated Oracle-based ERP solution.
  • 2003 Commenced a fly ash brick plant of 6000 units per day to utilize hazardous fly ash from captive power plant.CECL installed third 9 MVA ferro alloys furnace.
  • 2004 Commenced extraction from RASL iron ore mines in Rajnandgaon (Dongarbore, Chhattisgarh).
  • RASL augmented its sponge iron capacity through another 500 MTPD kiln.Doubled the fly ash brick-making capacity to 240 lakh units per annum.
  • 2005 CECL installed fourth 9 MVA ferro alloys furnace.CECL installed second 24 MW power plant.RASL achieved QMS certification of ISO 9001:2000.
  • 2006 Augmented steel-making capacity by 100,000 MTPA ( 2X15 tonnes).Installed the fifth 9 MVA ferro alloys furnace.Achieved the coveted Star Export House status from the Government of India.
  • 2007 Sarda Energy & Minerals Limited came into existence on 2 August 2007 following the merger of CECL with RASL.
  • 2008 Increased steel-making capacity by another 100,000 TPA (2x15 tonnes). Commissioned a 4.8 MW hydro power project through an SPV. Implemented SAP ERP system.
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