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Check Before You Invest : Sar Auto Products Ltd

BSE: 538992 NSE: ISIN: INE002E01010
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Sar Auto Products Ltd belong to?
Sar Auto Products Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Sar Auto Products Ltd a good quality company?
Sar Auto Products Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Sar Auto Products Ltd undervalued or overvalued?
Sar Auto Products Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Sar Auto Products Ltd a good buy now?
Sar Auto Products Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Sar Auto Products Ltd?
Sar Auto Products Ltd revenue growth is -30.3% for FY-2025 , which is below its 5 year CAGR of 15.5% , indicating slower growth.
Q.2 Gross Profit margin of Sar Auto Products Ltd?
Sar Auto Products Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.1% for FY-2025 , which is in line with its 5 year median of 20.1% , indicating stable margins.
Q.3 Operating Profit Margin of Sar Auto Products Ltd?
Sar Auto Products Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.31% for FY-2025 , which is below its 5 year median of 16.75% indicating decreasing margins.
Q.4 Net Profit Margin of Sar Auto Products Ltd?
Sar Auto Products Ltd Net Profit Margin is 2.99% for FY-2025 , is below with its 5 year median of 5.82%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 20.1 20.1
Operating Profit Margin 13.31 16.75
Net Profit Margin 2.99 5.82
Q.5 Return on Asset of Sar Auto Products Ltd?
Sar Auto Products Ltd Return on Asset is 1.18%, which is below its 5 year historical median of 2.85%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Sar Auto Products Ltd?
Sar Auto Products Ltd Return on equity is 2.44% for FY-2025 , which is below its historical median of 4%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Sar Auto Products Ltd?
Sar Auto Products Ltd Return on capital employed is 2.51% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Sar Auto Products Ltd?
Sar Auto Products Ltd Cash conversion cycle is 60 days, below its historical median of 106 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.39 0.51
ROE 2.44 4
ROCE 2.51 4.76
Cash Conversion Cycle 60 days 106 days
Q.9 Debt to Equity ratio of Sar Auto Products Ltd?
Sar Auto Products Ltd Debt-to-Equity ratio is 1.05 , which is above with the industry average of 0.4 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Sar Auto Products Ltd?
Sar Auto Products Ltd Debt to cash flow from operations is 52.04 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sar Auto Products Ltd?
Promoters hold 74.67% of the Sar Auto Products Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sar Auto Products Ltd vs industry peers?
Sar Auto Products Ltd revenue CAGR is 15.49% , compared to the industry median CAGR of 11.82% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 14 492.3
Gross Profit 2.8 44.4
Operating Profit 2 47
Net Profit - 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.39 1.23
ROE 2.44 11.57
ROCE 2.51 13.36
Cash Conversion Cycle (days) 59.61 47

Valuation & price assessment

Q.1 Stock return of Sar Auto Products Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 28.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 28.7% 53% 35.9% 11.9%
Q.3 Valuation ratios of Sar Auto Products Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 9375.9 189.71 39.31
Price to Book 59.06 14.45 2.88
Price to Sales 99.36 22.53 1.29
EV to EBITDA 405.74 82.46 11.85

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