Check Before You Invest : Sarda Energy & Minerals Ltd

Q: Which industry/sub-sector does Sarda Energy & Minerals Ltd belong to?

Sarda Energy & Minerals Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q: Is Sarda Energy & Minerals Ltd a good quality company?

Sarda Energy & Minerals Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Sarda Energy & Minerals Ltd undervalued or overvalued?

Sarda Energy & Minerals Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 22.97, Historic Median: 12.66. Price to Book, Current: 3.17, Historic Median: 2.24. Price to Sales, Current: 4.8, Historic Median: 2.58. EV to EBITDA, Current: 13.72, Historic Median: 8.69

Q: Is Sarda Energy & Minerals Ltd a good buy now?

Sarda Energy & Minerals Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd revenue growth is 27.5% for FY-2025, which is above its 5-year CAGR of 19.6%, indicating faster growth.

Q: Gross Profit margin of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Gross profit margin which is the profit after deduction of direct costs, is 28.1% for FY-2025, which is in line with its 5-year median of 28.1%, indicating stable margins.

Q: Operating Profit Margin of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.35% for FY-2025, which is in line with its 5-year median of 27.35% indicating stable margins.

Q: Net Profit Margin of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Net Profit Margin is 17.45% for FY-2025, is below its 5-year median of 18.59%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 28.1, Historic Median: 28.1. Operating Profit Margin (%), Current: 27.35, Historic Median: 27.35. Net Profit Margin (%), Current: 17.45, Historic Median: 18.59

Q: Return on Asset of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Return on Asset is 10.43%, which is below its 5-year historical median of 12.6%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Return on capital employed is 16.88% for FY-2025, which is below its 5-year historical median of 18.91%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : Sarda Energy & Minerals Ltd

Snapshot

Q.1 Which industry/sub-sector does Sarda Energy & Minerals Ltd belong to?

Sarda Energy & Minerals Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q.2 Is Sarda Energy & Minerals Ltd a good quality company?

Sarda Energy & Minerals Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Sarda Energy & Minerals Ltd undervalued or overvalued?

Sarda Energy & Minerals Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	22.97	12.66
Price to Book	3.17	2.24
Price to Sales	4.8	2.58
EV to EBITDA	13.72	8.69

Q.4 Is Sarda Energy & Minerals Ltd a good buy now?

Sarda Energy & Minerals Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd revenue growth is 27.5% for FY-2025, which is above its 5-year CAGR of 19.6%, indicating faster growth.

Q.2 Gross Profit margin of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Gross profit margin which is the profit after deduction of direct costs, is 28.1% for FY-2025, which is in line with its 5-year median of 28.1%, indicating stable margins.

Q.3 Operating Profit Margin of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.35% for FY-2025, which is in line with its 5-year median of 27.35% indicating stable margins.

Q.4 Net Profit Margin of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Net Profit Margin is 17.45% for FY-2025, is below its 5-year median of 18.59%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	28.1	28.1
Operating Profit Margin (%)	27.35	27.35
Net Profit Margin (%)	17.45	18.59

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Return on Asset is 10.43%, which is below its 5-year historical median of 12.6%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Return on capital employed is 16.88% for FY-2025, which is below its 5-year historical median of 18.91%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Return on equity is 13.03% for FY-2025, which is below its 5-year historical median of 15.85%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Cash conversion cycle is 48 days, below its 5-year historical median of 54 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.6	0.74
ROE (%)	13.03	15.85
ROCE (%)	16.88	18.91
Cash Conversion Cycle	48 days	54 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Debt-to-Equity ratio is 0.26, which is lower the industry average of 0.31, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sarda Energy & Minerals Ltd?

Sarda Energy & Minerals Ltd Debt to cash flow from operations is 2.72, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Sarda Energy & Minerals Ltd?

Q.1 Promoter shareholding and pledge status of Sarda Energy & Minerals Ltd?

Promoters hold 73.16% of the Sarda Energy & Minerals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sarda Energy & Minerals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sarda Energy & Minerals Ltd vs industry peers?

Sarda Energy & Minerals Ltd revenue CAGR is 19.60%, compared to the industry median CAGR of 7.56%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	27.5	7.6
Gross Profit Growth (%)	43.8	19.2
Operating Profit Growth (%)	84.2	13.8
Net Profit Growth (%)	30.5	24.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.6	1.27
ROE (%)	13.03	8.04
ROCE (%)	16.88	11.28
Cash Conversion Cycle (days)	48	72

Valuation & price assessment

Q.1 Stock return of Sarda Energy & Minerals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 49.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	49.6%	58.7%	73.7%	40.1%

Q.2 Valuation ratios of Sarda Energy & Minerals Ltd vs historical?

The current P/E ratio of 22.97 is higher than its historical median of 12.66, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	22.97	12.66	17.36
Price to Book	3.17	2.24	1.63
Price to Sales	4.8	2.58	0.74
EV to EBITDA	13.72	8.69	10.05

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Check Before You Invest : Sarda Energy & Minerals Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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