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Check Before You Invest : Sarda Energy & Minerals Ltd

BSE: 504614 NSE: SARDAEN ISIN: INE385C01021
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

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 10 year financial track record.
Q.3 Is Sarda Energy & Minerals Ltd undervalued or overvalued?
Sarda Energy & Minerals Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
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

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 with its 5 year median of 18.59%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 28.1 28.1
Operating Profit Margin 27.35 27.35
Net Profit Margin 17.45 18.59
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 Equity (ROE) of Sarda Energy & Minerals Ltd?
Sarda Energy & Minerals Ltd Return on equity is 13.03% for FY-2025 , which is below its historical median of 15.85%, indicating the business is making worse use of its shareholders capital.
Q.7 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 above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Sarda Energy & Minerals Ltd?
Sarda Energy & Minerals Ltd Cash conversion cycle is 48 days, below its historical median of 54 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.6 0.74
ROE 13.03 15.85
ROCE 16.88 18.91
Cash Conversion Cycle 48 days 54 days
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 with the industry average of 0.32 , 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

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)

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 7.41% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 3,484.2 364.5
Gross Profit 979 11.6
Operating Profit 941 15
Net Profit 608 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.6 1.27
ROE 13.03 8.12
ROCE 16.88 11.38
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.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 49.6% 69.1% 73.8% 24.7%
Q.3 Valuation ratios of Sarda Energy & Minerals 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 23.3 6.64 23.93
Price to Book 3.21 0.58 1.46
Price to Sales 4.87 0.83 0.74
EV to EBITDA 13.9 5.49 9.89

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