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Check Before You Invest : Sarthak Industries Ltd

BSE: 531930 NSE: SARTHAKIND ISIN: INE074H01012
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Sarthak Industries Ltd belong to?
Sarthak Industries Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Sarthak Industries Ltd a good quality company?
Sarthak Industries Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Sarthak Industries Ltd undervalued or overvalued?
Sarthak Industries Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Sarthak Industries Ltd a good buy now?
Sarthak Industries 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 Sarthak Industries Ltd?
Sarthak Industries Ltd revenue growth is 571.5% for FY-2025 , which is above its 5 year CAGR of 16.4% , indicating faster growth.
Q.2 Gross Profit margin of Sarthak Industries Ltd?
Sarthak Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 2% for FY-2025 , which is below its 5 year median of 2.7% , indicating decreasing margins.
Q.3 Operating Profit Margin of Sarthak Industries Ltd?
Sarthak Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.87% for FY-2025 , which is above its 5 year median of 1.55% indicating increasing margins.
Q.4 Net Profit Margin of Sarthak Industries Ltd?
Sarthak Industries Ltd Net Profit Margin is 1.38% for FY-2025 , is in line with with its 5 year median of 1.38%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 2 2.7
Operating Profit Margin 1.87 1.55
Net Profit Margin 1.38 1.38
Q.5 Return on Asset of Sarthak Industries Ltd?
Sarthak Industries Ltd Return on Asset is 4.44(x), which is above its 5 year historical median of 2.25(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Sarthak Industries Ltd?
Sarthak Industries Ltd Return on equity is 6.86% for FY-2025 , which is above its historical median of 4.36%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Sarthak Industries Ltd?
Sarthak Industries Ltd Return on capital employed is 11.06% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Sarthak Industries Ltd?
Sarthak Industries Ltd Cash conversion cycle is 20 , below its historical median of 20 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 3.21 2.04
ROE 6.86 4.36
ROCE 11.06 8.59
Cash Conversion Cycle 20 20
Q.9 Debt to Equity ratio of Sarthak Industries Ltd?
Sarthak Industries Ltd Debt-to-Equity ratio is 0.13 , which is above with the industry average of 0.03 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Sarthak Industries Ltd?
Sarthak Industries Ltd Debt to cash flow from operations is -0.36 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sarthak Industries Ltd?
Promoters hold 35.81% of the Sarthak Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sarthak Industries Ltd vs industry peers?
Sarthak Industries Ltd revenue CAGR is 16.42% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 204.3 13.3
Gross Profit 4.1 0.4
Operating Profit 3.5 0
Net Profit 2.8 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 3.21 0.5
ROE 6.86 2.03
ROCE 11.06 3.6
Cash Conversion Cycle 20.43 41

Valuation & price assessment

Q.1 Stock return of Sarthak Industries Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 21% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 21% 27.7% -1% -3.9%
Q.3 Valuation ratios of Sarthak Industries Ltd vs historical?
The current P/E is lower 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 9.22 39.28 21.75
Price to Book 0.53 0.77 1.55
Price to Sales 0.08 0.51 1.87
EV to EBITDA 5.9 11.01 13.67

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