Check Before You Invest : Sharp Chucks & Machines Ltd

Snapshot

Q.1 Which industry/sub-sector does Sharp Chucks & Machines Ltd belong to?

Sharp Chucks & Machines Ltd belongs to the Automobiles sector, operating specifically within the Castings/Forgings segment.

Q.2 Is Sharp Chucks & Machines Ltd a good quality company?

Sharp Chucks & Machines Ltd is a weak quality company, based on a inconsistent 6-year financial track record.

Q.3 Is Sharp Chucks & Machines Ltd undervalued or overvalued?

Sharp Chucks & Machines Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Sharp Chucks & Machines Ltd a good buy now?

Sharp Chucks & Machines Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Sharp Chucks & Machines Ltd?

Sharp Chucks & Machines Ltd revenue growth is 21.8% for FY-2025, which is above its 5-year CAGR of 16.83%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Sharp Chucks & Machines Ltd?

Sharp Chucks & Machines Ltd Return on capital employed is 13.06% for FY-2025, which is above its 5-year historical median of 11.29%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Sharp Chucks & Machines Ltd?

Sharp Chucks & Machines Ltd Return on Asset is 3.54%, which is above its 5-year historical median of 2.85%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sharp Chucks & Machines Ltd?

Sharp Chucks & Machines Ltd Return on equity is 11.31% for FY-2025, which is above its 5-year historical median of 10.17%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Sharp Chucks & Machines Ltd?

Sharp Chucks & Machines Ltd Cash conversion cycle is 106 days, below its 5-year historical median of 132 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	1.3	1.05
ROE	11.31	10.17
ROCE	13.06	11.29
Cash Conversion Cycle	106 days	132 days

Q.6 Gross Profit margin of Sharp Chucks & Machines Ltd?

Sharp Chucks & Machines Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.9% for FY-2025, which is below its 5-year median of 6.4%, indicating decreasing margins.

Q.7 Operating Profit Margin of Sharp Chucks & Machines Ltd?

Sharp Chucks & Machines Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.77% for FY-2025, which is in line with its 5-year median of 11.26% indicating stable margins.

Q.8 Net Profit Margin of Sharp Chucks & Machines Ltd?

Sharp Chucks & Machines Ltd Net Profit Margin is 3.24% for FY-2025, is above with its 5-year median of 2.98%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	5.9	6.4
Operating Profit Margin	11.77	11.26
Net Profit Margin	3.24	2.98

Q.9 Debt to Equity ratio of Sharp Chucks & Machines Ltd?

Sharp Chucks & Machines Ltd Debt-to-Equity ratio is 1.48, which is above with the industry average of 0.38, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sharp Chucks & Machines Ltd?

Sharp Chucks & Machines Ltd Debt to cash flow from operations is -10.03, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sharp Chucks & Machines Ltd?

Promoters hold 68.25% of the Sharp Chucks & Machines Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sharp Chucks & Machines Ltd vs industry peers?

Sharp Chucks & Machines Ltd revenue CAGR is 16.83%, compared to the industry median CAGR of 11.75%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	21.8	11.8
Gross Profit Growth	13.3	22.1
Operating Profit Growth	20.8	16.7
Net Profit Growth	33.3	29.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.3	1.2
ROE	11.31	9.88
ROCE	13.06	12.4
Cash Conversion Cycle (days)	105.61	84

Valuation & price assessment

Q.1 Stock return of Sharp Chucks & Machines Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 32.58% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	32.6%

Q.3 Valuation ratios of Sharp Chucks & Machines Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	24.65	20.33	21.84
Price to Book	2.4	1.88	2.46
Price to Sales	0.8	0.62	1.48
EV to EBITDA	10.27	8.58	11.88

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