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Check Before You Invest : Shera Energy Ltd

BSE: 0 NSE: SHERA ISIN: INE0MM001019
  |   Sector:  Metals & Mining   |   Industry:  Metal - Non Ferrous

Snapshot

Q.1 Which industry/sub-sector does Shera Energy Ltd belong to?
Shera Energy Ltd belongs to the Metals & Mining sector, operating specifically within the Metal - Non Ferrous segment.
Q.2 Is Shera Energy Ltd a good quality company?
Shera Energy Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Shera Energy Ltd undervalued or overvalued?
Shera Energy Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Shera Energy Ltd a good buy now?
Shera Energy 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 Shera Energy Ltd?
Shera Energy Ltd revenue growth is 36.5% for FY-2025 , which is above its 5 year CAGR of 19.5% , indicating faster growth.
Q.2 Gross Profit margin of Shera Energy Ltd?
Shera Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.6% for FY-2025 , which is above its 5 year median of 1.3% , indicating increasing margins.
Q.3 Operating Profit Margin of Shera Energy Ltd?
Shera Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.14% for FY-2025 , which is below its 5 year median of 3.77% indicating decreasing margins.
Q.4 Net Profit Margin of Shera Energy Ltd?
Shera Energy Ltd Net Profit Margin is 1.09% for FY-2025 , is above with its 5 year median of 0.87%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 1.6 1.3
Operating Profit Margin 3.14 3.77
Net Profit Margin 1.09 0.87
Q.5 Return on Asset of Shera Energy Ltd?
Shera Energy Ltd Return on Asset is 3.11%, which is above its 5 year historical median of 2.21%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Shera Energy Ltd?
Shera Energy Ltd Return on equity is 8.7% for FY-2025 , which is above its historical median of 6.57%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Shera Energy Ltd?
Shera Energy Ltd Return on capital employed is 14.33% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Shera Energy Ltd?
Shera Energy Ltd Cash conversion cycle is 45 days, below its historical median of 52 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.86 2.61
ROE 8.7 6.57
ROCE 14.33 16.2
Cash Conversion Cycle 45 days 52 days
Q.9 Debt to Equity ratio of Shera Energy Ltd?
Shera Energy Ltd Debt-to-Equity ratio is 0.82 , which is above with the industry average of 0.37 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Shera Energy Ltd?
Shera Energy Ltd Debt to cash flow from operations is 9.07 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shera Energy Ltd?
Promoters hold 61.72% of the Shera Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Shera Energy Ltd vs industry peers?
Shera Energy Ltd revenue CAGR is 19.46% , compared to the industry median CAGR of 1.76% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 859.3 156.7
Gross Profit 13.7 4.2
Operating Profit 27 4.1
Net Profit 9 2.2
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.86 2.44
ROE 8.7 5.38
ROCE 14.33 9.07
Cash Conversion Cycle (days) 45.07 54

Valuation & price assessment

Q.1 Stock return of Shera Energy Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 19.24% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - 19.2% -15.9%
Q.3 Valuation ratios of Shera Energy 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 34.5 61.87 24.79
Price to Book 2.42 4.92 2.38
Price to Sales 0.38 0.69 0.58
EV to EBITDA 13.17 17.68 11.82

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