Check Before You Invest : Sharat Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Sharat Industries Ltd belong to?

Sharat Industries Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Aquaculture segment.

Q.2 Is Sharat Industries Ltd a good quality company?

Sharat Industries Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Sharat Industries Ltd undervalued or overvalued?

Sharat Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Sharat Industries Ltd a good buy now?

Sharat 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 Sharat Industries Ltd?

Sharat Industries Ltd revenue growth is 25.9% for FY-2025, which is above its 5-year CAGR of 13.73%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Sharat Industries Ltd?

Sharat Industries Ltd Return on capital employed is 11.88% for FY-2025, which is above its 5-year historical median of 10%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Sharat Industries Ltd?

Sharat Industries Ltd Return on Asset is 4.12%, which is above its 5-year historical median of 2.92%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sharat Industries Ltd?

Sharat Industries Ltd Return on equity is 9.02% for FY-2025, which is above its 5-year historical median of 7.22%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Sharat Industries Ltd?

Sharat Industries Ltd Cash conversion cycle is 127 days, in line with its 5-year historical median of 124 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.58	1.52
ROE	9.02	7.22
ROCE	11.88	10
Cash Conversion Cycle	127 days	124 days

Q.6 Gross Profit margin of Sharat Industries Ltd?

Sharat Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.9% for FY-2025, which is above its 5-year median of 4%, indicating increasing margins.

Q.7 Operating Profit Margin of Sharat Industries Ltd?

Sharat Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.51% for FY-2025, which is above its 5-year median of 6.11% indicating increasing margins.

Q.8 Net Profit Margin of Sharat Industries Ltd?

Sharat Industries Ltd Net Profit Margin is 2.62% for FY-2025, is above with its 5-year median of 1.94%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.9	4
Operating Profit Margin	7.51	6.11
Net Profit Margin	2.62	1.94

Q.9 Debt to Equity ratio of Sharat Industries Ltd?

Sharat Industries Ltd Debt-to-Equity ratio is 0.83, which is above with the industry average of 0.28, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sharat Industries Ltd?

Sharat Industries Ltd Debt to cash flow from operations is -4.39, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sharat Industries Ltd?

Promoters hold 45.01% of the Sharat Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sharat Industries Ltd vs industry peers?

Sharat Industries Ltd revenue CAGR is 13.73%, compared to the industry median CAGR of 9.32%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	25.9	9.3
Gross Profit Growth	58.3	-25.1
Operating Profit Growth	38.1	NAN
Net Profit Growth	66.7	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.58	1.15
ROE	9.02	7.49
ROCE	11.88	10.75
Cash Conversion Cycle (days)	126.94	113

Valuation & price assessment

Q.1 Stock return of Sharat Industries Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 47.69% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	47.7%	49.3%	82%

Q.3 Valuation ratios of Sharat Industries 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	36.13	27.51	27.38
Price to Book	3.79	1.77	1.76
Price to Sales	1.18	0.47	1.12
EV to EBITDA	17.42	12.31	13.77

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