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INVESTMENT INSIGHTS

Check Before You Invest : Sharda Motor Industries Ltd

BSE: 535602 NSE: SHARDAMOTR ISIN: INE597I01028
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Sharda Motor Industries Ltd belong to?
Sharda Motor Industries Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Sharda Motor Industries Ltd a good quality company?
Sharda Motor Industries Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Sharda Motor Industries Ltd undervalued or overvalued?
Sharda Motor Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Sharda Motor Industries Ltd a good buy now?
Sharda Motor Industries 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 Sharda Motor Industries Ltd?
Sharda Motor Industries Ltd revenue growth is 1% for FY-2025 , which is below its 5 year CAGR of 26.9% , indicating slower growth.
Q.2 Gross Profit margin of Sharda Motor Industries Ltd?
Sharda Motor Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.8% for FY-2025 , which is above its 5 year median of 11.9% , indicating increasing margins.
Q.3 Operating Profit Margin of Sharda Motor Industries Ltd?
Sharda Motor Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.81% for FY-2025 , which is above its 5 year median of 10.68% indicating increasing margins.
Q.4 Net Profit Margin of Sharda Motor Industries Ltd?
Sharda Motor Industries Ltd Net Profit Margin is 11.02% for FY-2025 , is above with its 5 year median of 7.61%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 16.8 11.9
Operating Profit Margin 13.81 10.68
Net Profit Margin 11.02 7.61
Q.5 Return on Asset of Sharda Motor Industries Ltd?
Sharda Motor Industries Ltd Return on Asset is 15.05%, which is above its 5 year historical median of 14.12%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Sharda Motor Industries Ltd?
Sharda Motor Industries Ltd Return on equity is 29.71% for FY-2025 , which is below its historical median of 29.74%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Sharda Motor Industries Ltd?
Sharda Motor Industries Ltd Return on capital employed is 40.07% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Sharda Motor Industries Ltd?
Sharda Motor Industries Ltd Cash conversion cycle is -18 days, below its historical median of -9 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.37 1.83
ROE 29.71 29.74
ROCE 40.07 40.13
Cash Conversion Cycle -18 days -9 days
Q.9 Debt to Equity ratio of Sharda Motor Industries Ltd?
Sharda Motor Industries Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.4 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Sharda Motor Industries Ltd?
Sharda Motor Industries Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sharda Motor Industries Ltd?
Promoters hold 64.31% of the Sharda Motor Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sharda Motor Industries Ltd vs industry peers?
Sharda Motor Industries Ltd revenue CAGR is 26.87% , compared to the industry median CAGR of 11.82% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,836.6 492.3
Gross Profit 476.6 44.4
Operating Profit 389 47
Net Profit 312 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.37 1.23
ROE 29.71 11.57
ROCE 40.07 13.36
Cash Conversion Cycle (days) -18.24 47

Valuation & price assessment

Q.1 Stock return of Sharda Motor Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 26% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 26% 34.1% 40% 13.3%
Q.3 Valuation ratios of Sharda Motor 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 14.66 16.36 39.31
Price to Book 3.99 1.52 2.88
Price to Sales 1.56 0.71 1.29
EV to EBITDA 9.78 4.52 11.85

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