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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sandhar Technologies Ltd

About the Company - Sandhar Technologies Ltd

Sandhar Technologies Ltd. is a Public Limited Listed company incorporated on 19/10/1987 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74999DL1987PLC029553 and registration number is 029553. Currently Company is involved in the business activities of Manufacture of parts and accessories of three wheelers and motorcycles including side cars. Company’s Total Operating Revenue is Rs. 1941.02 Cr. and Equity Capital is Rs. 60.19 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - OthersB-6/20 L.S.C. Safdarjung Enclave, New Delhi Delhi 110029investors@sandhar.in
http://www.sandhar.co.in
Management
NamePosition Held
Mr. Dharmendar Nath DavarChairman, Non Ind & Non Exe Director
Mr. Jayant DavarCo-Chairman & Manag. Director
Mrs. Monica DavarNon Exe.Non Ind.Director
Mr. Sandeep DinodiaNon Exe.Non Ind.Director
Mr. Neel Jay DavarNon Exe.Non Ind.Director
Mr. Arvind KapurInd. Non-Executive Director
Mr. Vimal MahendruInd. Non-Executive Director
Mr. Bharat AnandInd. Non-Executive Director
Mrs. Archana CapoorInd. Non-Executive Director
Mr. Arjun SharmaInd. Non-Executive Director

Sandhar Technologies Ltd. Share Price Update

Share PriceValue
Today₹465.15
Previous Day₹468.55

Basic Stock Data of Sandhar Technologies Ltd

Market Cap 3,163 Cr.
Current Price 525
High / Low599/186
Stock P/E32.2
Book Value 159
Dividend Yield0.47 %
ROCE8.70 %
ROE8.01 %
Face Value 10.0

Data Source: screener.in

Competitors of Sandhar Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Omax Autos Ltd 242 Cr. 113137/37.6120 1310.00 %1.67 %7.76 % 10.0
Munjal Auto Industries Ltd 892 Cr. 89.2115/35.626.2 38.82.20 %8.71 %5.96 % 2.00
Lumax Auto Technologies Ltd 3,218 Cr. 472499/24529.2 1030.95 %14.8 %15.9 % 2.00
JBM Auto Ltd 25,621 Cr. 2,1672,428/568170 90.10.06 %11.8 %12.9 % 2.00
Minda Corporation Ltd 10,361 Cr. 433450/18537.2 78.50.28 %16.5 %19.6 % 2.00
Industry Average8,066.80 Cr654.8476.5288.280.70%10.70%12.42%3.60

Sandhar Technologies Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales593642410618612684675746723765829885890
Expenses528566382562563623623690657697756804801
Operating Profit65762856496052576568738189
OPM %11%12%7%9%8%9%8%8%9%9%9%9%10%
Other Income4322113328343
Interest54444678911111313
Depreciation24242425252729293133353740
Profit before tax4051230222819232732303539
Tax %28%20%-20%28%39%38%32%28%27%22%27%22%34%
Net Profit2940221131813162025222825
EPS in Rs4.866.670.373.522.162.912.112.703.274.043.554.544.19

Sandhar Technologies Ltd Quarterly Chart

Sandhar Technologies Ltd Profit & Loss

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,4821,5131,6111,9462,3361,9431,8642,3242,9093,201
Expenses1,3431,3721,4661,7432,0911,7571,6862,1302,6632,914
Operating Profit139141146203245187177193246287
OPM %9%9%9%10%10%10%10%8%8%9%
Other Income61746101161117
Interest41424343242016183644
Depreciation52555868819894100122135
Profit before tax51455297145787881100124
Tax %25%25%20%32%34%27%26%31%27%
Net Profit38344266965758567494
EPS in Rs7.486.548.0710.8015.819.459.599.2612.1215.40
Dividend Payout %25%54%25%19%16%21%23%24%21%

Sandhar Technologies Ltd Profit & Loss Yearly Chart

Sandhar Technologies Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:8%
3 Years:14%
TTM:19%
Compounded Profit Growth
10 Years:%
5 Years:2%
3 Years:8%
TTM:46%
Stock Price CAGR
10 Years:%
5 Years:14%
3 Years:29%
1 Year:134%
Return on Equity
10 Years:%
5 Years:9%
3 Years:7%
Last Year:8%

Sandhar Technologies Ltd Balance Sheet

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital10515160606060606060
Reserves249222251574659702744799860895
Borrowings370395460484268283310614666668
Other Liabilities286296305467475321482503563645
Total Liabilities9169651,0671,5851,4621,3671,5971,9762,1502,268
Fixed Assets4765285956787438318429421,1721,220
CWIP40552972373315128115117
Investments341124394858534951
Other Assets396377433811642454682853814880
Total Assets9169651,0671,5851,4621,3671,5971,9762,1502,268

Sandhar Technologies Ltd Reserves and Borrowings Chart

Sandhar Technologies Ltd Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1001449618813323912449308
Cash from Investing Activity -118-103-107-186-141-112-98-310-269
Cash from Financing Activity 20-4114247-243-124-26260-37
Net Cash Flow2-02249-2513-1-22

Sandhar Technologies Ltd Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days464047505336777045
Inventory Days636563665864716760
Days Payable909190112947913110382
Cash Conversion Cycle19141951722173523
Working Capital Days241812-332725384731
ROCE %14%13%15%16%10%9%8%9%

Sandhar Technologies Ltd Financial Efficiency Indicators Chart

Sandhar Technologies Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters70.35%70.37%70.37%70.38%70.38%70.38%70.38%70.38%70.38%70.38%70.38%70.38%
FIIs1.55%1.70%1.47%1.25%0.98%1.05%1.09%0.90%0.91%1.65%1.35%1.52%
DIIs16.29%16.24%15.88%15.68%15.46%16.11%15.58%16.81%16.52%16.96%16.96%16.41%
Public11.81%11.69%12.27%12.69%13.18%12.46%12.95%11.92%12.19%11.01%11.30%11.69%
No. of Shareholders23,86425,04032,12333,24633,66432,64734,12532,18130,73128,41229,34631,286

Sandhar Technologies Ltd Shareholding Pattern Chart

No. of Sandhar Technologies Ltd Shareholders

Sandhar Technologies Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Small Cap Fund24258520.27119.64
DSP Small Cap Fund23538940.91118.84
Kotak Small Cap Fund - Regular Plan19338580.6895.38
Bandhan ELSS Tax Saver Fund13500001.1666.58
ICICI Prudential Equity & Debt Fund3417370.0617.25
ICICI Prudential Dividend Yield Equity Fund3136890.5515.84
Bandhan Transportation and Logistics Fund2000002.559.86

Sandhar Technologies Ltd ROCE Trend

Sandhar Technologies Ltd EPS Trend

Sandhar Technologies Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)12.229.299.619.4715.92
Diluted EPS (Rs.)12.229.299.619.4715.92
Cash EPS (Rs.)32.8828.0227.0827.3930.50
Book Value[Excl.RevalReserv]/Share (Rs.)153.66143.35134.25127.27120.13
Book Value[Incl.RevalReserv]/Share (Rs.)153.66143.35134.25127.27120.13
Revenue From Operations / Share (Rs.)483.28386.06309.61322.87388.07
PBDIT / Share (Rs.)43.4635.3933.0934.2942.84
PBIT / Share (Rs.)23.2718.7717.4817.9429.40
PBT / Share (Rs.)17.1415.6414.8214.5425.30
Net Profit / Share (Rs.)12.6911.4011.4711.0417.06
NP After MI And SOA / Share (Rs.)12.129.269.609.4515.81
PBDIT Margin (%)8.999.1610.6810.6211.03
PBIT Margin (%)4.814.865.645.557.57
PBT Margin (%)3.544.054.784.506.51
Net Profit Margin (%)2.622.953.703.424.39
NP After MI And SOA Margin (%)2.502.393.092.924.07
Return on Networth / Equity (%)7.926.487.177.4613.22
Return on Capital Employeed (%)10.209.3610.4712.4523.42
Return On Assets (%)3.382.823.614.166.51
Long Term Debt / Equity (X)0.330.280.120.010.01
Total Debt / Equity (X)0.590.600.260.250.37
Asset Turnover Ratio (%)1.431.271.211.311.47
Current Ratio (X)0.991.041.120.880.89
Quick Ratio (X)0.610.700.760.490.58
Inventory Turnover Ratio (X)7.737.156.186.067.67
Dividend Payout Ratio (NP) (%)18.6010.9020.9426.878.18
Dividend Payout Ratio (CP) (%)6.973.907.979.844.42
Earning Retention Ratio (%)81.4089.1079.0673.1391.82
Cash Earning Retention Ratio (%)93.0396.1092.0390.1695.58
Interest Coverage Ratio (X)7.3112.0312.4310.0910.77
Interest Coverage Ratio (Post Tax) (X)3.174.945.314.255.32
Enterprise Value (Cr.)1760.671827.161443.78965.801838.81
EV / Net Operating Revenue (X)0.600.780.770.490.78
EV / EBITDA (X)6.738.587.254.687.13
MarketCap / Net Operating Revenue (X)0.410.560.660.390.67
Retention Ratios (%)81.3989.0979.0573.1291.81
Price / BV (X)1.321.531.541.022.18
Price / Net Operating Revenue (X)0.410.560.660.390.67
EarningsYield0.060.040.040.070.06

Sandhar Technologies Ltd Profitability Ratios (%)

Sandhar Technologies Ltd Liquidity Ratios

Sandhar Technologies Ltd Liquidity Ratios (%)

Sandhar Technologies Ltd Interest Coverage Ratios (X)

Sandhar Technologies Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sandhar Technologies Ltd

Fair Value: ₹412.02

The stock is overvalued by 21.52% compared to the current price ₹525

*Investments are subject to market risks

Strength and Weakness of Sandhar Technologies Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 21.00, which is a positive sign.
  2. The company has higher reserves (595.50 cr) compared to borrowings (451.80 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.50 cr) and profit (85.10 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 21.37 and average Dividend Yield of 5.69%.
  2. The stock has a low average ROCE of 10.44%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 19.00, which may not be favorable.

Should I Buy Sandhar Technologies Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sandhar Technologies Ltd:
    1. Net Profit Margin: 2.62%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 10.20% (Industry Average ROCE: 14.82%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 3.17
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.61
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 32.2 (Industry average Stock P/E: 40.52)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.59
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sandhar Technologies Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE