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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sarda Energy & Minerals Ltd

About the Company - Sarda Energy & Minerals Ltd

Sarda Energy & Minerals Ltd. is a Public Limited Listed company incorporated on 23/06/1973 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27100MH1973PLC016617 and registration number is 016617. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company’s Total Operating Revenue is Rs. 2641.95 Cr. and Equity Capital is Rs. 36.05 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Sponge Iron73-A, Central Avenue, Nagpur Maharashtra 440018cs@seml.co.in
http://www.seml.co.in
Management
NamePosition Held
Mr. K K SardaChairman & Managing Director
Mr. Pankaj SardaJoint Managing Director
Mr. P K JainWholeTime Director & CFO
Ms. Tripti SinhaIndependent Director
Mr. A K BasuIndependent Director
Mr. C K LakshminarayananIndependent Director
Mr. Rakesh MehraIndependent Director
Mr. Jitender BalakrishnanIndependent Director

Sarda Energy & Minerals Ltd. Share Price Update

Share PriceValue
Today₹223.00
Previous Day₹223.00

Basic Stock Data of Sarda Energy & Minerals Ltd

Market Cap 7,752 Cr.
Current Price 220
High / Low265/96.7
Stock P/E14.3
Book Value 104
Dividend Yield0.34 %
ROCE19.3 %
ROE18.7 %
Face Value 1.00

Data Source: screener.in

Competitors of Sarda Energy & Minerals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ankit Metal & Power Ltd 61.5 Cr. 4.366.11/2.30 73.20.00 %34.2 %% 10.0
Tata Steel Long Products Ltd 3,743 Cr. 830861/556 61.10.00 %%% 10.0
MSP Steel & Power Ltd 1,158 Cr. 30.033.4/7.4555.4 14.70.00 %1.40 %9.04 % 10.0
Jindal Steel & Power Ltd 77,058 Cr. 755805/50313.9 4070.26 %14.2 %10.6 % 1.00
Vaswani Industries Ltd 127 Cr. 42.244.9/18.017.9 38.80.00 %12.5 %5.49 % 10.0
Industry Average53.9 Cr332.3117.44118.960.05%12.46%5.03%8.2

Sarda Energy & Minerals Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales6046998321,0259991,0581,2619679081,0761,0521,001925
Expenses455515560614678707892685713862837759737
Operating Profit149184272411321352370281196214215242188
OPM %25%26%33%40%32%33%29%29%22%20%20%24%20%
Other Income3836-231-1630-39214429832435
Interest17221543454532323333353534
Depreciation19191939394644444545454646
Profit before tax151180235360222291255226161165218186143
Tax %23%23%28%27%24%30%32%18%19%30%20%19%25%
Net Profit116139168263169207173186130115172149114
EPS in Rs3.213.874.667.094.635.924.715.133.703.444.853.993.32

Sarda Energy & Minerals Ltd Quarterly Chart

Sarda Energy & Minerals Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,1081,4051,5911,7601,4801,4342,1742,3242,0002,1993,9144,2124,038
Expenses9401,1151,2631,3831,2951,2171,7721,8421,6441,6792,5593,1523,171
Operating Profit1682903293771852174024823565201,3551,060867
OPM %15%21%21%21%12%15%18%21%18%24%35%25%21%
Other Income474944-7741966317-171304349179
Interest72691231201129497998279147124135
Depreciation65699693756973767875143178181
Profit before tax7920115487391502943241794951,108807729
Tax %-12%19%40%35%68%15%30%36%24%23%27%25%
Net Profit88162925613127205207128376807604567
EPS in Rs2.434.512.541.530.353.665.625.643.5010.4022.3117.0915.98
Dividend Payout %-0%7%12%20%143%11%9%9%14%7%3%9%

Sarda Energy & Minerals Ltd Profit & Loss Yearly Chart

Sarda Energy & Minerals Ltd Growth

Compounded Sales Growth
10 Years:12%
5 Years:14%
3 Years:28%
TTM:-3%
Compounded Profit Growth
10 Years:15%
5 Years:24%
3 Years:67%
TTM:-22%
Stock Price CAGR
10 Years:37%
5 Years:56%
3 Years:84%
1 Year:106%
Return on Equity
10 Years:15%
5 Years:19%
3 Years:23%
Last Year:19%

Sarda Energy & Minerals Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital36363636363636363636363535
Reserves8641,0171,1121,1741,1871,3221,5401,7071,8342,1822,9683,3753,634
Borrowings1,1301,4271,7371,4821,2211,3631,3861,3951,6941,7141,5811,4071,220
Other Liabilities307306363352382395451543538587714664899
Total Liabilities2,3362,7863,2473,0442,8273,1153,4133,6824,1024,5185,2985,4815,788
Fixed Assets8001,4281,3831,3331,2261,1831,3581,3491,3231,2872,8532,9072,883
CWIP6132633754415947997831,0631,3741,616133131160
Investments133289572279205226241213191266500422703
Other Assets7918069179918039071,0301,0571,2141,3491,8122,0212,042
Total Assets2,3362,7863,2473,0442,8273,1153,4133,6824,1024,5185,2985,4815,788

Sarda Energy & Minerals Ltd Reserves and Borrowings Chart

Sarda Energy & Minerals Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 274247241-36469177300480336188917701
Cash from Investing Activity -444-474-385330-148-241-156-399-415-186-466-431
Cash from Financing Activity 233218176-385-38363-86-106199-70-331-479
Net Cash Flow64-932-91-61-158-24120-68120-208

Sarda Energy & Minerals Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days142015203127221523231616
Inventory Days12911312217784133102107141157107106
Days Payable485254294259394672674624
Cash Conversion Cycle968183168721018576921137799
Working Capital Days90536510510513186861081338997
ROCE %8%11%10%12%6%8%14%13%8%15%29%19%

Sarda Energy & Minerals Ltd Financial Efficiency Indicators Chart

Sarda Energy & Minerals Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters72.50%72.50%72.50%72.50%72.50%72.50%71.01%72.64%72.64%72.64%72.64%72.64%
FIIs0.05%0.11%0.76%1.33%1.56%1.72%1.83%1.97%1.91%2.44%2.55%2.69%
DIIs0.41%1.65%2.31%1.94%1.77%2.21%2.54%2.82%3.44%3.76%3.76%3.92%
Public27.04%25.74%24.43%24.23%24.17%23.58%24.62%22.55%21.99%21.16%21.04%20.74%
No. of Shareholders18,54018,97324,93925,95924,94125,40028,79627,89726,58126,24226,63338,807

Sarda Energy & Minerals Ltd Shareholding Pattern Chart

No. of Sarda Energy & Minerals Ltd Shareholders

Sarda Energy & Minerals Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Samco Active Momentum Fund2575061.36.52
Motilal Oswal Nifty Microcap 250 Index Fund1072050.442.72

Sarda Energy & Minerals Ltd ROCE Trend

Sarda Energy & Minerals Ltd EPS Trend

Sarda Energy & Minerals Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)169.94223.07104.0035.0556.36
Diluted EPS (Rs.)169.94223.07104.0035.0556.36
Cash EPS (Rs.)222.30263.91126.3359.2178.69
Book Value[Excl.RevalReserv]/Share (Rs.)996.12862.00644.13545.87515.84
Book Value[Incl.RevalReserv]/Share (Rs.)996.12862.00644.13545.87515.84
Revenue From Operations / Share (Rs.)1195.201085.72609.93554.83644.64
PBDIT / Share (Rs.)314.87389.92184.1994.12138.45
PBIT / Share (Rs.)264.26350.21163.3872.50117.24
PBT / Share (Rs.)228.96307.36137.4149.6289.79
Net Profit / Share (Rs.)171.69224.20105.5137.6057.47
NP After MI And SOA / Share (Rs.)170.86223.07103.9935.0556.36
PBDIT Margin (%)26.3435.9130.1916.9621.47
PBIT Margin (%)22.1032.2526.7813.0618.18
PBT Margin (%)19.1528.3022.528.9413.92
Net Profit Margin (%)14.3620.6417.296.778.91
NP After MI And SOA Margin (%)14.2920.5417.046.318.74
Return on Networth / Equity (%)17.6526.7716.876.7611.42
Return on Capital Employeed (%)19.6828.2315.037.5214.00
Return On Assets (%)10.9815.178.293.085.54
Long Term Debt / Equity (X)0.310.390.670.750.59
Total Debt / Equity (X)0.410.520.720.870.74
Asset Turnover Ratio (%)0.780.680.470.470.60
Current Ratio (X)2.992.612.482.081.76
Quick Ratio (X)2.021.871.521.281.08
Inventory Turnover Ratio (X)3.452.902.032.232.79
Dividend Payout Ratio (NP) (%)4.493.364.8014.268.87
Dividend Payout Ratio (CP) (%)3.462.854.008.826.44
Earning Retention Ratio (%)95.5196.6495.2085.7491.13
Cash Earning Retention Ratio (%)96.5497.1596.0091.1893.56
Interest Coverage Ratio (X)8.929.558.394.115.04
Interest Coverage Ratio (Post Tax) (X)5.866.545.992.643.09
Enterprise Value (Cr.)4928.745480.083113.761995.812494.94
EV / Net Operating Revenue (X)1.171.401.420.991.07
EV / EBITDA (X)4.443.904.695.885.00
MarketCap / Net Operating Revenue (X)0.901.040.680.210.48
Retention Ratios (%)95.5096.6395.1985.7391.12
Price / BV (X)1.111.360.670.220.63
Price / Net Operating Revenue (X)0.901.040.680.210.48
EarningsYield0.150.190.240.290.18

Sarda Energy & Minerals Ltd Profitability Ratios (%)

Sarda Energy & Minerals Ltd Liquidity Ratios

Sarda Energy & Minerals Ltd Liquidity Ratios (%)

Sarda Energy & Minerals Ltd Interest Coverage Ratios (X)

Sarda Energy & Minerals Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sarda Energy & Minerals Ltd

Fair Value: ₹279.05

The stock is undervalued by 26.84% compared to the current price ₹220

*Investments are subject to market risks

Strength and Weakness of Sarda Energy & Minerals Ltd

StrengthWeakness
  1. The company has higher reserves (1,839.69 cr) compared to borrowings (1,442.85 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.92 cr) and profit (272.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 193.52 and average Dividend Yield of 22.47%.
  2. The stock has a low average ROCE of 12.75%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 95.67, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 95.25, which may not be favorable.

Should I Buy Sarda Energy & Minerals Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Sarda Energy & Minerals Ltd:
    1. Net Profit Margin: 14.36% (Higher values are generally favorable)
      • 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: 19.68% (Industry Average ROCE: 12.46%)
      • 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): 5.86 (Higher values, preferably > 2, are recommended)
      • 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: 2.02 (Higher values, preferably > 1, are recommended)
      • 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: 14.9 (Industry average Stock P/E: 17.54)
      • 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: 0.41 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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 Sarda Energy & Minerals 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