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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 535602 | NSE: SHARDAMOTR

Sharda Motor Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 1:54 am

Market Cap 6,002 Cr.
Current Price 2,019
High / Low2,956/1,120
Stock P/E19.0
Book Value 310
Dividend Yield0.49 %
ROCE39.3 %
ROE30.0 %
Face Value 2.00
PEG Ratio0.59

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Sharda Motor Industries Ltd

Competitors of Sharda Motor Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
G S Auto International Ltd 54.7 Cr. 37.754.8/21.644.5 15.60.00 %10.1 %3.21 % 5.00
Duncan Engineering Ltd 240 Cr. 649902/37836.9 1490.54 %18.4 %13.9 % 10.0
Bharat Seats Ltd 615 Cr. 196240/12622.5 55.90.82 %15.3 %15.9 % 2.00
Automobile Corporation of Goa Ltd 1,310 Cr. 2,1513,449/1,38528.5 3870.93 %18.7 %18.6 % 10.0
Akar Auto Industries Ltd 113 Cr. 105170/87.818.1 44.40.57 %17.3 %13.1 % 5.00
Industry Average3,182.41N/A32.79N/AN/A16.3614.65N/A

All Competitor Stocks of Sharda Motor Industries Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales472587579618628698686688654763689703685
Expenses432526517554567622622607586663595604590
Operating Profit40616264617664816899949996
OPM %9%10%11%10%10%11%9%12%10%13%14%14%14%
Other Income610688911141819222920
Interest0000011011100
Depreciation1010101191113141213141413
Profit before tax366157606073628174105102114102
Tax %26%25%25%24%25%26%26%25%26%25%26%25%25%
Net Profit27464346455446615579758676
EPS in Rs9.0415.3714.3815.5215.0418.1915.5020.3718.5326.5725.2528.8325.67

Last Updated: October 19, 2024, 12:36 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 25, 2024, 12:35 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales8988218759271,0421,1551,1408631,7372,2552,7002,8092,841
Expenses8127477838279121,0109957671,6072,0272,4182,4482,452
Operating Profit87759210013014514596129228282361389
OPM %10%9%10%11%12%13%13%11%7%10%10%13%14%
Other Income39101051722242129428889
Interest11161512820111222
Depreciation36465248504441404441465353
Profit before tax442234507711712678105215275395423
Tax %40%32%-5%32%26%33%30%26%25%25%25%25%
Net Profit261536345779885879161205295316
EPS in Rs8.745.0512.1611.5219.1126.4729.5819.4426.4654.3269.0999.19106.32
Dividend Payout %23%40%16%22%13%9%0%0%2%15%25%1%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-42.31%140.00%-5.56%67.65%38.60%11.39%-34.09%36.21%103.80%27.33%43.90%
Change in YoY Net Profit Growth (%)0.00%182.31%-145.56%73.20%-29.05%-27.20%-45.48%70.30%67.59%-76.47%16.57%

Sharda Motor Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:20%
3 Years:17%
TTM:0%
Compounded Profit Growth
10 Years:34%
5 Years:27%
3 Years:53%
TTM:31%
Stock Price CAGR
10 Years:28%
5 Years:58%
3 Years:41%
1 Year:56%
Return on Equity
10 Years:24%
5 Years:26%
3 Years:30%
Last Year:30%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:41 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital6666666666666
Reserves1641721992252793494323614405947761,019916
Borrowings1602251441215900111212252423
Other Liabilities180164168178207232246247530480606598650
Total Liabilities5095675185305525876856259871,0931,4131,6471,595
Fixed Assets260299272243204179194186179156221219214
CWIP11784100100000
Investments112318010685425510454687693
Other Assets2372602372522673014063957538321,138741687
Total Assets5095675185305525876856259871,0931,4131,6471,595

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +43491009316411695-30148192-200370
Cash from Investing Activity +-59-64-18-62-84-30-4239-152-62191-215
Cash from Financing Activity +1945-103-43-77-70-5-1-1-9-27-54
Net Cash Flow330-21-12316488-6120-36100

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-73.00-150.00-52.00-21.0071.00145.00145.0085.00117.00216.00257.00337.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days414741403839425068454530
Inventory Days484451473740486736273434
Days Payable75667171848590129121848784
Cash Conversion Cycle13252216-9-61-13-17-13-8-21
Working Capital Days12231510-5-12-3-11-948-19
ROCE %18%10%13%19%26%33%30%17%24%39%38%39%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters73.20%73.20%73.20%73.20%73.20%73.20%73.20%73.20%73.20%73.20%64.31%64.31%
FIIs0.38%0.53%0.61%0.58%0.77%1.11%1.22%1.64%1.79%1.55%2.42%2.38%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.24%0.29%0.30%0.42%9.32%11.41%
Government0.12%0.12%0.12%0.00%0.00%0.12%0.00%0.00%0.00%0.00%0.00%0.00%
Public26.30%26.15%26.08%26.24%26.03%25.57%25.34%24.88%24.72%24.83%23.94%21.89%
No. of Shareholders12,00312,23411,91814,30814,75015,04615,20317,95419,17420,81627,37533,960

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Flexicap Fund715,8050.98173.72258,3102024-11-15177.11%
HSBC Small Cap Fund - Regular Plan531,9820.75129.11258,3102024-11-15105.95%
Nippon India Small Cap Fund413,2950.16100.3258,3102024-11-1560%
HDFC Manufacturing Fund312,0000.5675.72258,3102024-11-1520.79%
Axis Small Cap Fund258,3100.2562.69258,3102024-11-150%
ICICI Prudential Transportation and Logistics Fund194,2301.4147.14258,3102024-11-15-24.81%
Axis India Manufacturing Fund173,0660.6442258,3102024-11-15-33%
HDFC Multi Cap Fund116,7020.1628.32258,3102024-11-15-54.82%
PGIM India Small Cap Fund100,1921.5124.32258,3102024-11-15-61.21%
Edelweiss Balanced Advantage Fund60,8760.1214.77258,3102024-11-15-76.43%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.0010.0010.00
Basic EPS (Rs.)100.7770.0750.19112.0888.10
Diluted EPS (Rs.)100.7770.0750.19112.0888.10
Cash EPS (Rs.)116.8684.6667.99206.14164.75
Book Value[Excl.RevalReserv]/Share (Rs.)338.32254.90192.69724.57613.10
Book Value[Incl.RevalReserv]/Share (Rs.)338.32254.90192.69724.57613.10
Revenue From Operations / Share (Rs.)944.88908.11758.562920.361451.30
PBDIT / Share (Rs.)151.12108.8186.55253.42201.16
PBIT / Share (Rs.)133.4493.2472.88179.45133.53
PBT / Share (Rs.)132.7092.6072.38177.05131.97
Net Profit / Share (Rs.)99.1969.0954.32132.1797.13
NP After MI And SOA / Share (Rs.)100.7770.0750.19112.0888.10
PBDIT Margin (%)15.9911.9811.408.6713.86
PBIT Margin (%)14.1210.269.606.149.20
PBT Margin (%)14.0410.199.546.069.09
Net Profit Margin (%)10.497.607.164.526.69
NP After MI And SOA Margin (%)10.667.716.613.836.07
Return on Networth / Equity (%)29.7827.4826.0415.4614.36
Return on Capital Employeed (%)38.1535.0836.5523.8320.91
Return On Assets (%)18.4014.9914.006.858.41
Asset Turnover Ratio (%)1.862.202.182.161.28
Current Ratio (X)1.771.871.841.441.64
Quick Ratio (X)1.441.531.571.171.20
Inventory Turnover Ratio (X)10.4612.5213.1211.355.11
Dividend Payout Ratio (NP) (%)17.1311.635.240.000.00
Dividend Payout Ratio (CP) (%)14.589.514.110.000.00
Earning Retention Ratio (%)82.8788.3794.760.000.00
Cash Earning Retention Ratio (%)85.4290.4995.890.000.00
Interest Coverage Ratio (X)203.52169.18174.46105.60128.87
Interest Coverage Ratio (Post Tax) (X)134.58108.43110.4956.0763.22
Enterprise Value (Cr.)3793.121500.131821.00905.42183.36
EV / Net Operating Revenue (X)1.350.550.800.520.21
EV / EBITDA (X)8.444.647.086.011.53
MarketCap / Net Operating Revenue (X)1.440.610.980.670.38
Retention Ratios (%)82.8688.3694.750.000.00
Price / BV (X)4.032.193.872.710.90
Price / Net Operating Revenue (X)1.440.610.980.670.38
EarningsYield0.070.120.060.050.15

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sharda Motor Industries Ltd as of November 17, 2024 is: 1,775.66

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 17, 2024, Sharda Motor Industries Ltd is Overvalued by 12.05% compared to the current share price 2,019.00

Intrinsic Value of Sharda Motor Industries Ltd as of November 17, 2024 is: 2,345.12

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 17, 2024, Sharda Motor Industries Ltd is Undervalued by 16.15% compared to the current share price 2,019.00

Last 5 Year EPS CAGR: 32.07%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 25.50%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 5.17, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -0.83, which is a positive sign.
  4. The company has higher reserves (455.85 cr) compared to borrowings (62.77 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (338.15 cr) and profit (150.85 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Sharda Motor Industries Ltd:
      1. Net Profit Margin: 10.49%
        • 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: 38.15% (Industry Average ROCE: 16.36%)
        • 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. ROE%: 29.78% (Industry Average ROE: 14.65%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 134.58
        • 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.
      5. Quick Ratio: 1.44
        • 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.
      6. Stock P/E: 19 (Industry average Stock P/E: 32.79)
        • 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.
      7. Total Debt / Equity: 0
        • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    Sharda Motor Industries Ltd. is a Public Limited Listed company incorporated on 29/01/1986 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1986PLC023202 and registration number is 023202. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 2255.31 Cr. and Equity Capital is Rs. 5.95 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Auto Ancl - OthersD-188, Okhla Industrial Area, New Delhi Delhi 110020investorrelations@shardamotor.com
    http://www.shardamotor.com
    Management
    NamePosition Held
    Mr. Kishan N ParikhChairman(NonExe.&Ind.Director)
    Mrs. Sharda RelanCo-Chairperson
    Mr. Ajay RelanManaging Director
    Mr. Nitin VishnoiExecutive Director & Company Secretary
    Prof. Ashok Kumar BhattacharyaInd. Non-Executive Director
    Mr. Udayan BanerjeeInd. Non-Executive Director
    Mrs. Sarita DhuperInd. Non-Executive Director
    Mr. Navin PaulInd. Non-Executive Director

    FAQ

    What is the latest intrinsic value of Sharda Motor Industries Ltd?

    The latest intrinsic value of Sharda Motor Industries Ltd as on 17 November 2024 is ₹1775.66, which is 12.05% lower than the current market price of ₹2,019.00.

    What is the Market Cap of Sharda Motor Industries Ltd?

    The Market Cap of Sharda Motor Industries Ltd is 6,002 Cr..

    What is the current Stock Price of Sharda Motor Industries Ltd as on 17 November 2024?

    The current stock price of Sharda Motor Industries Ltd as on 17 November 2024 is ₹2,019.

    What is the High / Low of Sharda Motor Industries Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Sharda Motor Industries Ltd stocks is 2,956/1,120.

    What is the Stock P/E of Sharda Motor Industries Ltd?

    The Stock P/E of Sharda Motor Industries Ltd is 19.0.

    What is the Book Value of Sharda Motor Industries Ltd?

    The Book Value of Sharda Motor Industries Ltd is 310.

    What is the Dividend Yield of Sharda Motor Industries Ltd?

    The Dividend Yield of Sharda Motor Industries Ltd is 0.49 %.

    What is the ROCE of Sharda Motor Industries Ltd?

    The ROCE of Sharda Motor Industries Ltd is 39.3 %.

    What is the ROE of Sharda Motor Industries Ltd?

    The ROE of Sharda Motor Industries Ltd is 30.0 %.

    What is the Face Value of Sharda Motor Industries Ltd?

    The Face Value of Sharda Motor Industries Ltd is 2.00.

    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 Sharda Motor Industries 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