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

Fundamental Analysis of Sharda Motor Industries Ltd

About the Company - Sharda Motor Industries Ltd

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, Phase-1, New Delhi Delhi 110020investorrelations@shardamotor.com
http://www.shardamotor.com
Management
NamePosition Held
Mr. Kishan N ParikhChairperson
Mrs. Sharda RelanCo-Chairperson
Mr. Ajay RelanManaging Director
Mr. Nitin VishnoiExecutive Director
Prof. Ashok Kumar BhattacharyaDirector
Mr. Udayan BanerjeeDirector
Mrs. Sarita DhuperDirector

Sharda Motor Industries Ltd. Share Price Update

Share PriceValue
Today₹1,378.70
Previous Day₹1,384.65

Basic Stock Data of Sharda Motor Industries Ltd

Market Cap 4,075 Cr.
Current Price 1,370
High / Low1,572/550
Stock P/E15.2
Book Value 291
Dividend Yield1.26 %
ROCE37.9 %
ROE28.8 %
Face Value 2.00

Data Source: screener.in

Competitors of Sharda Motor Industries 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
Akar Auto Industries Ltd 137 Cr. 127170/61.818.7 39.10.40 %17.6 %19.1 % 5.00
Lumax Auto Technologies Ltd 3,218 Cr. 472499/24529.2 1030.95 %14.8 %15.9 % 2.00
Pricol Ltd 4,943 Cr. 406444/17438.3 63.00.00 %20.1 %18.3 % 1.00
Minda Corporation Ltd 10,361 Cr. 433450/18537.2 78.50.28 %16.5 %19.6 % 2.00
Industry Average3,780.20 Cr310.2048.6882.920.33%14.13%16.13%4.00

Sharda Motor Industries Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales584604472587579618628698686688654763689
Expenses533552432526517554567622622607586663595
Operating Profit51524061626461766481689994
OPM %9%9%9%10%11%10%10%11%9%12%10%13%14%
Other Income6661068891114181922
Interest0000000110111
Depreciation1213101010119111314121314
Profit before tax4545366157606073628174105102
Tax %25%26%26%25%25%24%25%26%26%25%26%25%26%
Net Profit34332746434645544661557975
EPS in Rs11.2911.079.0415.3714.3815.5215.0418.1915.5020.3718.5326.5725.25

Sharda Motor Industries Ltd Quarterly Chart

Sharda Motor Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7518988218759271,0421,1551,1408631,7372,2552,7002,791
Expenses6878127477838279121,0109957671,6072,0272,4182,478
Operating Profit6587759210013014514596129228282313
OPM %9%10%9%10%11%12%13%13%11%7%10%10%11%
Other Income6391010517222421294262
Interest91116151282011122
Depreciation31364652485044414044414652
Profit before tax30442234507711712678105215275321
Tax %8%40%32%-5%32%26%33%30%26%25%25%25%
Net Profit28261536345779885879161205241
EPS in Rs9.308.745.0512.1611.5219.1126.4729.5819.4426.4654.3269.0980.97
Dividend Payout %22%23%40%16%22%13%9%0%0%2%15%25%

Sharda Motor Industries Ltd Profit & Loss Yearly Chart

Akar Auto Industries Ltd Growth

Compounded Sales Growth
10 Years:12%
5 Years:19%
3 Years:46%
TTM:6%
Compounded Profit Growth
10 Years:23%
5 Years:21%
3 Years:57%
TTM:41%
Stock Price CAGR
10 Years:39%
5 Years:37%
3 Years:46%
1 Year:132%
Return on Equity
10 Years:22%
5 Years:23%
3 Years:27%
Last Year:29%

Sharda Motor Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital6666666666666
Reserves140164172199225279349432361440594776859
Borrowings12616022514412159001112122524
Other Liabilities171180164168178207232246247530480606643
Total Liabilities4435095675185305525876856259871,0931,4131,532
Fixed Assets229260299272243204179194186179156221216
CWIP111178410010000
Investments21112318010685425510454103
Other Assets1812372602372522673014063957538321,1381,212
Total Assets4435095675185305525876856259871,0931,4131,532

Sharda Motor Industries Ltd Reserves and Borrowings Chart

Sharda Motor Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 5543491009316411695-30148192-200
Cash from Investing Activity -59-59-64-18-62-84-30-4239-152-62191
Cash from Financing Activity 51945-103-43-77-70-5-1-1-9-27
Net Cash Flow1330-21-12316488-6120-36

Sharda Motor Industries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days464147414038394250684545
Inventory Days414844514737404867362734
Days Payable68756671718485901291218487
Cash Conversion Cycle1913252216-9-61-13-17-13-8
Working Capital Days212231510-5-12-3-11-948
ROCE %14%18%10%13%19%26%33%30%17%24%39%38%

Sharda Motor Industries Ltd Financial Efficiency Indicators Chart

Sharda Motor Industries Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters73.20%73.20%73.20%73.20%73.20%73.20%73.20%73.20%73.20%73.20%73.20%73.20%
FIIs0.20%0.17%0.27%0.38%0.53%0.61%0.58%0.77%1.11%1.22%1.64%1.79%
DIIs0.84%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.24%0.29%0.30%
Government0.00%0.12%0.12%0.12%0.12%0.12%0.00%0.00%0.12%0.00%0.00%0.00%
Public25.76%26.51%26.41%26.30%26.15%26.08%26.24%26.03%25.57%25.34%24.88%24.72%
No. of Shareholders7,20211,53511,60812,00312,23411,91814,30814,75015,04615,20317,95419,174

Sharda Motor Industries Ltd Shareholding Pattern Chart

No. of Sharda Motor Industries Ltd Shareholders

This stock is not held by any mutual fund

Sharda Motor Industries Ltd ROCE Trend

Sharda Motor Industries Ltd EPS Trend

Sharda Motor Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.0010.0010.0010.00
Basic EPS (Rs.)70.0750.19112.0888.10159.18
Diluted EPS (Rs.)70.0750.19112.0888.10159.18
Cash EPS (Rs.)84.6667.99206.14164.75215.06
Book Value[Excl.RevalReserv]/Share (Rs.)254.90192.69724.57613.10798.19
Book Value[Incl.RevalReserv]/Share (Rs.)254.90192.69724.57613.10798.19
Revenue From Operations / Share (Rs.)908.11758.562920.361451.301916.94
PBDIT / Share (Rs.)108.8186.55253.42201.16279.77
PBIT / Share (Rs.)93.2472.88179.45133.53210.88
PBT / Share (Rs.)92.6072.38177.05131.97210.80
Net Profit / Share (Rs.)69.0954.32132.1797.13146.17
NP After MI And SOA / Share (Rs.)70.0750.19112.0888.10159.18
PBDIT Margin (%)11.9811.408.6713.8614.59
PBIT Margin (%)10.269.606.149.2011.00
PBT Margin (%)10.199.546.069.0910.99
Net Profit Margin (%)7.607.164.526.697.62
NP After MI And SOA Margin (%)7.716.613.836.078.30
Return on Networth / Equity (%)27.4826.0415.4614.3619.94
Return on Capital Employeed (%)35.0836.5523.8320.9125.81
Return On Assets (%)14.9914.006.858.4113.12
Asset Turnover Ratio (%)2.202.182.161.281.75
Current Ratio (X)1.871.841.441.641.98
Quick Ratio (X)1.531.571.171.201.54
Inventory Turnover Ratio (X)12.5213.1211.355.117.52
Dividend Payout Ratio (NP) (%)11.635.240.000.003.92
Dividend Payout Ratio (CP) (%)9.514.110.000.002.74
Earning Retention Ratio (%)88.3794.760.000.0096.08
Cash Earning Retention Ratio (%)90.4995.890.000.0097.26
Interest Coverage Ratio (X)169.18174.46105.60128.873624.44
Interest Coverage Ratio (Post Tax) (X)108.43110.4956.0763.221894.58
Enterprise Value (Cr.)1500.131821.00905.42183.36746.64
EV / Net Operating Revenue (X)0.550.800.520.210.65
EV / EBITDA (X)4.647.086.011.534.49
MarketCap / Net Operating Revenue (X)0.610.980.670.380.77
Retention Ratios (%)88.3694.750.000.0096.07
Price / BV (X)2.193.872.710.901.87
Price / Net Operating Revenue (X)0.610.980.670.380.77
EarningsYield0.120.060.050.150.10

Sharda Motor Industries Ltd Profitability Ratios (%)

Sharda Motor Industries Ltd Liquidity Ratios

Sharda Motor Industries Ltd Liquidity Ratios (%)

Sharda Motor Industries Ltd Interest Coverage Ratios (X)

Sharda Motor Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sharda Motor Industries Ltd

Fair Value: ₹1289.93

The stock is overvalued by 5.84% compared to the current price ₹1370

*Investments are subject to market risks

Strength and Weakness of Sharda Motor Industries Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 23.42%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 6.92, which is a positive sign.
  3. The company has higher reserves (383.85 cr) compared to borrowings (70.69 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (395.77 cr) and profit (114.92 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 138.00 and average Dividend Yield of 9.24%.
  2. The stock has a high average Cash Conversion Cycle of 2.50, which may not be favorable.

Should I Buy Sharda Motor Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sharda Motor Industries Ltd:
    1. Net Profit Margin: 7.60%
      • 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: 35.08% (Industry Average ROCE: 11.66%)
      • 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): 108.43
      • 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: 1.53
      • 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: 15.2 (Industry average Stock P/E: 62.98)
      • 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: N/A
      • 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 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