Dashboard/SARDAEN

SARDAEN

OVERVALUED

Sarda Energy & Minerals Limited

Metals · NSE

↓ 70.2% vs fair value

52W Low

₹397

+31.7% from low

52W High

₹640

-18.4% from high

News sentiment (3 articles)

3 bull0 neutral0 bear

✦

Analyst Note

2d ago

Sarda Energy & Minerals trades at ₹522.2, a 67.8% premium to its fair value of ₹306.91, signaling overvaluation with medium confidence. The metals company faces headwinds including negative revenue growth of -3.3% and five-year earnings decline of -4.5%, while ROCE has deteriorated to 12.3%. However, sentiment remains consistently bullish over both seven and thirty-day periods, and the company maintains manageable leverage at 0.38 debt-to-equity. This stock suits contrarian investors willing to bet against near-term sentiment, though fundamentals suggest caution.

Valuation Gauge

OVERVALUED-70.2% Margin of Safety

OVERVALUEDFAIRLY VALUEDUNDERVALUED

Current Price

₹522

Fair Value

₹307

Fair Value Analysis

₹307

Based on balance sheet strength analysis and earnings multiple (EV/EBITDA) for Metals sector companies | CAUTION: ROCE declining (latest 13.5%) — returns on capital are falling; verify this isn't a value trap. | Growth capped at 17.4% (ROE 15.1%×1.15) — historical CAGR exceeds sustainable rate or COVID period unverifiable.

Medium confidence

Balance Sheet Value

40% weight

₹366

EV/EBITDA Multiple

60% weight

₹267

Price vs Market

SARDAEN

Nifty 50

Technical Pulse

Plain English — no jargon

RSI 51.5Neutral

52-week range-7.6% from high

L 477.8H 562.05

20-day avg₹524▼ 0.9%

📍

Price PositionNeutral

Not enough price history to assess trend.

💪

Momentum (RSI)Neutral

RSI is 52 — neutral momentum, neither overbought nor oversold.

📈

Short-term TrendNeutral

Insufficient data for short-term trend.

→Combined Verdict

Trading significantly above fair value. Unless you believe the business has permanently re-rated, the risk-reward is unfavorable here.

Shareholding Pattern

Stock Health Score

B+

Financially Healthy

7.2 / 10

Profitability

10/10

ROE of 15.1% is above the Metals sector benchmark of 12% — strong returns

Debt & Leverage

10/10

D/E ratio of 0.4x is well within the Metals sector norm of 0.8x — strong balance sheet

Valuation vs Peers

10/10

P/E of 17.2x trades at a 72% discount to Metals sector median (61x) — attractively valued

Cash Flow

6/10

FCF margin of 8.6% — healthy cash generation (₹395 Cr)

Earnings Growth

3/10

5yr EPS CAGR of -4.5% — earnings are declining (sector avg growth: 13.8%)

Dividend

4/10

Dividend yield of 0.3% is symbolic — low but positive

Sentiment Trend — Last 30 Days

Historical Returns

Key Ratios & Growth

FCF Yield

-6.9%

Free cash flow / market cap

Revenue Growth (YoY)

-3.3%

Year-on-year revenue change

Profit Growth (YoY)

-5.0%

Year-on-year PAT change

Operating Cash Flow

₹886 Cr

TTM cash from operations

Key Financials

EPS (TTM)

₹30

P/E Ratio

17.2x

P/B Ratio

2.6x

ROE

15.1%

ROCE

12.3%

Debt / Equity

0.38x

Beta

0.5

Div Yield

0.3%

FCF (Cr)

₹395 Cr

Revenue (Cr)

₹4,605 Cr

EPS Growth 5Y

-4.5%

Mkt Cap (Cr)

₹18,296 Cr

52W High

₹639.8

52W Low

₹396.6

Book Value/Share

₹198.9

Financial History

Period	Revenue	Op Profit	OPM%	PAT	EPS
TTM	₹5.7K Cr	₹1.7K Cr	30.0%	₹1.1K Cr	₹29.97
2025-03-31	₹4.6K Cr	₹1.2K Cr	27.0%	₹702 Cr	₹19.86
2024-03-31	₹3.9K Cr	₹798 Cr	21.0%	₹524 Cr	₹14.84
2023-03-31	₹4.2K Cr	₹1.1K Cr	25.0%	₹604 Cr	₹17.09
2022-03-31	₹3.9K Cr	₹1.4K Cr	35.0%	₹807 Cr	₹22.31
2021-03-31	₹2.2K Cr	₹520 Cr	24.0%	₹376 Cr	₹10.40
2020-03-31	₹2.0K Cr	₹356 Cr	18.0%	₹128 Cr	₹3.50
2019-03-31	₹2.3K Cr	₹482 Cr	21.0%	₹207 Cr	₹5.64
2018-03-31	₹2.2K Cr	₹402 Cr	18.0%	₹205 Cr	₹5.62
2017-03-31	₹1.4K Cr	₹217 Cr	15.0%	₹127 Cr	₹3.66
2016-03-31	₹1.5K Cr	₹191 Cr	13.0%	₹13 Cr	₹0.35
2015-03-31	₹1.8K Cr	₹377 Cr	21.0%	₹56 Cr	₹1.53
2014-03-31	₹1.6K Cr	₹329 Cr	21.0%	₹92 Cr	₹2.54

Compounded Growth Rates

Sales Growth

3Y+10.5%

5Y+20.9%

10Y+14.4%

Profit Growth

3Y+20.4%

5Y+22.9%

10Y+55.2%

EPS Growth

3Y+20.6%

5Y+23.6%

10Y+56.0%

Peer Comparison

Metals

Stock	Price	Fair Value	MoS%	P/E	ROE	Signal
JINDALSAW Jindal Saw	₹195	₹436.2	+55.3%	10.9	16.0%	UNDERVALUED
STEELCITY Steel City Securities Limited	₹80.6	₹130.7	+38.4%	6.9	12.1%	UNDERVALUED
VSTL Vibhor Steel Tubes Limited	₹109.4	₹143.4	+23.7%	19.3	7.0%	FAIRLY_VALUED
HISARMETAL Hisar Metal Industries Limited	₹143.9	₹186.5	+22.9%	30.5	7.1%	FAIRLY_VALUED
SSWL Steel Strips Wheels Limited	₹190	₹213.8	+11.1%	15.7	13.0%	FAIRLY_VALUED
HINDALCO Hindalco Industries	₹926.8	₹1,039.1	+10.8%	12.7	11.9%	FAIRLY_VALUED
MAHSEAMLES Maharashtra Seamless Limited	₹595	₹656.6	+9.4%	9.4	14.0%	FAIRLY_VALUED
VRAJ Vraj Iron and Steel Limited	₹106	₹113.6	+6.7%	13	6.4%	FAIRLY_VALUED