Mehabe score: 6 G Factor: 7 Piotski Score: 7 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 7 and Piotski score of 7.
Description
Sarda Energy & Minerals is engaged in the business of steel manufacturing facility starting from iron ore mining to the finished steel in the form of wire rod and H.B. wire. The Company is also a leading manufacturer and exporter of Ferro Alloys enjoyingSite:SARDAENMain Symbol:SARDAEN
Stock trades at 802.0, above its 50dma 633.06. It also trades above its 200dma 465.59. The stock remains bullish on techicals
The 52 week high is at 850.90 and the 52week low is at 162.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 104.86% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 8.24% over past five years.
– has a low return on equity of 12.99% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 16.0x. Apollo Tricoat trades at the industry’s max P/E of 47.73x. SARDAEN trades at a P/E of 7.49x
– Industry’s mean G-Factor is 6.1 while the mean Piotski score is 8.0. SARDAEN has a G-Factor of 7 and Piotski scoreof 7.
– Average 1 month return for industry is 10.0%. The max 1- month return was given by Godawari Power: a return of 28.03 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 832.0 cr compared to Rs 347.0 cr for period ended Jun 2020, a rise of 139.8%
Operating Profits reported at Rs 272.0 cr for period ended Jun 2021 vis-vis 54.0 for period ended Jun 2020 .
Operating Margins expanded 1713.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 46.62 compared to Rs 38.68 for previous quarter ended Mar 2021 and Rs 9.84 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2684.0 cr for period ended TTM vis-vis sales of Rs 2199.0 cr for the period ended Mar 2021, a healthy growth of 18.1%. The 3 year sales cagr stood at 4.9%.
Operating margins expanded to 27.0% for period ended TTM vis-vis 24.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 507.0 cr for period ended TTM vis-vis sales of Rs 375.0 cr for the period ended Mar 2021, rising 26.0%.
Company recorded a healthy Net Profit CAGR of 35.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 19.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 388% on a 1 Year basis vis-vis a return of 27% over the last 3 Years. – The compounded sales growth on a TTM bassis is 10% vis-vis a compounded sales growth of 0% over the last 3 Years. – The compounded profit growth on a TTM basis is 200% vis-vis a compounded profit growth of 23% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.76% vis-vis 0.11% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 24.43% vis-vis 25.74% for Mar 2021
Conclusion
– has delivered good profit growth of 104.86% CAGR over last 5 years – The company has delivered a poor sales growth of 8.24% over past five years.
– has a low return on equity of 12.99% for last 3 years.
– might be capitalizing the interest cost
