Sandhar Technologies Limited is Rated Buy

Current Rating and Its Significance

MarketsMOJO’s 'Buy' rating for Sandhar Technologies Limited indicates a positive outlook on the stock’s potential for investors seeking growth within the Auto Components & Equipments sector. This rating, reflecting a Mojo Score of 71.0, suggests that the stock is favourably positioned relative to its peers and market benchmarks. The upgrade from 'Hold' to 'Buy' on 15 Nov 2025 was driven by improvements across key parameters, but it is essential to understand how the stock stands today, based on the latest data available.

Quality Assessment

As of 12 February 2026, Sandhar Technologies demonstrates a strong quality profile. The company has maintained healthy long-term growth, with operating profit expanding at an annualised rate of 43.26%. This robust growth is supported by consistent positive results over the last two consecutive quarters. The latest six-month profit after tax (PAT) stands at ₹108.91 crores, reflecting a significant growth rate of 55.65%. Return on Capital Employed (ROCE) for the half-year period is at a commendable 13.29%, underscoring efficient capital utilisation. These metrics highlight the company’s operational strength and effective management, which are critical factors in the quality grade assigned.

Valuation Perspective

Currently, Sandhar Technologies is valued attractively relative to its sector peers. The stock trades at an Enterprise Value to Capital Employed ratio of 1.9, which is below the average historical valuations of comparable companies in the auto components space. The company’s ROCE of 10.1% further supports this attractive valuation. Additionally, the Price/Earnings to Growth (PEG) ratio stands at a low 0.6, indicating that the stock’s price growth is not overstretched relative to its earnings growth. This valuation profile suggests that investors are receiving good value for the growth prospects embedded in the stock price.

Financial Trend Analysis

The financial trend for Sandhar Technologies remains positive as of 12 February 2026. Net sales for the latest quarter reached ₹1,184.64 crores, growing at a rate of 21.67%. Profitability has kept pace with revenue growth, as evidenced by the 32.3% increase in profits over the past year. The stock’s one-year return of 34.80% significantly outperforms the broader market benchmark, with the BSE500 index returning approximately 13.00% over the same period. This market-beating performance is a testament to the company’s strong financial momentum and operational execution.

Technical Outlook

From a technical standpoint, Sandhar Technologies is mildly bullish. The stock has shown resilience with a one-day gain of 4.07% and a six-month return of 31.28%. Shorter-term movements have been mixed, with a slight decline of 0.88% over the past month but a modest gain of 1.10% over three months. The technical grade reflects a positive but cautious momentum, suggesting that while the stock is trending upward, investors should remain attentive to market fluctuations and volume trends.

Institutional Interest and Market Position

Institutional investors have increased their stake in Sandhar Technologies by 0.52% over the previous quarter, now collectively holding 17.04% of the company’s shares. This growing institutional participation is a positive signal, as these investors typically conduct thorough fundamental analysis before increasing exposure. Their involvement often lends stability and confidence to the stock’s outlook. Furthermore, Sandhar Technologies is classified as a small-cap company within the Auto Components & Equipments sector, offering investors exposure to a niche segment with promising growth potential.

Implications for Investors

For investors, the 'Buy' rating on Sandhar Technologies Limited signals a favourable risk-reward profile supported by strong fundamentals and an attractive valuation. The company’s consistent profit growth, efficient capital utilisation, and positive financial trends provide a solid foundation for future performance. The mild bullish technical outlook suggests potential for further gains, although investors should monitor market conditions and company updates closely.

Given the stock’s small-cap status, investors should also consider the inherent volatility and liquidity factors associated with this segment. However, the increasing institutional interest and market-beating returns over the past year reinforce the stock’s appeal as a growth-oriented investment within the auto components sector.

Summary

In summary, Sandhar Technologies Limited’s current 'Buy' rating by MarketsMOJO, last updated on 15 Nov 2025, is underpinned by a combination of strong quality metrics, attractive valuation, positive financial trends, and a cautiously optimistic technical stance. As of 12 February 2026, the company continues to demonstrate robust growth and market outperformance, making it a compelling consideration for investors seeking exposure to the auto components industry.

Key Metrics at a Glance (As of 12 February 2026):

• Mojo Score: 71.0 (Buy Grade)
• Operating Profit Growth (Annualised): 43.26%
• PAT Growth (Latest 6 months): 55.65%
• ROCE (Half Year): 13.29%
• Net Sales Growth (Quarterly): 21.67%
• Enterprise Value to Capital Employed: 1.9
• PEG Ratio: 0.6
• 1-Year Stock Return: +34.80%
• Institutional Holding: 17.04%

Investors should weigh these factors carefully in the context of their portfolio objectives and risk tolerance.

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