Sarda Energy & Minerals Ltd (SARDAEN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jindal Stain.

SAIL

Sarda Energy

Jindal Steel

Lloyds Metals

Indian Metals

Kirl. Ferrous

Sunflag Iron

KIOCL

NMDC Steel

Jai Balaji Inds.

Why is Sarda Energy & Minerals Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.69 times

Healthy long term growth as Net Sales has grown by an annual rate of 26.15% and Operating profit at 39.85%

With a growth in Net Profit of 54.54%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 3 consecutive quarters
OPERATING CF(Y) Highest at Rs 885.70 Cr
PBT LESS OI(Q) At Rs 362.55 cr has Grown at 60.80%
PAT(Q) At Rs 323.18 cr has Grown at 65.4%

With ROE of 15.2, it has a Fair valuation with a 2.4 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -0.99%, its profits have risen by 75% ; the PEG ratio of the company is 0.2

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.62% over the previous quarter and collectively hold 7.01% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sarda Energy should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sarda Energy for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sarda Energy

-0.99%

-0.02

45.50%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.15%

EBIT Growth (5y)

39.85%

EBIT to Interest (avg)

6.56

Debt to EBITDA (avg)

1.83

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

0.71

Tax Ratio

25.50%

Dividend Payout Ratio

7.55%

Pledged Shares

Institutional Holding

7.01%

ROCE (avg)

19.49%

ROE (avg)

18.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.39

EV to EBIT

11.94

EV to EBITDA

9.70

EV to Capital Employed

2.30

EV to Sales

3.00

PEG Ratio

0.21

Dividend Yield

0.32%

ROCE (Latest)

19.30%

ROE (Latest)

15.19%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

27What is working for the Company

OPERATING CF(Y)

Highest at Rs 885.70 Cr

PBT LESS OI(Q)

At Rs 362.55 cr has Grown at 60.80%

PAT(Q)

At Rs 323.18 cr has Grown at 65.4%

NET SALES(Q)

At Rs 1,527.78 cr has Grown at 31.86%

-3What is not working for the Company

INTEREST(9M)

At Rs 196.62 cr has Grown at 30.93%

Loading Valuation Snapshot...

Here's what is working for Sarda Energy

Operating Cash Flow - Annually

Highest at Rs 885.70 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 362.55 cr has Grown at 60.80%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 323.18 cr has Grown at 65.4%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 1,527.78 cr has Grown at 31.86%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Sarda Energy

Interest - Nine Monthly

At Rs 196.62 cr has Grown at 30.93%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)