⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SARDAEN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | SARDAEN | Market Cap | 18,516 Cr. | Current Price | 525 ₹ | High / Low | 640 ₹ |
| Stock P/E | 20.5 | Book Value | 181 ₹ | Dividend Yield | 0.28 % | ROCE | 16.6 % |
| ROE | 12.9 % | Face Value | 1.00 ₹ | DMA 50 | 518 ₹ | DMA 200 | 504 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.06 % | PAT Qtr | 163 Cr. | PAT Prev Qtr | 240 Cr. |
| RSI | 50.9 | MACD | 5.13 | Volume | 4,43,383 | Avg Vol 1Wk | 5,09,076 |
| Low price | 397 ₹ | High price | 640 ₹ | PEG Ratio | -6.71 | Debt to equity | 0.23 |
| 52w Index | 52.9 % | Qtr Profit Var | -13.8 % | EPS | 25.7 ₹ | Industry PE | 20.1 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT declined from ₹240 Cr. to ₹163 Cr. (-13.8%).
- Margins: ROE at 12.9% and ROCE at 16.6% → healthy efficiency.
- Debt: Debt-to-equity ratio of 0.23 → low leverage, strong balance sheet.
- Cash Flow: Stable, supported by consistent operations.
- Return Metrics: EPS at ₹25.7, showing decent earnings power.
💹 Valuation Indicators
- P/E Ratio: 20.5 vs Industry PE of 20.1 → fairly valued.
- P/B Ratio: Price ₹525 / Book Value ₹181 ≈ 2.9.
- PEG Ratio: -6.71 → negative, reflecting weak growth outlook.
- Intrinsic Value: Fairly valued, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in steel and ferro alloys manufacturing.
- Competitive advantage lies in integrated operations and cost efficiency.
- Strong balance sheet with low debt enhances resilience.
- Challenges include cyclical demand and profit volatility.
📈 Entry Zone Recommendation
- Technicals: RSI at 50.9 (neutral), MACD positive, price above 50DMA (518) and 200DMA (504).
- Entry Zone: Accumulation possible near ₹500–520 for long-term investors.
- Holding Guidance: Suitable for long-term holding given strong fundamentals, but growth outlook is modest.
✅ Positive
- Healthy ROCE (16.6%) and ROE (12.9%).
- Low debt-to-equity ratio (0.23).
- DII holdings increased (+0.06%).
⚠️ Limitation
- Quarterly PAT declined (-13.8%).
- Negative PEG ratio indicates weak growth outlook.
- Dividend yield low at 0.28%.
📉 Company Negative News
- PAT dropped from ₹240 Cr. to ₹163 Cr.
- FII holdings decreased (-0.60%).
- Stock corrected from ₹640 to ₹525.
📈 Company Positive News
- Strong ROCE and ROE indicate efficient capital use.
- DII confidence increased slightly (+0.06%).
- MACD positive, showing improving technical momentum.
🌐 Industry
- Steel and ferro alloys industry is cyclical but critical for infrastructure growth.
- Industry PE at 20.1 indicates sector trades at fair valuations.
- Global demand recovery supports long-term opportunities.
🔎 Conclusion
- SARDAEN shows strong fundamentals with low debt and healthy returns.
- Valuations are fair, but profit volatility and weak growth outlook limit upside.
- Best considered for long-term investors with entry near ₹500–520; holding depends on earnings stability and demand recovery.