SARDAEN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | SARDAEN | Market Cap | 20,845 Cr. | Current Price | 592 ₹ | High / Low | 640 ₹ |
| Stock P/E | 23.1 | Book Value | 181 ₹ | Dividend Yield | 0.25 % | ROCE | 16.6 % |
| ROE | 12.9 % | Face Value | 1.00 ₹ | DMA 50 | 549 ₹ | DMA 200 | 517 ₹ |
| Chg in FII Hold | -0.04 % | Chg in DII Hold | 0.39 % | PAT Qtr | 163 Cr. | PAT Prev Qtr | 240 Cr. |
| RSI | 59.2 | MACD | 18.5 | Volume | 4,35,991 | Avg Vol 1Wk | 11,62,842 |
| Low price | 402 ₹ | High price | 640 ₹ | PEG Ratio | -7.56 | Debt to equity | 0.23 |
| 52w Index | 79.7 % | Qtr Profit Var | -13.8 % | EPS | 25.7 ₹ | Industry PE | 22.9 |
📊 SARDAEN demonstrates solid fundamentals with strong ROCE (16.6%) and healthy ROE (12.9%), supported by low debt-to-equity (0.23). EPS of ₹25.7 provides earnings visibility, and valuation appears fair with P/E (23.1) close to industry average (22.9). However, profitability has weakened with PAT declining (₹163 Cr. vs ₹240 Cr.) and PEG ratio (-7.56) signaling poor growth relative to valuation. Current price ₹592 is above DMA 50 (₹549) and DMA 200 (₹517), showing bullish momentum. Entry zone is attractive near ₹540–560 for accumulation.
💡 Long-term investors may hold with a 3–5 year horizon if ROCE sustains above 15% and earnings stabilize. Exit strategy: partial profit booking near ₹620–640 resistance or full exit if profitability continues to decline.
Positive
- 📈 Strong ROCE (16.6%) and ROE (12.9%).
- 💰 Low debt-to-equity ratio (0.23), ensuring financial stability.
- 🔎 EPS of ₹25.7 supports earnings strength.
Limitation
- ⚠️ PAT declined from ₹240 Cr. to ₹163 Cr. QoQ.
- 📉 PEG ratio (-7.56) indicates poor growth outlook.
- 📊 Dividend yield is modest (0.25%), limiting passive income.
Company Negative News
- 📉 FII holding decreased (-0.04%), showing reduced foreign investor confidence.
- 📊 Quarterly profit variation negative (-13.8%).
Company Positive News
- 📈 DII holding increased (+0.39%), reflecting domestic investor support.
- 📊 Technicals: RSI at 59.2 and MACD positive (18.5), showing bullish momentum.
Industry
- 🏭 Industry PE at 22.9, showing SARDAEN trades fairly valued.
- 📈 Steel and energy sector benefits from infrastructure growth and industrial demand.
Conclusion
⚖️ SARDAEN is a moderately attractive long-term investment with strong ROCE, decent ROE, and low debt. However, declining profits and weak PEG ratio limit upside potential. Best strategy: accumulate near ₹540–560, hold for 3–5 years, and consider exit near ₹620–640 unless earnings growth accelerates.
This structured HTML report captures SARDAEN’s fundamentals, valuation, and sector context with clear entry/exit guidance. Would you like me to extend this into a peer benchmarking overlay against Tata Steel, JSW Steel, and Jindal Steel to highlight relative strengths and valuation positioning in the steel sector?