SARDAEN - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.0

📊 Core Financial Analysis

Profitability & Returns

EPS: ₹19.9 — solid earnings for a ₹446 stock.

ROE: 13.8% & ROCE: 15.6% — strong return metrics, indicating efficient capital use.

PAT Qtr: ₹101 Cr vs ₹197 Cr — drop from previous quarter, but Qtr Profit Var: +13.4% YoY, showing yearly growth.

Debt & Leverage

Debt-to-Equity: 0.46 — moderate and manageable, supports expansion without over-leverage.

Dividend yield is low (0.22%) — typical for growth-oriented industrials reinvesting profits.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 22.5 Fairly valued vs industry PE of 22.4 — reasonable entry point

P/B Ratio ~2.5 Acceptable given ROE and growth profile

PEG Ratio -4.92 Negative PEG suggests earnings volatility, but not necessarily poor fundamentals

Intrinsic Value ~₹470–₹500 Current price is slightly below fair value, offering upside

🏢 Business Model & Competitive Edge

Operates in ferro alloys, power, and steel — cyclical but essential sectors.

Competitive advantage lies in vertical integration, captive power, and cost efficiency.

Strong domestic demand and infrastructure push support long-term growth.

Exposure to global commodity cycles may cause earnings volatility.

📉 Technical & Sentiment Indicators

RSI: 52.4 — neutral zone, no strong momentum.

MACD: 0.08 — flat, indicating consolidation.

Volume slightly above average — steady interest.

DMA 50 ≈ Current Price — stable technical base.

FII & DII holdings up — positive institutional sentiment.

🧠 Investment Guidance

🔍 Entry Zone (If Undervalued)

Ideal Buy Range: ₹420–₹440

Near DMA support and slightly below intrinsic value.

Good entry for long-term accumulation.

📈 Long-Term Holding View

Strong candidate for long-term holding

Solid ROE/ROCE and fair valuation.

Beneficiary of industrial and infrastructure growth.

Watch for earnings consistency and commodity price impact.

Would you like a peer comparison with companies like Maithan Alloys or Jindal Stainless to assess sector positioning?

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