SARDAEN - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:16 pm
Back to Fundamental ListFundamental Rating: 3.7
| Stock Code | SARDAEN | Market Cap | 18,024 Cr. | Current Price | 512 ₹ | High / Low | 640 ₹ |
| Stock P/E | 19.3 | Book Value | 181 ₹ | Dividend Yield | 0.29 % | ROCE | 16.6 % |
| ROE | 12.9 % | Face Value | 1.00 ₹ | DMA 50 | 514 ₹ | DMA 200 | 497 ₹ |
| Chg in FII Hold | 0.31 % | Chg in DII Hold | -0.94 % | PAT Qtr | 240 Cr. | PAT Prev Qtr | 386 Cr. |
| RSI | 53.7 | MACD | -2.63 | Volume | 3,46,536 | Avg Vol 1Wk | 4,61,830 |
| Low price | 397 ₹ | High price | 640 ₹ | PEG Ratio | -6.33 | Debt to equity | 0.23 |
| 52w Index | 47.2 % | Qtr Profit Var | 95.5 % | EPS | 26.4 ₹ | Industry PE | 20.9 |
📊 Financials: SardaEN has a market cap of ₹18,024 Cr. Current price is ₹512 with a 52-week high/low of ₹640/₹397. PAT this quarter is ₹240 Cr vs ₹386 Cr in the previous quarter, showing decline. ROCE at 16.6% and ROE at 12.9% indicate healthy efficiency. Debt-to-equity ratio of 0.23 reflects low leverage.
💹 Valuation: Stock P/E is 19.3, close to industry PE of 20.9, suggesting fair valuation. Book value is ₹181, giving a P/B ratio of ~2.83. PEG ratio at -6.33 indicates weak earnings growth relative to valuation. EPS is ₹26.4, showing decent profitability.
🏭 Business Model: SardaEN operates in the steel and ferro alloys sector. Competitive advantage lies in integrated operations, cost efficiency, and diversified product base. However, cyclical demand in metals impacts profitability consistency.
📈 Entry Zone: Technically, DMA 50 (₹514) and DMA 200 (₹497) suggest support zones. Entry is favorable near ₹490–₹510 if price consolidates. Current RSI at 53.7 indicates neutral momentum.
🕰️ Long-Term Holding: Strong ROCE, low debt, and fair valuation support long-term holding. Investors can accumulate on dips near support zones for compounding, while monitoring cyclical industry risks.
Positive
- ✅ Healthy ROCE (16.6%) and ROE (12.9%)
- ✅ Low debt-to-equity ratio (0.23)
- ✅ Fair valuation (P/E 19.3 vs industry 20.9)
- ✅ EPS of ₹26.4 indicates profitability
Limitation
- ⚠️ Quarterly PAT decline (386 Cr → 240 Cr)
- ⚠️ PEG ratio negative (-6.33)
- ⚠️ Dividend yield low (0.29%)
Company Negative News
- 📉 DII holding reduced (-0.94%)
- 📉 Profitability under pressure in recent quarter
Company Positive News
- 📈 FII holding increased (+0.31%)
- 📈 Strong long-term efficiency metrics (ROCE & ROE)
Industry
- 🏭 Steel and ferro alloys industry cyclical but supported by infrastructure demand
- 🏭 Industry PE at 20.9 highlights fair sector valuation
Conclusion
🔎 SardaEN is fundamentally strong with healthy return ratios, low debt, and fair valuation. Entry zone lies near ₹490–₹510. Long-term investors can accumulate on dips, while monitoring cyclical risks in the metals sector.
Would you like me to extend this with a peer benchmarking overlay comparing SardaEN against other steel and ferro alloy companies, or a sector scan to highlight undervalued players in the metals industry?
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