Sharda Ispat (513548)
CyclicalScore breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹463.65 |
| Market Cap | ₹236.61 Cr |
| P/E Ratio | 30.39 |
| ROCE | 14.04% |
| ROE | 5.18% |
| Dividend Yield | 0% |
| Profit Growth | -53.99% |
| Debt/Equity | — |
| Sales Growth | -12.47% |
| 52-Week Range | ₹125 — ₹463.65 |
| Sector | Industrial Products |
| Book Value | ₹112.17 |
Strengths
- ROCE of 14.04% indicates some operating efficiency despite weak headline profitability.
- Latest quarter still profitable with net profit of ₹1 crore on sales of ₹48 crore.
- 52-week high of ₹463.65 suggests strong near-term market interest in the stock.
- Annualized sales run-rate of roughly ₹192 crore against a ₹237 crore market cap implies a moderate price-to-sales multiple.
Concerns
- Sales down 12.47% and profit down 53.99% year-on-year, signaling a severe demand or margin compression.
- ROE of just 5.18% and P/B of 4.13 mean investors pay a high premium for low equity returns.
- Piotroski F-Score of 3/9 points to weak financial health and possible operational deterioration.
- Zero dividend yield forces total return reliance on price appreciation alone.
AI Analysis
At ₹463.65, Sharda Ispat carries a market cap of ₹237 crore. For a steel business, that demands scrutiny. The trailing P/E of 30.39 looks rich, especially when sales have fallen 12.47% and profits collapsed 53.99%. In the latest quarter, the company earned just ₹1 crore on ₹48 crore of sales—a margin of about 2%. This is not the profile of a franchise with pricing power. Steel is a cyclical commodity; without a cost advantage or niche, returns revert to average. The numbers confirm: ROE is 5.18%, far below what a shareholder should accept, though ROCE of 14.04% suggests some operating efficiency. The Piotroski F-Score of 3/9 is a red flag, indicating deteriorating financial health. Meanwhile, the stock has run from ₹125 to ₹463.65 within a year. That is a 270% rise without a corresponding improvement in fundamentals. Book value stands at ₹112.17, so the market is paying 4.13 times book for a business whose return on equity is barely above fixed deposits. No dividend, no margin of safety. As Graham would say, price is what you pay, value is what you get. Here, the value remains unproven. I would wait for better earnings visibility and a reasonable margin of safety.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer