Sharda Ispat (513548)

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer