Sharda Motor (SHARDAMOTR)
StalwartFairStock Score: 65/100 — STEADY
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹898.25 |
| Market Cap | ₹5,156.65 Cr |
| P/E Ratio | 15.53 |
| ROCE | 34.6% |
| ROE | 36.58% |
| Dividend Yield | 2.08% |
| Profit Growth | -13.4% |
| Debt/Equity | 0.04 |
| Sales Growth | 33.7% |
| Promoter Holding | 64.31% |
| 52-Week Range | ₹700 — ₹1,189.9 |
| Sector | Auto Components |
| Book Value | ₹228.72 |
Strengths
- High capital efficiency: ROE of 36.58% and ROCE of 34.60%
- Very low leverage: Debt/Equity of 0.04
- Reasonable earnings multiple: P/E 16.55 and PEG 0.84
- Strong promoter alignment: 64.31% holding
- Solid fundamentals: Piotroski F-Score 7/9 and dividend yield 1.74%
Concerns
- Profit growth of 11.70% lags sales growth of 27.76%, suggesting possible margin pressure
- P/B of 5.24 means paying a significant premium to book value
- Auto components are cyclical, reflected in the wide 52-week range of ₹700.00 to ₹1,189.90
- Latest quarter net profit of ₹80 crore on sales of ₹882 crore needs to be watched for consistency
AI Analysis
At ₹855.75, Sharda Motor has a market cap of ₹5,350 crore and trades at a P/E of 16.55. That is not a demanding price for a business earning back 36.58% on equity and 34.60% on capital employed. Benjamin Graham taught me to look for businesses that can be run without excessive debt, and this one has a debt-to-equity ratio of just 0.04. The balance sheet gives me comfort. Promoter holding at 64.31% is another positive; the people controlling the company have the same interest as me. The Piotroski score of 7/9 also suggests financial health is solid. The latest quarter shows sales of ₹882 crore and net profit of ₹80 crore, so the operations are generating real money. Sales have grown 27.76%, but profit growth is only 11.70%. That gap is my main concern; I want to see margin improvement, not just revenue expansion. With a P/B of 5.24, I am paying a premium to book value. That premium is justified only if the high returns persist. A PEG of 0.84 makes the valuation look reasonable, but I never rely on one ratio. A dividend yield of 1.74% gives me some income while waiting. The 52-week range of ₹700.00 to ₹1,189.90 reminds me that this is not a boring utility; auto components can be cyclical, and prices can swing. FairStock calls the score steady, and I agree. This feels like a good compounder, but I want a margin of safety. I would rather buy at a lower price or wait until profit growth catches up with the strong sales growth.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer