Sharda Motor (SHARDAMOTR)

FairStock Score: 65/100 — STEADY

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

Key Financials

AI Analysis

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

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.

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