Sharda Motor Industries
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Sharda Motor Industries is navigating a complex landscape characterized by moderating revenue growth and stable profit margins. Management's recent commentary indicates a cautious approach to capital allocation, reflecting the current market sentiment and the need to adapt to evolving industry dynamics, particularly the shift towards electric vehicles (EVs). This transition is crucial as the auto ancillaries sector is positioned for growth, driven by government initiatives and increasing demand for innovative components. Vista's financial outlook anticipates a modest revenue increase, supported by the industry's projected CAGR of approximately 6.76%, despite challenges such as rising commodity prices and global sales declines. The company's balance sheet remains conservatively financed, with low leverage enhancing its financial stability. However, investor sentiment appears cautious, as reflected in recent trading patterns. Over the next 12-24 months, key opportunities lie in capitalizing on the EV trend and enhancing product offerings, while watchpoints include potential cost pressures and geopolitical tensions that could impact margins. Overall, Sharda Motor Industries is well-positioned to leverage its strengths in a growing market, although external factors will require careful monitoring
Why We Like This Stock
Things To Watch Out For
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,809 | 2,837 | 3,397 | 3,858 | 3,902 |
| Profit Before Tax (Cr.) | 372 | 402 | 441 | 436 | 458 |
| PBT Margin | 13.2% | 14.2% | 1298.2% | 11.3% | 11.7% |
| Net Profit (Cr.) | 281 | 305 | 336 | 332 | 348 |
| Earnings Per Share | 49.0 | 53.2 | 58.5 | 57.8 | 60.7 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Sharda Motor Industries Limited manufactures, assembles, trades in, and sells auto components to automobiles and electronics original equipment manufacturers in India. The company provides exhaust systems for passenger vehicles, commercial vehicles, tractors, and generators; suspensions systems, such as arm lower control comp, upper arm assy, rear and front suspension, front axle assy, and assy lower link complete RH products; and roof systems. It also offers seat frames, seat covers, soft top canopies, and pressed part- white goods products, as well as catalytic convertors, independent suspension products, and sheet metal components. In addition, the company provides supply chain management and procurement services. It also exports its products. The company was incorporated in 1986 and is based in New Delhi, India.