Sarda Energy & Minerals Ltd logo

Sarda Energy & Minerals Ltd

SARDAEN NSE

Incorporated in 1973, Sarda Energy & Minerals Limited (SEML) is the flagship company of Sarda Group and is engaged in the production of steel, ferro alloys and power. [1]

AI Verdict: BUY Confidence: 6%

Sarda Energy & Minerals offers compelling value at a PE of 16.5x with strong profit growth of 24% CAGR over 5 years and consistent ROE of 15-17%. However, deteriorating working capital efficiency and lack of analyst coverage warrant caution, making this a conviction buy only for investors with higher risk tolerance.

Key Fundamentals

SmallcapIron & SteelMetals & Mining
Market Cap
₹18,356 Cr
Volatility
Moderate
P/E Ratio
16.61
EBITDA
₹1,741 Cr
Return on Equity
17.24%
Debt to Equity
0.42
Book Value
₹209.15
EPS
₹15.69
52W High
₹639.75
52W Low
₹421

Technical Indicators

Key Insights

Strengths

1
  • Company has delivered good profit growth of 24.0% CAGR over last 5 years

Weaknesses

1
  • Working capital days have increased from 93.9 days to 165 days

Growth Rate

Revenue Growth
17.20% ↗
Net Income Growth
110.13% ↗
Cash Flow Change
19.29% ↗
ROE
-16.26% ↗
ROCE
-17.91% ↘
EBITDA Margin (Avg.)
0.92% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
BUY
Risk medium

Sarda Energy & Minerals offers compelling value at a PE of 16.5x with strong profit growth of 24% CAGR over 5 years and consistent ROE of 15-17%. However, deteriorating working capital efficiency and lack of analyst coverage warrant caution, making this a conviction buy only for investors with higher risk tolerance.

Bull Case 7
  • Strong profit CAGR of 24% over 5 years significantly outpaces sales growth, indicating improving margins and operational leverage
  • TTM profit growth of 61% signals accelerating earnings momentum in the current cycle
  • PE of 16.5x is reasonable for a commodity company delivering 21% stock CAGR over 1 year and 50% over 5 years
  • Consistent ROE in the 15-17% range over 3, 5, and 10 years demonstrates disciplined capital allocation through commodity cycles
  • Compounded sales growth of 23% TTM shows strong topline acceleration compared to 11% 3-year CAGR, suggesting a volume or price upcycle
  • Market cap of Rs 18,192 crore with a PB of 2.48x is attractive for a capital-intensive business generating 16% ROE
  • 10-year stock CAGR of 47% demonstrates long-term wealth creation capability across multiple commodity cycles
Bear Case 8
  • Working capital days have nearly doubled from 93.9 days to 165 days, indicating significant cash flow deterioration and potential inventory buildup
  • Zero analyst coverage means no institutional scrutiny, limited price discovery, and potential liquidity risk for large positions
  • Dividend yield of just 0.29% suggests the company retains most earnings but working capital bloat raises questions about reinvestment efficiency
  • Commodity sector is inherently cyclical — the 61% TTM profit growth may reflect a cycle peak rather than sustainable earnings power
  • Debt-to-equity ratio unavailable in reported data, creating uncertainty about leverage risk in a capital-intensive business
  • 52-week high and low data unavailable (reported as 0), limiting technical and valuation range analysis
  • 10-year sales CAGR of only 14% versus 59% profit CAGR suggests margin expansion may be unsustainable and could mean-revert in a downcycle
  • PB ratio of 2.48x means the stock is not a deep value play and any earnings disappointment could trigger derating

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Headwinds 1
  • Hydro plant shut after tower collapse Jun 18

    Subsidiary hydro plant shut on June 18, 2026 due to transmission tower collapse from heavy rains. Losses are insured but operational disruption is a near-term risk.

Positives 2
  • FY26 profit jumps 58% to ₹1,109Cr Jun 2

    FY26 PAT rose 58% to INR 1,109 crores driven by 44% EBITDA growth to INR 2,025 crores. Board recommended a 200% dividend.

  • SC upholds SKS Power resolution plan May 25

    Supreme Court upheld Sarda Energy's resolution plan for SKS Power, clearing the legal path for a 4x300 MW capacity expansion targeted by FY30.

Neutral 2
  • Investor meetings scheduled Jun 10-16 Jun 5

    Investor meetings scheduled for June 10 and June 16, 2026, covering publicly available information only.

  • Q4FY26 conference call recording shared May 25

    Audio recording link for the Q4FY26 results conference call held on May 25, 2026 was shared with investors.

TL;DR: Sarda Energy delivered a strong FY26 with 58% PAT growth and a generous 200% dividend, while the Supreme Court ruling on SKS Power de-risks its long-term 1,200 MW expansion plan. The hydro plant shutdown is a short-term operational setback but losses are insured. The trend is firmly improving with robust earnings momentum and a clearer growth runway into FY30.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,076
1,052
1,001
925
889
926
1,159
1,319
1,239
1,633
1,528
1,276
1,254
Expenses
862
837
759
737
737
666
821
950
968
1,016
1,016
965
906
Operating Profit
214
215
242
188
152
261
337
369
271
617
512
311
348
OPM %
20%
20%
24%
20%
17%
28%
29%
28%
22%
38%
34%
24%
28%
Other Income
24
83
24
32
42
75
51
0
46
80
68
95
5
Interest
28
35
35
31
28
36
50
64
70
62
64
64
54
Depreciation
45
45
46
46
46
45
62
78
87
81
85
86
88
PBT
165
218
186
143
121
255
276
226
160
553
431
255
210
Tax %
30%
20%
19%
25%
37%
24%
26%
17%
41%
24%
27%
28%
33%
Net Profit
115
172
149
114
88
198
203
200
100
437
328
190
155
EPS in Rs
3.44
4.85
3.99
3.32
2.68
5.64
5.55
5.6
3.07
12.33
9.17
5.4
4.48
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
1,760
1,480
1,434
2,174
2,324
2,000
2,199
3,914
4,212
3,868
4,643
5,690
Expenses
1,383
1,289
1,217
1,772
1,842
1,644
1,679
2,559
3,152
3,070
3,406
3,903
Operating Profit
377
191
217
402
482
356
520
1,355
1,060
798
1,237
1,787
OPM %
21%
13%
15%
18%
21%
18%
24%
35%
25%
21%
27%
31%
Other Income
-77
35
96
63
17
-17
130
43
49
181
172
247
Interest
120
112
94
97
99
82
79
147
124
128
220
244
Depreciation
93
75
69
73
76
78
75
143
178
183
271
341
PBT
87
39
150
294
324
179
495
1,108
807
667
918
1,449
Tax %
35%
68%
15%
30%
36%
24%
23%
27%
25%
24%
26%
27%
Net Profit
56
13
127
205
207
128
376
807
604
524
702
1,109
EPS in Rs
1.53
0.35
3.66
5.62
5.64
3.5
10.4
22.31
17.09
14.84
19.86
31.38
Div. Payout %
20%
143%
11%
9%
9%
14%
7%
3%
9%
7%
8%
6%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
36
36
36
36
36
36
36
36
35
35
35
35
Reserves
1,174
1,187
1,322
1,540
1,707
1,834
2,182
2,968
3,375
3,853
6,251
7,335
Borrowings
1,482
1,221
1,363
1,386
1,395
1,694
1,714
1,581
1,407
1,366
2,861
2,632
Other Liabilities
352
382
395
451
543
538
587
714
664
747
977
1,369
Total Liabilities
3,044
2,827
3,115
3,413
3,682
4,102
4,518
5,298
5,481
6,002
10,125
11,371
Fixed Assets
1,333
1,226
1,183
1,358
1,349
1,323
1,287
2,853
2,907
2,853
5,845
6,109
CWIP
441
594
799
783
1,063
1,374
1,616
133
132
251
621
463
Investments
279
205
226
241
213
191
266
500
422
659
792
1,645
Other Assets
991
803
907
1,030
1,057
1,214
1,349
1,812
2,020
2,239
2,867
3,154
Total Assets
3,044
2,827
3,115
3,413
3,682
4,102
4,518
5,298
5,481
6,002
10,125
11,371
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-36
469
177
300
480
336
188
917
701
742
886
1,735
Investing
330
-148
-241
-156
-399
-415
-186
-466
-431
-423
-2,132
-1,166
Financing
-385
-383
63
-86
-106
199
-70
-331
-479
-223
1,200
-519
Net Cash Flow
-91
-61
-1
58
-24
120
-68
120
-208
96
-46
50
Free Cash Flow
-50
309
-63
49
155
-16
-115
644
485
477
396
1,400
CFO/OP
-2
254
89
90
123
112
52
87
88
112
74
98
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
20
31
27
22
15
23
23
16
16
10
17
18
Inventory Days
177
84
133
102
107
141
157
107
106
80
115
99
Days Payable
29
42
59
39
46
72
67
46
24
26
28
22
Cash Conversion Cycle
168
72
101
85
76
92
113
77
98
64
105
96
Working Capital Days
7
117
154
99
96
120
97
53
67
49
68
165
ROCE %
12%
6%
8%
14%
13%
8%
15%
29%
19%
15%
15%
17%

Shareholding Pattern

As of Mar 2026
Promoters 73.16%
Public 15.65%
Others 4.37%
FIIs 3.51%
DIIs 3.32%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
72.50%
72.50%
72.50%
72.50%
72.50%
71.01%
72.64%
72.64%
72.64%
72.64%
72.64%
72.64%
72.64%
72.64%
73.16%
73.16%
73.16%
73.16%
73.16%
73.16%
73.16%
FIIs
0.00%
0.42%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
2.69%
2.81%
2.69%
2.50%
2.28%
2.66%
3.47%
3.83%
4.13%
3.54%
3.51%
DIIs
0.65%
0.89%
0.73%
0.00%
0.00%
0.00%
2.82%
3.45%
3.76%
3.76%
3.92%
3.85%
3.61%
3.75%
4.27%
4.35%
3.78%
3.81%
2.88%
2.92%
3.32%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
16.96%
17.08%
16.43%
16.56%
16.25%
15.93%
16.02%
15.76%
15.52%
15.65%
15.69%
15.82%
16.48%
16.75%
16.03%
15.62%
15.50%
15.24%
15.66%
16.01%
15.65%
Others
9.90%
9.11%
10.35%
10.95%
11.26%
13.06%
8.51%
8.15%
8.08%
7.96%
5.05%
4.88%
4.57%
4.36%
4.26%
4.20%
4.10%
3.96%
4.17%
4.37%
4.37%
No. of Shareholders
18,973
24,939
25,959
24,941
25,400
28,796
27,897
26,581
26,242
26,633
38,807
42,082
53,543
53,957
71,216
76,037
85,188
85,676
95,666
95,338
90,809

Documents

1
Concall - Oct 2017 Oct 2017
2
Concall - Feb 2018 Feb 2018
3
Concall - Feb 2018 Feb 2018
4
Concall - Jun 2018 Jun 2018
5
Concall - Nov 2018 Nov 2018

Frequently Asked Questions about Sarda Energy & Minerals Ltd

What does Sarda Energy & Minerals Ltd do?
Incorporated in 1973, Sarda Energy & Minerals Limited (SEML) is the flagship company of Sarda Group and is engaged in the production of steel, ferro alloys and power. [1]
Where is Sarda Energy & Minerals Ltd (SARDAEN) listed?
Sarda Energy & Minerals Ltd is listed on the Indian stock exchanges. It is listed on NSE: SARDAEN and BSE: 504614. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Sarda Energy & Minerals Ltd belong to?
Sarda Energy & Minerals Ltd operates in the Commodities sector within the Ferrous Metals industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Sarda Energy & Minerals Ltd?
Sarda Energy & Minerals Ltd has a market capitalisation of approximately ₹18355.54 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Sarda Energy & Minerals Ltd?
The Price-to-Earnings (PE) ratio of Sarda Energy & Minerals Ltd is 16.61. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Sarda Energy & Minerals Ltd?
Over the past 52 weeks, Sarda Energy & Minerals Ltd has traded between a low of ₹421 and a high of ₹639.75. This range helps investors understand the stock's price volatility and recent trading levels.
Does Sarda Energy & Minerals Ltd pay dividends?
Yes, Sarda Energy & Minerals Ltd has a dividend yield of 0.29%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Sarda Energy & Minerals Ltd?
Sarda Energy & Minerals Ltd has a Return on Equity (ROE) of 17.24%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Sarda Energy & Minerals Ltd on Tapetide?
On Tapetide, you can view Sarda Energy & Minerals Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Incorporated in 1973, Sarda Energy & Minerals Limited (SEML) is the flagship company of Sarda Group and is engaged in the production of steel, ferro alloys and power. [1]

Website seml.co.in
CEO Mr. Kamal Kishore Sarda B.E. (Mech)
Employees 1,905
Listed 2009-12-03
Face Value ₹ 1
Issued Size 35,23,81,270

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