Sarda Energy & Minerals Limited (SARDAEN) AI Stock Analysis

• Market Cap: ₹184.05B
• Dividend Yield: 0.28%
• Average Volume (3M): 72.54K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.76
• Revenue Growth: 46.66%
• EPS Growth: 75.53%
• Country: IN
• Employees: 1,507
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 5.40
• Shares Outstanding: 352,381,380
• 10 Day Avg. Volume: 29,113
• 30 Day Avg. Volume: 72,539
• PEG Ratio: 0.79
• Price to Book (P/B): 2.96
• Price to Sales (P/S): 3.99
• P/FCF Ratio: 47.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹581.00 ▲(11.13% Upside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

The overall stock score is primarily influenced by strong financial performance, characterized by robust revenue growth and solid profit margins. However, bearish technical indicators and moderate valuation metrics weigh down the score. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth Momentum

Sarda's high revenue growth rate indicates durable market demand and successful volume or price capture across its integrated metals operations. Sustained top-line expansion supports scalable margins, reinvestment capacity and long-term competitiveness in steel and mineral markets.

High and Improving Margins

Robust gross and improving net margins reflect efficient cost control and favourable input-to-output economics in the value chain. Such margin strength supports resilience through cycles, funds capital needs, and underpins sustainable profitability over multiple quarters.

Solid Balance Sheet

A strong equity base with moderate leverage provides financial flexibility for capital projects and downturns, while a healthy ROE shows effective capital use. This balance-sheet positioning supports stable operations and longer-term investment in capacity and integration.

Negative Factors

Free Cash Flow Decline

Negative free cash flow growth driven by heavy capital expenditures reduces discretionary cash available for deleveraging, dividends or opportunistic investments. Persisting capex intensity could strain liquidity unless converted into sustained higher returns.

Increase in Total Debt

Rising absolute debt levels, even with moderate leverage ratios today, raise refinancing and interest-cost risk over time. If earnings or cash conversion falter, higher debt could pressure credit metrics and limit strategic flexibility across cycles.

EBIT Margin Volatility

Variable EBIT performance points to operational sensitivity to input costs, utilization or product mix. Margin volatility can hinder predictable free cash flow and planning, making long-term investment returns and forecasting less reliable for stakeholders.

Sarda Energy & Minerals Limited Business Overview & Revenue Model

Company Description

Sarda Energy & Minerals Limited produces and sells steel products in India. The company operates through Steel, Ferro, and Power segments. Its products include sponge iron, billets, wire rods, ferro alloys, eco-bricks, and HB Wires. The company is also involved in the iron ore mining; and operation of thermal, hydro, and solar power plants. In addition, it exports its products. Sarda Energy & Minerals Limited was incorporated in 1973 and is headquartered in Raipur, India.

How the Company Makes Money

SARDAEN primarily makes money by selling metal products produced from its integrated operations. Key revenue streams typically include: (1) sale of steel and downstream steel products manufactured at its facilities; (2) sale of ferroalloys and other value-added metal inputs used in steelmaking (where produced); (3) sale of mined/processed minerals such as iron ore (where extracted/beneficiated and sold); and (4) sale of power/energy (if generated in-house and sold externally or used to reduce production costs). Earnings are driven by production volumes, realized commodity prices (steel, ferroalloys, iron ore), raw-material and energy costs, plant utilization, and the extent of vertical integration (capturing margin across mining, power, and steelmaking rather than relying on third parties). Specific product-wise revenue split, named long-term customer contracts, and partnership details: null.

Sarda Energy & Minerals Limited Financial Statement Overview

Summary

Sarda Energy & Minerals Limited exhibits strong growth and profitability metrics, with robust revenue growth and solid profit margins. The balance sheet is stable with a strong equity position and moderate leverage. However, the decline in free cash flow growth suggests potential challenges in managing capital expenditures.

Income Statement

Sarda Energy & Minerals Limited has shown strong revenue growth over the years, with a revenue growth rate of 24.5% from 2024 to 2025. The gross profit margin is also robust at 46.6% in 2025, indicating efficient cost management relative to revenue. The net profit margin improved to 14.5% in 2025, reflecting enhanced profitability. EBIT and EBITDA margins are significant, showcasing the company's ability to generate earnings before interest, taxes, depreciation, and amortization. However, the fluctuation in EBIT margin over the years suggests some volatility in operational efficiency.

Balance Sheet

The balance sheet of Sarda Energy & Minerals Limited is stable, with a debt-to-equity ratio of 0.45 in 2025, indicating a moderate level of leverage. The equity ratio stands at 62.1%, highlighting a strong equity base. The return on equity (ROE) is healthy at 11.1%, suggesting effective use of shareholder funds. However, the increase in total debt over the years warrants attention to potential leverage risk.

Cash Flow

The company has demonstrated a positive trend in operating cash flow, which increased by 17.7% from 2024 to 2025. The free cash flow to net income ratio is 0.56, indicating a reasonable conversion of net income into free cash flow. However, the free cash flow growth rate is negative, reflecting a decrease in free cash flow due to significant capital expenditures. The operating cash flow to net income ratio is 1.27, showing good cash generation relative to net earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	57.30B	46.65B	38.82B	42.16B	39.19B	21.99B
Gross Profit	26.68B	20.35B	14.40B	16.85B	18.06B	8.29B
EBITDA	17.92B	12.48B	8.00B	10.56B	13.45B	5.05B
Net Income	10.63B	7.00B	5.23B	6.02B	8.04B	3.75B
Balance Sheet
Total Assets	110.12B	101.25B	60.02B	54.81B	52.98B	45.21B
Cash, Cash Equivalents and Short-Term Investments	22.76B	12.57B	13.26B	7.97B	7.33B	3.12B
Total Debt	26.81B	28.61B	13.66B	14.07B	15.81B	17.14B
Total Liabilities	39.04B	37.32B	20.08B	19.71B	21.90B	21.99B
Stockholders Equity	69.99B	62.86B	38.89B	34.10B	30.04B	22.21B
Cash Flow
Free Cash Flow	10.35B	3.95B	4.87B	4.85B	6.35B	-1.15B
Operating Cash Flow	12.73B	8.86B	7.52B	7.01B	9.17B	1.89B
Investing Cash Flow	-9.35B	-21.32B	-4.34B	-4.31B	-4.01B	-1.86B
Financing Cash Flow	-3.57B	12.00B	-2.22B	-4.79B	-3.31B	-696.80M

Sarda Energy & Minerals Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 522.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SARDAEN, the sentiment is Positive. The current price of 522.8 is below the 20-day moving average (MA) of 529.09, above the 50-day MA of 508.93, and above the 200-day MA of 510.46, indicating a neutral trend. The MACD of 5.70 indicates Positive momentum. The RSI at 49.34 is Neutral, neither overbought nor oversold. The STOCH value of 20.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SARDAEN.

Sarda Energy & Minerals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAITHANALL	77 Outperform	₹26.68B	8.35	―	1.65%	21.44%	-46.24%
GPIL	75 Outperform	₹174.60B	28.50	―	0.39%	-0.96%	-11.90%
IMFA	68 Neutral	₹67.71B	15.33	―	1.05%	-6.18%	-23.70%
MAHSEAMLES	68 Neutral	₹74.83B	7.74	―	1.82%	0.81%	-7.11%
SHYAMMETL	66 Neutral	₹216.84B	29.89	―	0.77%	18.36%	13.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SARDAEN	61 Neutral	₹184.05B	24.09	―	0.28%	46.66%	75.53%

Sarda Energy & Minerals Limited Corporate Events

Supreme Court Clears Sarda Energy’s Resolution Plan for SKS Power Generation

Sarda Energy & Minerals Limited has received a favorable ruling from the Supreme Court of India, which has dismissed all appeals filed by unsuccessful resolution applicants challenging the approval of the company’s resolution plan for SKS Power Generation (Chhattisgarh) Ltd. This decision upholds the earlier order of the National Company Law Tribunal issued in August 2024 and clears a major legal hurdle for Sarda Energy’s planned acquisition of the power producer under the corporate insolvency resolution process, potentially strengthening its power portfolio and consolidating its position in the energy sector.

Sarda Energy & Minerals Shares Q3 FY26 Investor Presentation

Sarda Energy & Minerals Limited has released an investor presentation detailing its financial and operational performance for the third quarter of fiscal year 2026. The presentation, prepared in line with market disclosure regulations, has been shared with stock exchanges and made available on the company’s website to provide analysts and investors with updated insight into its business progress.

By circulating the Q3 FY26 investor deck across exchanges and to market participants, the company aims to enhance transparency and maintain proactive communication with stakeholders. This step supports informed decision-making among investors and underscores Sarda Energy & Minerals’ effort to position itself as a compliant and growth-focused player in the energy, minerals, and metals industry.

Sarda Energy & Minerals Closes Trading Window Ahead of Q3 FY26 Results Board Meeting

Sarda Energy & Minerals Limited has notified the stock exchanges that its trading window for dealing in the company’s securities will remain closed for directors, key managerial personnel and other designated employees in line with SEBI (Prohibition of Insider Trading) Regulations, 2015. The board of directors is scheduled to meet on 7 February 2026 to consider the unaudited financial results for the quarter ended 31 December 2025, and the trading window will stay shut until 48 hours after the conclusion of this meeting, i.e., up to 9 February 2026, reinforcing the company’s adherence to insider trading compliance norms and protecting market integrity for investors.

ICRA Upgrades Credit Rating of Sarda Energy’s Hydro Power Subsidiary to A+ (Stable)

Sarda Energy & Minerals Limited announced that rating agency ICRA has upgraded the credit ratings of various long-term credit facilities of its wholly owned subsidiary, Chhattisgarh Hydro Power LLP, from ICRA A (Stable) to ICRA A+ (Stable). The upgrade covers term loans, cash credit, and non-fund-based limits totaling over ₹185 crore, signaling strengthened creditworthiness for the hydro power arm, which may enhance its borrowing capacity and financial flexibility and reflects positively on the group’s overall risk profile and standing with lenders and investors.

Sarda Energy & Minerals Infuses ₹48 Crore into Renewable Energy Subsidiary

Sarda Energy & Minerals Limited has infused an additional ₹48.23 crore into its wholly owned subsidiary Sarda Energy Limited by subscribing to a rights issue of 283,693 equity shares at a premium, keeping its ownership at 100%. The funds will be used primarily to reduce Sarda Energy Limited’s debt and support its day-to-day operational needs in the group’s renewable energy business, signalling continued financial backing for the subsidiary, which reported revenues between ₹14–18 crore over the past three financial years and plays a role in the parent’s energy diversification strategy.