Sharda Motor Industries Ltd. (SHARDAMOTR) AI Stock Analysis

• Market Cap: ₹48.78B
• Dividend Yield: 2.75%
• Average Volume (3M): 4.40K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.28
• Revenue Growth: 6.96%
• EPS Growth: 6.33%
• Country: IN
• Employees: 917
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 13.01
• Shares Outstanding: 57,407,707
• 10 Day Avg. Volume: 2,474
• 30 Day Avg. Volume: 4,402
• PEG Ratio: 0.93
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 11.80
• 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: 66 Neutral
• Price Target: ₹997.00 ▲(3.64% Upside)

Sharda Motor Industries Ltd. shows strong financial performance with robust revenue growth and a solid balance sheet. However, technical indicators suggest bearish momentum, which impacts the overall score. The valuation is moderate, supported by a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and product demand, supporting long-term business sustainability.

Balance Sheet Strength

A robust balance sheet with low leverage enhances financial stability and provides flexibility for future investments.

Profitability

Improved profitability margins reflect efficient operations and cost management, contributing to sustainable financial health.

Negative Factors

Cash Flow Growth

Declining cash flow growth could limit the company's ability to invest in new opportunities and maintain financial flexibility.

Cost Pressures

Decreasing gross margins may indicate rising costs, which could pressure profitability if not managed effectively.

Cash Flow Sustainability

While cash flow is strong, the need for improvement in sustaining growth momentum could impact long-term financial health.

Sharda Motor Industries Ltd. Business Overview & Revenue Model

Company Description

Sharda Motor Industries Limited manufactures, assembles, and sells auto components and white goods components to automobiles and electronics original equipment manufacturers in India. It offers exhaust systems for passenger vehicles, commercial vehicles, and tractors; 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. The company also provides canopies, seat trim and seat assemblies, rear seats, front cushions, hinge assly rear backs, frame comp rear backs, and risers, as well as catalytic converters, seat covers for two wheelers and four wheelers, and pressed part white goods products. The company also exports its products. Sharda Motor Industries Limited was incorporated in 1986 and is based in New Delhi, India.

How the Company Makes Money

Sharda Motor Industries generates revenue primarily through the sale of automotive components to Original Equipment Manufacturers (OEMs) and the aftermarket. Key revenue streams include the production and supply of suspension systems, steering systems, and other essential automotive parts. The company benefits from strategic partnerships with leading automotive manufacturers, which helps secure long-term contracts and consistent demand for its products. Additionally, SHARDAMOTR is involved in research and development to enhance product quality and efficiency, contributing to its competitive edge and profitability in the market.

Sharda Motor Industries Ltd. Financial Statement Overview

Summary

Sharda Motor Industries Ltd. demonstrates strong financial performance with significant revenue growth and improved profitability. The balance sheet is robust with low leverage and strong equity management. Cash flow is positive but has room for improvement in sustaining growth momentum.

Income Statement

Sharda Motor Industries Ltd. demonstrates strong revenue growth, with a significant increase from ₹8,585 million in 2020 to ₹28,365 million in 2025. Gross profit margin has been relatively stable, maintaining healthy levels above 18% over the years. The company has also improved its net profit margin, reaching 11.11% in 2025, indicating enhanced profitability. However, a slight decline in gross profit margin from the previous year suggests potential cost pressures. Overall, the income statement reflects solid growth and profitability, with some areas for cost management improvement.

Balance Sheet

The balance sheet of Sharda Motor Industries Ltd. is robust, with a strong equity position and low leverage. The debt-to-equity ratio remains low at 0.05, underscoring financial stability. The equity ratio has improved consistently, reaching 60.43% in 2025, indicating strong capital structure. Return on equity is also impressive at 29.65%, reflecting efficient use of equity to generate profits. Overall, the balance sheet reveals a stable financial foundation with low risk and excellent equity management.

Cash Flow

Sharda Motor Industries Ltd. showcases a positive trend in free cash flow, with a recovery from negative figures in 2020 to a healthy ₹1,983 million in 2025. The operating cash flow to net income ratio is sound at 0.92, suggesting effective cash management. However, the free cash flow growth rate shows a decline from the previous year's high, indicating potential areas for enhancing cash generation. Overall, cash flow is strong but with room for improvement in sustaining growth momentum.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.07B	28.37B	28.09B	27.00B	22.33B	17.29B
Gross Profit	6.95B	5.35B	6.58B	5.36B	4.20B	3.03B
EBITDA	5.10B	4.80B	4.49B	3.23B	2.57B	1.51B
Net Income	3.38B	3.15B	3.00B	2.08B	1.49B	666.49M
Balance Sheet
Total Assets	0.00	17.57B	16.28B	13.89B	10.66B	9.73B
Cash, Cash Equivalents and Short-Term Investments	9.06B	9.06B	5.94B	5.73B	4.54B	2.80B
Total Debt	0.00	516.30M	236.65M	246.42M	124.56M	119.02M
Total Liabilities	-10.62B	6.95B	6.22B	6.31B	4.93B	5.42B
Stockholders Equity	10.62B	10.62B	10.06B	7.58B	5.73B	4.31B
Cash Flow
Free Cash Flow	0.00	1.98B	2.96B	-3.03B	1.56B	1.07B
Operating Cash Flow	0.00	2.91B	3.70B	-2.00B	1.92B	1.48B
Investing Cash Flow	0.00	-907.35M	-2.15B	1.90B	-620.86M	-1.52B
Financing Cash Flow	0.00	-2.60B	-542.34M	-265.74M	-92.94M	-14.63M

Sharda Motor Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 962.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHARDAMOTR, the sentiment is Negative. The current price of 962 is above the 20-day moving average (MA) of 872.53, above the 50-day MA of 917.37, and below the 200-day MA of 979.84, indicating a bearish trend. The MACD of -28.48 indicates Negative momentum. The RSI at 38.57 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHARDAMOTR.

Sharda Motor Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUMAXTECH	73 Outperform	₹91.92B	43.47	―	0.35%	36.70%	36.24%
VARROC	69 Neutral	₹87.98B	63.22	―	0.16%	7.38%	-73.62%
SHARDAMOTR	66 Neutral	₹48.78B	14.60	―	2.75%	6.96%	6.33%
LUMAXIND	66 Neutral	₹45.50B	30.48	―	0.62%	26.75%	20.28%
TALBROAUTO	65 Neutral	₹15.56B	16.26	―	0.32%	0.74%	-17.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SUPRAJIT	54 Neutral	₹61.63B	38.59	―	0.63%	14.20%	16.80%

Sharda Motor Industries Ltd. Corporate Events

Sharda Motor Industries Schedules Q2 Financial Performance Call

Sharda Motor Industries Limited has announced a conference call to discuss its operational and financial performance for the quarter ended September 30, 2025. The call is scheduled for November 12, 2025, at 4:00 pm IST, and will feature key members of the management team. This meeting is part of the company’s ongoing efforts to maintain transparency with stakeholders and provide insights into its financial health and strategic direction.

Sharda Motor Receives Order on E-way Bill Discrepancy

Sharda Motor Industries Ltd. has announced the receipt of an order-in-appeal from the Additional Commissioner Grade 2 (Appeal) Second (State Tax) in Meerut, Uttar Pradesh, regarding an alleged discrepancy in an E-way Bill. The order pertains to the non-generation of Part B of the E-way bill, but the company has stated that this will not have a material impact on its financial operations.