Sharda Motor Industries Ltd. (SHARDAMOTR) AI Stock Analysis

• Market Cap: ₹60.37B
• Dividend Yield: 2.44%
• Average Volume (3M): 5.88K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.36
• Revenue Growth: 2.35%
• EPS Growth: 8.08%
• Country: IN
• Employees: 917
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Auto - Parts
• EPS (TTM): 17.41
• Shares Outstanding: 57,407,707
• 10 Day Avg. Volume: 3,206
• 30 Day Avg. Volume: 5,880
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,165.00
• Price Target Upside: 10.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ₹1,165.00 ▲(10.03% Upside)

Sharda Motor Industries Ltd. scores well due to its strong financial performance, characterized by robust growth and a solid balance sheet. The valuation is fair, offering a reasonable P/E ratio and a good dividend yield. However, technical analysis indicates mixed signals with some bearish momentum, suggesting caution. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Sharda Motor Industries Ltd. Business Overview & Revenue Model

Company Description

Sharda Motor Industries Ltd. (SHARDAMOTR) is a prominent Indian company engaged in the manufacturing and supply of automotive components. The company operates in the automotive sector and is primarily known for its production of exhaust systems, catalytic converters, independent suspension systems, and seat covers for major original equipment manufacturers (OEMs) in the automotive industry. Sharda Motor Industries Ltd. has established itself as a key player in the automotive components market, providing high-quality products that meet stringent industry standards.

How the Company Makes Money

Sharda Motor Industries Ltd. generates revenue through the production and sale of automotive components to various automotive manufacturers. Its primary revenue streams include the sale of exhaust systems and catalytic converters, which are essential for vehicles to meet emission standards. The company also earns income from independent suspension systems and seat covers. Key partnerships with major automotive OEMs ensure a steady demand for its products, contributing significantly to its earnings. Additionally, the company's focus on innovation and compliance with international quality standards helps maintain competitive advantage and customer loyalty, thereby sustaining its revenue generation.

Sharda Motor Industries Ltd. Financial Statement Overview

Summary

Sharda Motor Industries Ltd. is in a strong financial position, reflecting solid growth, profitability, and financial stability. The income statement shows impressive revenue growth and profitability, while the balance sheet highlights low leverage and a strong equity base. Cash flow generation is positive, though improvements in sustaining momentum are possible.

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 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.90B	28.37B	28.09B	27.00B	22.33B	17.29B
Gross Profit	6.39B	5.35B	6.58B	5.36B	4.20B	3.03B
EBITDA	4.80B	4.80B	4.49B	3.23B	2.57B	1.51B
Net Income	3.19B	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	5.19B	9.06B	5.99B	5.73B	4.54B	2.80B
Total Debt	0.00	516.30M	236.65M	246.42M	124.56M	119.02M
Total Liabilities	-9.03B	6.95B	6.22B	6.31B	4.93B	5.42B
Stockholders Equity	9.03B	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: Positive
• Last Price: 1058.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1058.8 is above the 20-day moving average (MA) of 1046.74, above the 50-day MA of 1049.81, and above the 200-day MA of 916.29, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 55.51 is Neutral, neither overbought nor oversold. The STOCH value of 44.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
SHARDAMOTR	73 Outperform	₹60.37B	17.86		2.44%	2.35%	8.08%
LUMAXTECH	72 Outperform	₹76.88B	41.00		0.52%	32.63%	34.16%
LUMAXIND	69 Neutral	₹38.94B	27.44		0.84%	27.33%	16.25%
VARROC	69 Neutral	₹85.95B	65.26		0.18%	8.55%	-74.55%
TALBROAUTO	64 Neutral	₹16.36B	17.04		0.26%	3.71%	-15.16%
Sector *	61 Neutral	$17.96B	13.14	-5.29%	3.00%	1.25%	-13.95%
SUPRAJIT	59 Neutral	₹63.25B	57.90		0.66%	15.38%	-36.00%