Sharda Motor Industries Ltd
Ticker: SHARDAMOTR
Decent
68/100
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Investing Reference
Price
1061.40
Market Cap
6093.25
Debt/Equity
0.0486
ROE %
30.459
PB
5.7384
Promoter %
64.305
Pledge %
0.000
1Y Rev Growth %
0.707
5Y Rev Growth %
26.937
NP Margin %
10.776
NP Margin 5Y Avg %
7.803
Trading Reference
1M Return %
-2.934
6M Return %
37.844
1Y Return %
-2.472
% Away 52W High
17.581
% Away 52W Low
69.824
Daily Volume
66988
Investment Verdict
Hold
Score 63/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 43/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Sharda Motor Industries Ltd is currently trading near a strong support level, with the 50-day EMA indicating bullish momentum. If the stock breaks above the resistance level, there is a potential for significant upside. However, if it falls below the support, downside risks increase.
Upside Probability: 20% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Sharda Motor Industries Ltd is a prominent player in the Indian automotive components sector, specializing in manufacturing high-quality components for two-wheelers and three-wheelers. With a commitment to innovation and customer satisfaction, the company caters to a diverse clientele, including leading OEMs in the automotive industry. Sharda Motor is recognized for its robust production capabilities and adherence to international quality standards, making it a trusted partner for manufacturers. Its strategic focus on sustainability and technological advancement positions it well for future growth in a rapidly evolving market.
- Established leader in automotive components
- Serves major OEMs in India
- Focus on quality and innovation
- Strong production capabilities
- Commitment to sustainability and growth
Investment Thesis
Sharda Motor Industries Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. The company's strategic initiatives position it well for future growth, making it a stock worth considering for retail investors.
- Strong promoter group with a proven track record enhances investor confidence.
- Digital services segment offers substantial growth runway in a tech-driven market.
- Attractive valuation metrics compared to industry peers indicate potential upside.
- Robust financial performance and consistent dividend payouts attract long-term investors.
- Focus on innovation and sustainability aligns with market trends and consumer preferences.
Opportunity vs Risk
Opportunities
- Strong growth in automotive sector
- Expansion into electric vehicle market
- Rising demand for two-wheelers
- Strategic partnerships with major OEMs
Risks ⚠️
- Volatility in raw material prices
- Regulatory changes impacting manufacturing
- Intense competition in the industry
- Economic slowdown affecting consumer demand
Peer Perspective
Sharda Motor Industries Ltd trades at a discount to peers like Minda Industries and Bosch, primarily due to margin volatility. A consistent improvement in operational efficiency could trigger a rerating and align its valuation with competitors.
Future Outlook
Sharda Motor Industries Ltd is well-positioned for growth, driven by increasing demand in the automotive sector. Successful execution of its expansion plans and effective cost control will be crucial for maximizing shareholder value.
AI FAQs for Retail Users
- Q: What does Sharda Motor Industries Ltd do?A: Sharda Motor Industries Ltd manufactures automotive components, primarily focusing on two-wheeler and three-wheeler markets.
- Q: Is Sharda Motor Industries Ltd a good investment?A: Investment suitability depends on individual financial goals and market conditions; consider researching thoroughly.
- Q: What are the key products of Sharda Motor Industries Ltd?A: The company produces parts like shock absorbers, suspension systems, and other automotive components.
- Q: Where is Sharda Motor Industries Ltd located?A: The company is based in India, with manufacturing facilities in various states.
- Q: How can I buy shares of Sharda Motor Industries Ltd?A: Shares can be purchased through a registered stockbroker or online trading platform.
📊 Stock Investment Checklist (100 Points)
Sharda Motor Industries Ltd • Updated: 2025-09-18 07:31:29
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10BusinessHighThe automotive components sector is evolving with electric vehicle trends, but Sharda's positioning is unclear.
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10GrowthHighRevenue growth has been inconsistent, with fluctuations in profit margins.
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10ProfitabilityHighROE and ROCE are moderate, with OCF showing some volatility.
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8ValuationHighValuation ratios are above industry averages, indicating potential overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity ratios are on the lower side.
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6GovernanceGoodPromoter holding is decent, but there are concerns about pledging.
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5DriversGoodLimited growth drivers identified, with execution risks in new projects.
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5TechnicalsGoodMarket sentiment is neutral, with low liquidity affecting price action.
Final Score & Verdict
Score 68 / 100
• Decent
Sharda Motor Industries Ltd shows potential but faces challenges in growth consistency and valuation metrics. Investors should proceed with caution.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100