Risk factor
Very poor trading liquidity
Profitability factor
Greatly overvalued vs peers
About
SAR Auto Products Ltd. specializes in the fabrication of automotive components. The company operates through two core divisions: Manufacturing and Construction. Its Manufacturing arm focuses on producing gears, gearboxes, and a range of other transmission system components. Meanwhile, the Construction division is dedicated to real estate development. The firm's extensive product line encompasses automobile gears such as spur, helical, straight bevel, and sprockets, along with transmission spline shafts, couplings, and power takeoff clutches. These essential parts are utilized across transmission, engine, and differential gear assemblies. Rameshkumar Durlabhjibhai Virani founded the company on October 27, 1987, and its main office is situated in Rajkot, India.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBI