Risk factor
Limited trading liquidity
Profitability factor
Very strong margins and returns
About
Established in 1986 and headquartered in New Delhi, India, Sharda Motor Industries Limited is a key supplier of components to original equipment manufacturers (OEMs) in both the automotive and electronics industries across India, with an additional export presence. The company's extensive product line for the automotive sector encompasses exhaust systems tailored for passenger cars, commercial vehicles, and tractors, as well as a variety of suspension systems, including control arm components and complete assemblies. Furthermore, Sharda Motor manufactures diverse seating products like seat assemblies, trim, canopies, and covers for two- and four-wheelers. Its offerings also extend to catalytic converters and various pressed parts utilized in white goods.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is 'cheap' on P/E, neutral on EV/EBITDA, overpri