Sarda Energy and Minerals Ltd.
ISIN: INE385C01021 • Market Cap: ₹18,058 Cr
The 5-Pillar Quality Audit for Sarda Energy and Minerals Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (32.2%), Return on Capital Employed (12.5%), and equity compounding (11.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.45 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (10.4%) and 3Y PAT CAGR (22.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 15.98 vs PEG of 1.57 and Dividend Yield of 0.4%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 73.2%, backed by 7.0% institutional ownership.
Key Fundamental Strengths
High-Velocity Profit Compounding (3Y PAT CAGR: 22.4%)
Net earnings have compounded at 22.4% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 15.98)
Trading at a P/E multiple of 15.98, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Metals & Mining)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Metals & Mining space.
Quantitative Strategy Eligibility
Checking SARDAEN against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 74/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Metals & Mining Sector Peer Comparison
Compare SARDAEN directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Sarda Energy and Minerals Ltd. (SARDAEN)Current | 74/100 | ₹18,058 Cr | 15.98 | 12.5% | 0.45 | — |
| Adani Enterprises Ltd. (ADANIENT) | 58/100 | ₹4.03 Lakh Cr | 54.17 | 5.1% | 1.07 | View |
| JSW Steel Ltd. (JSWSTEEL) | 73/100 | ₹3.13 Lakh Cr | 12.64 | 10.7% | 0.96 | View |
| Hindustan Zinc Ltd. (HINDZINC) | 88/100 | ₹2.34 Lakh Cr | 13.72 | 62.3% | 0.37 | View |
| Hindalco Industries Ltd. (HINDALCO) | 71/100 | ₹2.33 Lakh Cr | 14.19 | 12.7% | 0.71 | View |
| Tata Steel Ltd. (TATASTEEL) | 62/100 | ₹2.30 Lakh Cr | 20.82 | 11.9% | 0.84 | View |
Frequently Asked Questions: Sarda Energy and Minerals Ltd.
Q:What is the 5-Pillar Fundamental Score for Sarda Energy and Minerals Ltd. (SARDAEN)?
Sarda Energy and Minerals Ltd. has a RupeeTools Fundamental Score of 74/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (67/100), Financial Health (82/100), Growth (79/100), Valuation (70/100), and Ownership Quality (72/100).
Q:Is SARDAEN fundamentally strong for long-term investment?
Yes, SARDAEN exhibits solid fundamental strength with a 74/100 score, driven by a return on equity of 11.1% and a debt-to-equity ratio of 0.45.
Q:Does SARDAEN pass the Coffee Can Investing filter?
No. SARDAEN does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does SARDAEN compare against other Metals & Mining peers?
Within India's Metals & Mining sector, SARDAEN trades at a P/E of 15.98 and generates an ROCE of 12.5%. Compare its 5-Pillar score of 74/100 against top sector peers like Adani Enterprises Ltd. (58/100), JSW Steel Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.