Sharda Cropchem Ltd.
ISIN: INE221J01015 • Market Cap: ₹6,963 Cr
The 5-Pillar Quality Audit for Sharda Cropchem Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (19.5%), Return on Capital Employed (26.0%), and equity compounding (21.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (19.2%) and 3Y PAT CAGR (169.8%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 11.12 vs PEG of 1.03 and Dividend Yield of 1.9%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 74.8%, backed by 12.3% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 26.0%)
Sharda Cropchem Ltd. generates exceptional return on capital employed of 26.0%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 21.7%)
Shareholder equity compounds at a healthy 21.7%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 19.2%)
Revenue has expanded at 19.2% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 169.8%)
Net earnings have compounded at 169.8% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 11.12)
Trading at a P/E multiple of 11.12, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Chemicals)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Chemicals space.
Quantitative Strategy Eligibility
Checking SHARDACROP against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 86/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Chemicals Sector Peer Comparison
Compare SHARDACROP directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Sharda Cropchem Ltd. (SHARDACROP)Current | 86/100 | ₹6,963 Cr | 11.12 | 26.0% | 0.00 | — |
| Solar Industries India Ltd. (SOLARINDS) | 80/100 | ₹1.79 Lakh Cr | 89.97 | 30.2% | 0.23 | View |
| Pidilite Industries Ltd. (PIDILITIND) | 75/100 | ₹1.68 Lakh Cr | 63.40 | 28.7% | 0.01 | View |
| SRF Ltd. (SRF) | 73/100 | ₹76,329 Cr | 35.31 | 15.2% | 0.36 | View |
| Coromandel International Ltd. (COROMANDEL) | 72/100 | ₹60,148 Cr | 32.83 | 21.6% | 0.07 | View |
| Linde India Ltd. (LINDEINDIA) | 61/100 | ₹57,146 Cr | 104.59 | 12.2% | 0.00 | View |
Frequently Asked Questions: Sharda Cropchem Ltd.
Q:What is the 5-Pillar Fundamental Score for Sharda Cropchem Ltd. (SHARDACROP)?
Sharda Cropchem Ltd. has a RupeeTools Fundamental Score of 86/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (87/100), Financial Health (87/100), Growth (92/100), Valuation (85/100), and Ownership Quality (72/100).
Q:Is SHARDACROP fundamentally strong for long-term investment?
Yes, SHARDACROP exhibits solid fundamental strength with a 86/100 score, driven by a return on equity of 21.7% and a debt-to-equity ratio of 0.00.
Q:Does SHARDACROP pass the Coffee Can Investing filter?
Yes! SHARDACROP satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does SHARDACROP compare against other Chemicals peers?
Within India's Chemicals sector, SHARDACROP trades at a P/E of 11.12 and generates an ROCE of 26.0%. Compare its 5-Pillar score of 86/100 against top sector peers like Solar Industries India Ltd. (80/100), Pidilite Industries Ltd. (75/100).
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.