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Sharda Motor Industries

NSEI:SHARDA
Snowflake Description

Flawless balance sheet with outstanding track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SHARDA
NSEI
₹9B
Market Cap
  1. Home
  2. IN
  3. Automobiles
Company description

Sharda Motor Industries Limited manufactures, assembles, and sells auto components and white goods components in India. The last earnings update was 231 days ago. More info.


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SHARDA Share Price and Events
7 Day Returns
2.3%
NSEI:SHARDA
-2.1%
IN Auto Components
0.5%
IN Market
1 Year Returns
-17.3%
NSEI:SHARDA
-14.1%
IN Auto Components
2.7%
IN Market
SHARDA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sharda Motor Industries (SHARDA) 2.3% 27.8% 1.4% -17.3% 92.4% -
IN Auto Components -2.1% 9% -6.1% -14.1% 34.8% 152.9%
IN Market 0.5% 9.2% 3.4% 2.7% 43.6% 79%
1 Year Return vs Industry and Market
  • SHARDA underperformed the Auto Components industry which returned -14.1% over the past year.
  • SHARDA underperformed the Market in India which returned 2.7% over the past year.
Price Volatility
SHARDA
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Sharda Motor Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sharda Motor Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sharda Motor Industries.

NSEI:SHARDA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 17%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:SHARDA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.142 (1 + (1- 35%) (0%))
1.095
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.095 * 8.6%)
16.97%

Discounted Cash Flow Calculation for NSEI:SHARDA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sharda Motor Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:SHARDA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 16.97%)
2019 604.41 Est @ -29.92% 516.72
2020 491.52 Est @ -18.68% 359.25
2021 438.39 Est @ -10.81% 273.93
2022 415.14 Est @ -5.3% 221.77
2023 409.14 Est @ -1.45% 186.85
2024 414.27 Est @ 1.25% 161.75
2025 427.28 Est @ 3.14% 142.63
2026 446.36 Est @ 4.46% 127.38
2027 470.42 Est @ 5.39% 114.77
2028 498.82 Est @ 6.04% 104.04
Present value of next 10 years cash flows ₹2,209.08
NSEI:SHARDA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹498.82 × (1 + 7.55%) ÷ (16.97% – 7.55%)
₹5,695.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹5,695.23 ÷ (1 + 16.97%)10
₹1,187.88
NSEI:SHARDA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹2,209.08 + ₹1,187.88
₹3,396.96
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹3,396.96 / 5.95
₹571.27
NSEI:SHARDA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:SHARDA represents 0.9998x of BSE:535602
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.9998x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 571.27 x 0.9998
₹571.16
Value per share (INR) From above. ₹571.16
Current discount Discount to share price of ₹1,535.20
= -1 x (₹1,535.20 - ₹571.16) / ₹571.16
-168.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Sharda Motor Industries is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sharda Motor Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sharda Motor Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:SHARDA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹147.95
BSE:535602 Share Price ** BSE (2019-03-22) in INR ₹1535.5
India Auto Components Industry PE Ratio Median Figure of 99 Publicly-Listed Auto Components Companies 16.43x
India Market PE Ratio Median Figure of 2,730 Publicly-Listed Companies 16.4x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sharda Motor Industries.

NSEI:SHARDA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:535602 Share Price ÷ EPS (both in INR)

= 1535.5 ÷ 147.95

10.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sharda Motor Industries is good value based on earnings compared to the IN Auto Components industry average.
  • Sharda Motor Industries is good value based on earnings compared to the India market.
Price based on expected Growth
Does Sharda Motor Industries's expected growth come at a high price?
Raw Data
NSEI:SHARDA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
7.1%per year
India Auto Components Industry PEG Ratio Median Figure of 37 Publicly-Listed Auto Components Companies 1.27x
India Market PEG Ratio Median Figure of 595 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

NSEI:SHARDA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.38x ÷ 7.1%

1.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sharda Motor Industries is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sharda Motor Industries's assets?
Raw Data
NSEI:SHARDA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹646.66
BSE:535602 Share Price * BSE (2019-03-22) in INR ₹1535.5
India Auto Components Industry PB Ratio Median Figure of 110 Publicly-Listed Auto Components Companies 2.05x
India Market PB Ratio Median Figure of 3,617 Publicly-Listed Companies 1.12x
NSEI:SHARDA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:535602 Share Price ÷ Book Value per Share (both in INR)

= 1535.5 ÷ 646.66

2.37x

* Primary Listing of Sharda Motor Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sharda Motor Industries is overvalued based on assets compared to the IN Auto Components industry average.
X
Value checks
We assess Sharda Motor Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Sharda Motor Industries has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Sharda Motor Industries expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sharda Motor Industries expected to grow at an attractive rate?
  • Sharda Motor Industries's earnings growth is positive but not above the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Sharda Motor Industries's earnings growth is positive but not above the India market average.
  • Sharda Motor Industries's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:SHARDA Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:SHARDA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 7.1%
NSEI:SHARDA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 8.1%
India Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 17%
India Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 11.1%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:SHARDA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (11 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:SHARDA Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-03-31 13,592 1,011 1
2019-03-31 12,589 885 1
NSEI:SHARDA Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 11,554 1,158 880
2017-03-31 10,419 1,643 609
2016-03-31 9,273 919 353
2015-12-31 9,223 364
2015-09-30 8,980 329
2015-06-30 8,806 341

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sharda Motor Industries's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
  • Sharda Motor Industries's revenue is expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:SHARDA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (11 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Sharda Motor Industries Company Filings, last reported 11 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:SHARDA Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-03-31 170.00 170.00 170.00 1.00
2019-03-31 148.86 148.86 148.86 1.00
NSEI:SHARDA Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 147.95
2017-03-31 102.41
2016-03-31 59.38
2015-12-31 61.24
2015-09-30 55.37
2015-06-30 57.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sharda Motor Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Sharda Motor Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sharda Motor Industries has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Sharda Motor Industries performed over the past 5 years?

  • Sharda Motor Industries's last earnings update was 231 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sharda Motor Industries's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sharda Motor Industries has delivered over 20% year on year earnings growth in the past 5 years.
  • Sharda Motor Industries's 1-year earnings growth exceeds its 5-year average (44.5% vs 34.2%)
  • Sharda Motor Industries's earnings growth has exceeded the IN Auto Components industry average in the past year (44.5% vs 26.1%).
Earnings and Revenue History
Sharda Motor Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sharda Motor Industries Company Filings, last reported 11 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:SHARDA Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 11,554.46 879.71 850.76
2017-03-31 10,418.85 608.96 755.81
2016-03-31 9,273.24 353.08 732.74
2015-12-31 9,222.57 364.14 847.95 65.60
2015-09-30 8,979.86 329.21 814.83 65.60
2015-06-30 8,806.23 341.24 821.19 65.60
2015-03-31 8,745.42 361.27 815.24 65.60
2014-12-31 8,606.66 236.08 767.68 67.92
2014-09-30 8,450.11 202.09 753.15 67.92
2014-06-30 8,196.98 136.14 723.38 67.92
2014-03-31 8,173.16 150.15 703.99 67.92
2013-12-31 8,358.37 225.54 725.39 42.59
2013-09-30 8,684.24 254.59 729.59 42.59
2013-06-30 9,047.55 292.19 712.45 42.59
2013-03-31 8,990.14 259.50 694.93 42.59
2012-03-31 7,514.22 276.11 588.72 35.12

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sharda Motor Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Sharda Motor Industries used its assets more efficiently than the IN Auto Components industry average last year based on Return on Assets.
  • Sharda Motor Industries has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sharda Motor Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sharda Motor Industries has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Sharda Motor Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sharda Motor Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sharda Motor Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sharda Motor Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sharda Motor Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Sharda Motor Industries has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sharda Motor Industries Company Filings, last reported 11 months ago.

NSEI:SHARDA Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 3,845.24 0.00 1,773.60
2017-03-31 3,055.01 589.72 1,384.85
2016-03-31 2,467.77 1,211.34 661.42
2015-12-31 2,204.03 1,252.34 524.09
2015-09-30 2,204.03 1,252.34 524.09
2015-06-30 2,053.89 1,442.85 152.14
2015-03-31 2,053.89 1,442.85 152.14
2014-12-31 1,960.12 2,060.05 438.82
2014-09-30 1,960.12 2,060.05 438.82
2014-06-30 1,777.87 2,252.23 240.00
2014-03-31 1,777.87 2,252.23 363.99
2013-12-31 1,827.56 1,827.13 36.44
2013-09-30 1,827.56 1,827.13 36.44
2013-06-30 1,697.29 1,596.78 63.26
2013-03-31 1,697.29 1,596.78 63.26
2012-03-31 1,462.08 1,255.57 235.58
  • Sharda Motor Industries has no debt.
  • Sharda Motor Industries has no debt compared to 5 years ago when it was 94.1%.
  • Sharda Motor Industries has no debt, it does not need to be covered by operating cash flow.
  • Sharda Motor Industries has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Sharda Motor Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sharda Motor Industries has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Sharda Motor Industries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.81%
Current annual income from Sharda Motor Industries dividends.
If you bought ₹2,000 of Sharda Motor Industries shares you are expected to receive ₹16 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sharda Motor Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Sharda Motor Industries's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:SHARDA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
India Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 76 Stocks 0.8%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:SHARDA Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2020-03-31
2019-03-31
NSEI:SHARDA Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-08-03 12.500 0.804
2018-05-28 12.500 0.627
2018-02-12 12.500 0.630
2017-08-03 12.500 0.493
2016-05-27 12.500 0.962
2016-02-05 12.500 1.509
2015-08-03 10.000 1.079
2015-05-26 10.000 1.057
2014-05-22 10.000 1.639
2014-01-29 10.000 3.505
2013-05-28 10.000 3.072
2013-05-22 10.000 2.132

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Sharda Motor Industries has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Sharda Motor Industries only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Sharda Motor Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (11.8x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Sharda Motor Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sharda Motor Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sharda Motor Industries has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Sharda Motor Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ajay Relan
COMPENSATION ₹50,605,000
AGE 57
CEO Bio

Mr. Ajay Relan, B.Com. (Hons.) serves as Chief Executive Officer and Managing Director of Sharda Motor Industries Limited and has been its Executive Director since January 29, 1986. Mr. Relan has been a Non-Independent Non-Executive Director of Bharat Seats Ltd. since April 5, 1988. He has 30 years of experience. He holds B.Com (Hons), and OPM Program from Harvard Business School.

CEO Compensation
  • Ajay's compensation has increased by more than 20% in the past year.
  • Ajay's remuneration is higher than average for companies of similar size in India.
Management Team

Ajay Relan

TITLE
MD, CEO & Executive Director
COMPENSATION
₹51M
AGE
57

Vivek Bhatia

TITLE
President & CFO
COMPENSATION
₹11M
AGE
50

Aashim Relan

TITLE
Chief Operating Officer
AGE
27
TENURE
6.8 yrs

Nitin Vishnoi

TITLE
Company Secretary & Compliance Officer
COMPENSATION
₹2M

Sitangshu Goswami

TITLE
President of Sales & Strategy
AGE
52

Abinash Upadhyay

TITLE
Chief People Officer
AGE
50

Bireswar Mitra

TITLE
Non-Independent Executive Director
COMPENSATION
₹3M
AGE
72

K. Sharma

TITLE
President of Chennai Plant - I
AGE
47

Atul Sheth

TITLE
Chief Operating Officer of Western Region
AGE
56

Sung Lee

TITLE
Chief Executive Officer of MWC Plant
AGE
54
Board of Directors Tenure

Average tenure and age of the Sharda Motor Industries board of directors in years:

4.6
Average Tenure
72
Average Age
  • The tenure for the Sharda Motor Industries board of directors is about average.
Board of Directors

Sharda Relan

TITLE
Co-Chairperson
COMPENSATION
₹46M
AGE
83
TENURE
2.6 yrs

Kishan Parikh

TITLE
Co-Chairman
COMPENSATION
₹360K
AGE
51
TENURE
3.1 yrs

Ajay Relan

TITLE
MD, CEO & Executive Director
COMPENSATION
₹51M
AGE
57
TENURE
32.5 yrs

Bireswar Mitra

TITLE
Non-Independent Executive Director
COMPENSATION
₹3M
AGE
72
TENURE
4.6 yrs

R. Chowdhry

TITLE
Non-Independent Non-Executive Director
COMPENSATION
₹260K
AGE
93
TENURE
33.2 yrs

Satinder Lambah

TITLE
Non-Executive Independent Director
COMPENSATION
₹440K
AGE
77
TENURE
3.1 yrs

Rohit Relan

TITLE
Non-Executive Non-Independent Director
COMPENSATION
₹80K
AGE
63
TENURE
27.8 yrs

Udayan Banerjee

TITLE
Non-Executive Independent Director
AGE
71
TENURE
0.1 yrs

Ashok Bhattacharya

TITLE
Non-Executive Independent Director
COMPENSATION
₹160K
AGE
72
TENURE
9.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
13. Oct 18 Buy Ajay Relan Individual 11. Oct 18 11. Oct 18 670 ₹1,521.64 ₹1,017,912
10. Oct 18 Buy Ajay Relan Individual 08. Oct 18 10. Oct 18 1,402 ₹1,566.87 ₹2,178,912
04. Oct 18 Buy Ajay Relan Individual 01. Oct 18 03. Oct 18 4,850 ₹1,643.28 ₹7,440,082
28. Jul 18 Buy Ajay Relan Individual 24. Jul 18 24. Jul 18 100 ₹2,040.09 ₹204,009
24. Jul 18 Buy Ajay Relan Individual 19. Jul 18 20. Jul 18 1,888 ₹1,861.42 ₹3,514,356
20. Jul 18 Buy Ajay Relan Individual 16. Jul 18 18. Jul 18 2,456 ₹1,879.66 ₹4,616,456
17. Jul 18 Buy Ajay Relan Individual 13. Jul 18 13. Jul 18 307 ₹1,879.67 ₹577,057
12. Jul 18 Buy Ajay Relan Individual 09. Jul 18 11. Jul 18 328 ₹1,879.69 ₹616,538
09. Jul 18 Buy Ajay Relan Individual 04. Jul 18 06. Jul 18 817 ₹1,856.64 ₹1,516,877
06. Jul 18 Buy Ajay Relan Individual 02. Jul 18 04. Jul 18 206 ₹1,877.83 ₹386,833
24. Mar 18 Buy Aashim Relan Individual 22. Mar 18 23. Mar 18 2,450 ₹1,782.91 ₹4,368,122
24. Mar 18 Buy Ajay Relan Individual 23. Mar 18 23. Mar 18 2,010 ₹1,795.10 ₹3,608,158
X
Management checks
We assess Sharda Motor Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sharda Motor Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

If You Had Bought Sharda Motor Industries (NSE:SHARDA) Shares Three Years Ago You'd Have Made 92%

For example, the Sharda Motor Industries Limited (NSE:SHARDA) share price is up 92% in the last three years, clearly besting than the market return of around 43% (not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Sharda Motor Industries was able to grow its EPS at 35% per year over three years, sending the share price higher.

Simply Wall St -

Read This Before Buying Sharda Motor Industries Limited (NSE:SHARDA) For Its Dividend

Historically, Sharda Motor Industries Limited (NSE:SHARDA) has paid a dividend to shareholders. … Does Sharda Motor Industries tick all the boxes of a great dividend stock? … Check out our latest analysis for Sharda Motor Industries

Simply Wall St -

What Percentage Of Sharda Motor Industries Limited (NSE:SHARDA) Shares Do Insiders Own?

If you want to know who really controls Sharda Motor Industries Limited (NSE:SHARDA), then you'll have to look at the makeup of its share registry. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … With a market capitalization of ₹7.5b, Sharda Motor Industries is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

Did Sharda Motor Industries Limited (NSE:SHARDA) Insiders Buy Up More Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So we'll take a look at whether insiders have been buying or selling shares in Sharda Motor Industries Limited (NSE:SHARDA). … The Last 12 Months Of Insider Transactions At Sharda Motor Industries.

Simply Wall St -

Can Sharda Motor Industries Limited's (NSE:SHARDA) ROE Continue To Surpass The Industry Average?

Over the last twelve months Sharda Motor Industries has recorded a ROE of 23%. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.23 in profit. … Check out our latest analysis for Sharda Motor Industries?

Simply Wall St -

What Do You Get For Owning Sharda Motor Industries Limited (NSE:SHARDA)?

and looking to gauge the potential return on investment in Sharda Motor Industries Limited (NSE:SHARDA). … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently Sharda Motor Industries is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

What Investors Should Know About Sharda Motor Industries Limited's (NSE:SHARDA) Financial Strength

The direct benefit for Sharda Motor Industries Limited (NSE:SHARDA), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is SHARDA will have to adhere to stricter debt covenants and have less financial flexibility. … Is SHARDA right in choosing financial flexibility over lower cost of capital.

Simply Wall St -

What Kind Of Investor Owns Most Of Sharda Motor Industries Limited (NSE:SHARDA)?

Every investor in Sharda Motor Industries Limited (NSE:SHARDA) should be aware of the most powerful shareholder groups. … Sharda Motor Industries is not a large company by global standards. … View our latest analysis for Sharda Motor Industries

Simply Wall St -

Why We Think Sharda Motor Industries Limited (NSE:SHARDA) Could Be Worth Looking At

Sharda Motor Industries Limited (NSE:SHARDA) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of SHARDA, it

Simply Wall St -

What Should You Know About Sharda Motor Industries Limited's (NSE:SHARDA) Return On Capital?

and want to begin learning the link between Sharda Motor Industries Limited (NSE:SHARDA)’s return fundamentals and stock market performance. … Thus, to understand how your money can grow by investing in Sharda Motor Industries, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Sharda Motor Industries's Return On Capital Employed

Simply Wall St -

Company Info

Description

Sharda Motor Industries Limited manufactures, assembles, and sells auto components and white goods components in India. It offers silencers, exhaust pipes, suspension systems, seat trims and seat frames, catalytic converters, seat covers, soft top canopies, pressed part-white goods products, sheet metal components, and plastic parts, as well as provides exhaust systems for passenger and commercial vehicles, and tractors. It also exports its products. The company serves automotive and white goods industries. Sharda Motor Industries Limited was founded in 1986 and is based in New Delhi, India.

Details
Name: Sharda Motor Industries Limited
SHARDA
Exchange: NSEI
Founded: 1986
₹9,172,802,487
5,946,326
Website: http://www.shardamotor.com
Address: Sharda Motor Industries Limited
D-188, Okhla Industrial Area,
Phase - I,
New Delhi,
Delhi, 110020,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 535602 Equity Shares Mumbai Stock Exchange IN INR 22. May 2013
NSEI SHARDA Equity Shares National Stock Exchange of India IN INR 22. May 2013
Number of employees
Current staff
Staff numbers
1,189
Sharda Motor Industries employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/22 12:59
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/01/05
Last earnings filing: 2018/08/03
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.