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SMLT

Sarthak Metals NSEI:SMLT Stock Report

Last Price

₹84.75

Market Cap

₹1.2b

7D

-10.6%

1Y

n/a

Updated

20 Jun, 2022

Data

Company Financials
SMLT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends3/6

SMLT Stock Overview

Sarthak Metals Limited manufactures and sells cored wires, ferro alloys, aluminum wires, industrial gases, and related products in India.

Sarthak Metals Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Sarthak Metals
Historical stock prices
Current Share Price₹84.75
52 Week High₹144.00
52 Week Low₹81.50
Beta0.69
1 Month Change-14.48%
3 Month Change-12.81%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-17.48%

Recent News & Updates

May 22
We Think That There Are Issues Underlying Sarthak Metals' (NSE:SMLT) Earnings

We Think That There Are Issues Underlying Sarthak Metals' (NSE:SMLT) Earnings

Despite posting some strong earnings, the market for Sarthak Metals Limited's ( NSE:SMLT ) stock hasn't moved much. Our...

Shareholder Returns

SMLTIN Metals and MiningIN Market
7D-10.6%-10.3%-4.2%
1Yn/a-18.3%-3.7%

Return vs Industry: Insufficient data to determine how SMLT performed against the Indian Metals and Mining industry.

Return vs Market: Insufficient data to determine how SMLT performed against the Indian Market.

Price Volatility

Is SMLT's price volatile compared to industry and market?
SMLT volatility
SMLT Average Weekly Movement5.8%
Metals and Mining Industry Average Movement7.4%
Market Average Movement6.8%
10% most volatile stocks in IN Market9.6%
10% least volatile stocks in IN Market4.4%

Stable Share Price: SMLT is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SMLT's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1995216Mayur Bhatthttps://www.sarthakmetals.com

Sarthak Metals Limited manufactures and sells cored wires, ferro alloys, aluminum wires, industrial gases, and related products in India. It offers ferro silicon calcium, calcium iron, calcium aluminium iron, calcium solid, lead, ferro titanium, sulphur, carbon, ferro boron, graphite, ferro silicon magnesium, nitrided manganese, ferro niobium, nitrovan-16, and aluminum flipping cored wires. The company serves steel manufacturing company.

Sarthak Metals Fundamentals Summary

How do Sarthak Metals's earnings and revenue compare to its market cap?
SMLT fundamental statistics
Market Cap₹1.22b
Earnings (TTM)₹274.81m
Revenue (TTM)₹4.57b

4.4x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMLT income statement (TTM)
Revenue₹4.57b
Cost of Revenue₹3.79b
Gross Profit₹779.15m
Other Expenses₹504.34m
Earnings₹274.81m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)20.07
Gross Margin17.04%
Net Profit Margin6.01%
Debt/Equity Ratio28.7%

How did SMLT perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

5%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SMLT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SMLT?

Other financial metrics that can be useful for relative valuation.

SMLT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.3x
Enterprise Value/EBITDA3.6x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does SMLT's PE Ratio compare to its peers?

SMLT PE Ratio vs Peers
The above table shows the PE ratio for SMLT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.9x

Price-To-Earnings vs Peers: SMLT is good value based on its Price-To-Earnings Ratio (4.4x) compared to the peer average (25.9x).


Price to Earnings Ratio vs Industry

How does SMLT's PE Ratio compare vs other companies in the Indian Metals and Mining Industry?

Price-To-Earnings vs Industry: SMLT is good value based on its Price-To-Earnings Ratio (4.4x) compared to the Indian Metals and Mining industry average (11.7x)


Price to Earnings Ratio vs Fair Ratio

What is SMLT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SMLT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SMLT's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of SMLT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SMLT (₹84.75) is trading below our estimate of fair value (₹95.1)

Significantly Below Fair Value: SMLT is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SMLT's PEG Ratio to determine if it is good value.


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Future Growth

How is Sarthak Metals forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-12.3%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sarthak Metals has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine whether Sarthak Metals is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Sarthak Metals competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Sarthak Metals performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


39.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SMLT has high quality earnings.

Growing Profit Margin: SMLT's current net profit margins (6%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: SMLT's earnings have grown significantly by 39.1% per year over the past 5 years.

Accelerating Growth: SMLT's earnings growth over the past year (244.9%) exceeds its 5-year average (39.1% per year).

Earnings vs Industry: SMLT earnings growth over the past year (244.9%) exceeded the Metals and Mining industry 76.9%.


Return on Equity

High ROE: SMLT's Return on Equity (35.3%) is considered high.


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Financial Health

How is Sarthak Metals's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SMLT's short term assets (₹1.0B) exceed its short term liabilities (₹347.0M).

Long Term Liabilities: SMLT's short term assets (₹1.0B) exceed its long term liabilities (₹34.4M).


Debt to Equity History and Analysis

Debt Level: SMLT's net debt to equity ratio (18.7%) is considered satisfactory.

Reducing Debt: SMLT's debt to equity ratio has reduced from 83.3% to 28.7% over the past 5 years.

Debt Coverage: SMLT's debt is well covered by operating cash flow (73.6%).

Interest Coverage: SMLT's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet


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Dividend

What is Sarthak Metals's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.12%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SMLT's dividend (1.12%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: SMLT's dividend (1.12%) is low compared to the top 25% of dividend payers in the Indian market (1.91%).


Stability and Growth of Payments

Stable Dividend: SMLT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SMLT's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (5%), SMLT's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (9.4%), SMLT's dividend payments are thoroughly covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Mayur Bhatt (43 yo)

0.92

Tenure

₹650,000

Compensation

Mr. Mayur Bhatt has been the Chief Executive Officer of Sarthak Metals Limited since July 14, 2021. He served as an Head of Operations at Sarthak Metals Limited until July 14, 2021 and also has been a Whol...


CEO Compensation Analysis

Compensation vs Market: Mayur's total compensation ($USD8.33K) is below average for companies of similar size in the Indian market ($USD38.44K).

Compensation vs Earnings: Mayur's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SMLT's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: SMLT's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sarthak Metals Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sarthak Metals Limited
  • Ticker: SMLT
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: ₹1.218b
  • Shares outstanding: 13.69m
  • Website: https://www.sarthakmetals.com

Number of Employees


Location

  • Sarthak Metals Limited
  • B.B.C Colony
  • G.E. Road
  • Bhilai
  • Chhattisgarh
  • 490011
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/20 00:00
End of Day Share Price2022/06/20 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.