Sardar Chemical Industries Limited

KASE:SARC Stock Report

Market Cap: PK₨193.6m

Sardar Chemical Industries Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: SARC (PKR32.27) is trading above our estimate of fair value (PKR11.38)

Significantly Below Fair Value: SARC is trading above our estimate of fair value.


Key Valuation Metric

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

Key metric: As SARC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SARC. This is calculated by dividing SARC's market cap by their current earnings.
What is SARC's PE Ratio?
PE Ratio8.3x
EarningsPK₨23.20m
Market CapPK₨193.62m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SARC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average45.1x
BUXL Buxly Paints
44.2xn/aPK₨271.0m
BERG Berger Paints Pakistan
10.2xn/aPK₨2.9b
AKGL Al-Khair Gadoon
17.6xn/aPK₨380.0m
DBCI Dadabhoy Cement Industries
108.3xn/aPK₨536.4m
SARC Sardar Chemical Industries
8.3xn/aPK₨193.6m

Price-To-Earnings vs Peers: SARC is good value based on its Price-To-Earnings Ratio (8.3x) compared to the peer average (45.1x).


Price to Earnings Ratio vs Industry

How does SARC's PE Ratio compare vs other companies in the PK Chemicals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
SARC 8.3xIndustry Avg. 9.6xNo. of Companies5PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SARC is good value based on its Price-To-Earnings Ratio (8.3x) compared to the PK Chemicals industry average (9.6x).


Price to Earnings Ratio vs Fair Ratio

What is SARC'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.

SARC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.3x
Fair PE Ration/a

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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