🧲 At a Glance

Shera Energy Ltd (NSE: SHERA) has wrapped up FY25 with a sizzling ₹1,279 Cr revenue (up 46% YoY) and ₹22.4 Cr net profit, proving that winding wires can be a winding road to wealth — especially when you’re spinning copper, aluminium, and strategy from Jaipur to Zambia.

FY25 wasn’t just about numbers — Shera:

• Raised ₹30.38 Cr through preferential allotment 🧾
• Upped its stake in Shera Metal Pvt Ltd
• Expanded into Zambia 🇿🇲 (yes, seriously)
• Announced major infrastructure push at Rajputana Industries & Shera Metal

CMP: ₹154.20
FY25 EPS: ₹7.80
EBITDA Margin: 4.73%
PAT Growth: 59.4% YoY

🏭 About the Company

• Headquarters: Jaipur, Rajasthan
• Founded: 2009
• Listed on NSE Emerge: February 2023
• Core Business: Manufacturing of winding wires & strips using copper, aluminium, and brass
• Certifications: ISO 9001, 14001, 45001
• Clients: Power Grid Corporation, electrical OEMs, transformer manufacturers

Shera’s products include:

• Paper-covered wires
• Enamelled and fiber-covered wires
• Rods, strips, tubes
• Bunched wires
• Custom non-ferrous engineering components

💼 Key Managerial Personnel (KMP)

📊 FY25 Financials Breakdown

⚠️ Margin Alert

EBITDA margin dipped from 6.0% to 4.73% — likely due to capex, material inflation, and project ramp-ups.

🚀 Strategic Updates & Expansion Plans

🧱 Capital Infusion

• Raised ₹30.38 Cr via preferential allotment @ ₹184/share.
• Increased equity base from ₹22.79 Cr to ₹24.44 Cr.

🧑‍🤝‍🧑 Subsidiary Investments

• Increased stake in Shera Metal Pvt Ltd from 82.13% → 85.56%
• Acquired 35 lakh shares for ₹10.15 Cr.

🏭 Manufacturing Push

• Rajputana Industries machinery installation expected in Q1 FY26
• Shera Metal building + machines expected by Q1 FY26
• Commercial production at both in Q2 FY26

🌍 Zambia Operations

• Already underway
• Expected to improve overall margins significantly in 3 years
• No more “Make in India” only — now it’s “Make in India + Margin in Zambia”

🧮 Forward-Looking Fair Value (FV) Estimate

Assuming Shera maintains 15% PAT CAGR over 3 years, with a conservative P/E of 22x, FV estimate is:

• FY25 EPS: ₹7.80
• Expected FY28 EPS: ~₹11.85
• FV (22x): ~₹261.

Current CMP = ₹154.20 → 66% upside potential if all expansions kick in smoothly.

🔮 Industry Outlook

• Winding wires: Mission-critical for EVs, power infra, electronics, renewables
• India’s transformer demand is growing 12–15% YoY post-RDSS schemes.
• Electrification of rural India + EV boom = wires, wires, and more wires.
• Global demand shifting toward aluminium due to cost and weight — Shera is already in the game.

🧠 EduInvesting Take

Shera Energy is playing the long game. Not just winding wires anymore — they’re winding a strategy that touches equity markets, African margins, transformer infrastructure, and premium product engineering.

But here’s the kicker:
⚠️ EBITDA margin fell despite higher revenue
✅ But PAT grew 60% — thanks to scale and smart financing
⚙️ If the Zambia bet and the twin plants (Rajputana + Shera Metal) go live on time, FY26–27 could see a margin lift + scale boom combo.

This is a rare case of a non-boring wire company with non-boring global ambitions.

🕵️ Risks & Red Flags

• Margin volatility remains a concern (raw material pricing is brutal)
• Execution risk for Zambia and plant capex — delays = pain
• Small-cap liquidity issues post-listing on NSE Emerge
• Rising interest rates could impact further capex financing

🧷 Tags

Shera Energy FY25 Results, Shera Energy Zambia, Shera Metal FY26, Rajputana Industries, winding wire stocks India, NSE Emerge Shera, FY25 profit growth, Shera Capex, Shera Expansion Africa, Copper aluminium wire manufacturers India

Author: Prashant Marathe
Date: 29 May 2025

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