“Sharda Motor: The Auto Ancillary That Prints Profits (And Now Bonuses Too)”
Date of Publishing -
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1. At a Glance
Sharda Motor Industries isn’t your average auto ancillary stock. With juicy margins, near-zero debt, a surprise bonus issue, and a dividend yield higher than your savings account, this one’s got auto enthusiasts and investors revving. Oh, and did we mention 43% 5Y profit CAGR? No cap.
2. WTF Do They Even Do?
Sharda Motor is into:
Emission Control Systems (read: BS-VI magic pipes)
Suspension Systems
Soft-top Canopies (Jeep fans, holla!)
Roof Systems and Axle Assemblies
Basically, they manufacture what carmakers don’t want to — the hard, messy, low-glamour stuff. Which ironically makes them sticky with OEMs.
🛠️ Major Customers:
Tata Motors
M&M
Maruti Suzuki
Renault Nissan
3. Financials Overview – The Gearbox of Growth
Metric
FY21
FY22
FY23
FY24
FY25
Revenue (₹ Cr)
1,737
2,255
2,700
2,809
2,837
Net Profit (₹ Cr)
79
161
205
295
312
OPM (%)
7%
10%
10%
13%
14%
ROCE (%)
24%
39%
38%
39%
39%
ROE (%)
13.2%
27.1%
26.4%
29.7%
29.7%
🧠 TL;DR: Everything’s accelerating — profits, margins, returns. And still trading at sub-20 P/E? Rare breed.
