At a Glance
Sarda Energy & Minerals (SEML) just delivered a blockbuster Q1 FY26 with Net Profit jumping to ₹437 Cr (↑119% YoY) and Revenue at ₹1,633 Cr (↑76% YoY). Operating margins hit a jaw-dropping 38%, making analysts drool and competitors sweat. At ₹439, the stock trades at a P/E of 16.7, which for a company growing this fast is almost suspiciously cheap. Is SEML the next steel-powdered multibagger, or is this the top of the cycle?
Introduction
Founded in 1973, SEML has evolved from a regional steel player to a diversified powerhouse in steel, ferro alloys, and power. While peers like JSW and Tata Steel battle global commodity headwinds, SEML is quietly crushing numbers.
The company’s aggressive expansion in power and alloys, strategic acquisitions (hello SKS Power), and strong market prices for ferro alloys have supercharged earnings. However, commodity cycles are cruel mistresses – today’s hero can be tomorrow’s zero.
Business Model (WTF Do They Even Do?)
SEML’s business is a mix of:
- Steel Products: Long steel (pellets, billets, wire rods) – 46% of FY24 revenue.
- Ferro Alloys: Essential for stainless
