AI Summary
✦ ClarthaSharda Motor Industries is an auto-components manufacturer and supplier to automobile and electronics OEMs in India. Exhaust systems drive its core offering across passenger vehicles, commercial vehicles, tractors, and generators, alongside suspension and roof systems. Seat frames, catalytic converters, and sheet-metal components provide additional revenue streams, supported by procurement and supply-chain services. With no major recent developments, revenue growth remained limited at 1.0%, although improving margins supported 5.1% profit growth. ROE is high at 29.1%, but debt/equity of 3.74 indicates substantial leverage amplifying shareholder returns and increasing financial risk. Profit growth exceeded revenue growth, suggesting operating improvement despite muted demand and no clear near-term catalyst. At 16.0x earnings, valuation appears fair relative to current growth, rather than discounted. The key open question is whether margin gains can continue while high leverage constrains flexibility across cyclical OEM demand.
Valuation Metrics
Trading 7.8% below historical median. Valuation is declining — currently in the strongly undervalued zone (z-score: -0.57). Confidence: 58%.
Forward outlook is unavailable because live next-12-month estimate data is not available for this ticker right now.
5Y Average
17.81
Current
16.02
Overvalued
24.24
Undervalued
14.82
5Y Average
11.66
Current
10.66
Overvalued
11.68
Undervalued
8.32
5Y Average
1.77
Current
1.62
Overvalued
2.03
Undervalued
1.50
Peers & Comparison
Sector: Consumer Discretionary · Theme: Auto Parts
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
BANCO PRODUCTS (I) LTD BANCOINDIAAuto Parts | +25.6% | 12.4% | 19.5x Undervalued | -55% vs avg | +14.2% |
CIE AUTOMOTIVE INDIA LTD CIEINDIAAuto Parts | +10.6% | 5.7% | 17.3x Undervalued | -60% vs avg | +3.3% |
FIEM INDUSTRIES LIMITED FIEMINDAuto Parts | +17.4% | 9.2% | 26.2x Undervalued | -40% vs avg | +42.3% |
GABRIEL INDIA LTD GABRIELAuto Parts | +29.8% | 5.2% | 83.0x Premium | +90% vs avg | +48.0% |
BELRISE INDUSTRIES LTD BELRISEAuto Parts | +12.1% | 5.2% | 43.5x Fair | 0% vs avg | +86.2% |
ASAHI INDIA GLASS LIMITED ASAHIINDIAAuto Parts | +15.0% | 8.5% | 52.1x Premium | +19% vs avg | +9.6% |
JBM AUTO LIMITED JBMAAuto Parts | +15.0% | 3.6% | 67.5x Premium | +54% vs avg | +9.3% |
ASK AUTOMOTIVE LIMITED ASKAUTOLTDAuto Parts | +52.4% | 6.8% | 40.8x Fair | -7% vs avg | +36.5% |
SHARDA MOTOR INDS LTD trades at a discount (16.3x vs peer avg 43.7x), suggesting potential undervaluation relative to the Auto Parts cohort. Peers include BANCO PRODUCTS (I) LTD, CIE AUTOMOTIVE INDIA LTD, FIEM INDUSTRIES LIMITED — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Financial chart data is not available for this company right now.
Results
Income statement data not available.
All values in ₹ Crores unless otherwise stated. Source: Company filings.