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Mumbai: As the international prices of crude oil started rising again and the demon of inflation raised its head again in the whole world including America, the U.S. Israel's war with Hamas in Gaza and the possibility of the Federal Reserve delaying interest rate cuts following Iran's missile attack on Israel amid geopolitical tensions over the weekend and warnings of a new front with Iran. The sentiment in global markets has been shaken. India will not be in the grip of crude oil fire, now due to Lok Sabha elections the government cannot increase the prices of petrol and diesel, hence inflation will be controlled artificially. But if crude oil prices continue to rise after the elections and cross $100, then an increase in fuel prices will become inevitable. Hence, the crude factor will be important for the economy and markets, the next four days trading week could see Nifty spot in a wider range between 22855 and 22177 and Sensex between 75377 and 73133. Turbulence in global markets and geopolitical tensions.
Arjun's eyes: Sharda Motor Industries Ltd.
BSE (535602), NSE (Sharda) Listed, Reinvested Rs 2, Completely Debt-Free, Established in 1986, IATF 16949:2016 Certified, Dun & Brad Street 5A1 Rating, Promoters holding 73.20 per cent of Relan Group, Sharda Motor Industries Limited is one of the leading auto-accessories companies in the field of exhaust systems, suspension systems manufacturing and SCML and procurement in the automotive industry with latest technologies, designs, equipment and modern manufacturing facilities. The company has 9 manufacturing plants and one research and development centre, three sales offices at seven locations in four states of India including Sanand, Pune, Nashik, Chennai, Haridwar.
Subsidiaries, Joint Ventures: The Company has various subsidiaries, holdings, associates, joint ventures. In which (1) UDDIPT Mobility India Private Limited holds 74 percent stake (2) Exhaust Technology Private Limited. 50 percent stake in (3) Relan Industrial Finance Pvt. Ltd. Holding is 47.12 percent.
Strategic Partnership Units: The company has three strategic partnership units including (1) PUREM (formerly known as Imaginary) Germany for exhaust systems (2) Kinetic Green, India for EV batteries (3) Kinetic Green, India for rooftop systems For Bestop Inc USA.
Timely sale of Noida property plant: The company's managing director Asim Relan said during a conference call that the company has significant liquidity and the company will become debt free. Apart from this the company also has other surplus lines. For this, the first priority will be to utilize the opportunities of mergers and amalgamations. The company is pursuing various opportunities, and also wants to increase returns for shareholders. For which the company has also revised the dividend policy from 10 percent to 30 percent of the profit. The cash flow position of the company is very good, the company has prime land in Noida. There are no immediate plans to monetize it, but the company will pursue this at the right time if further opportunities arise at attractive pricing.
Investment of Rs 103 crore: Rs 688 crore Cash:
The company has investments of Rs 103 crore in mutual funds and others. (1) The company has more than Rs 688 crore as of December 31, 2023, including cash and cash equivalent investments and bank balances. (2) The company will sell the Noida property plant in due time. (3) The CEO and Managing Director of the company recently said that the company will consider suitable deals, mergers, acquisitions and acquisitions whenever the opportunity arises and the company will maintain good returns to the shareholders. This cash balance of Rs 688 crore and total investment of Rs 103 crore makes the per share price equal to Rs 266 as per the equity of the company of Rs 791 crore.
Major Customers: Major customers of the company include Mahindra, Tata, Cummins, Tefe, Magna, Sonalika, SML Isuzu, Nissan, Escorts, Mann, Isuzu, Force Motors, Ashok Leyland, Kubota etc.
Share holding pattern: Relan Group holds 73.20 per cent promoter holding, HNIs, mutual funds, FPIs etc hold 12.13 per cent, individual share capital holders up to Rs 2 lakh hold 14.67 per cent.
Dividend: 132 percent in March 2021, 408 percent in March 2022, 864 percent in March 2023
Book Value: Rs 150 in March 2021, Rs 202 in March 2022, Rs 263 in March 2023, Rs 360 in March 2024, Rs 476 in March 2025.
financial result:
(1) Full year April 2022 to March 2023: Consolidated net income up 20 per cent to Rs 2742 crore, net profit margin-NPM up 7.60 per cent, net profit up 40 per cent to Rs 208.33 crore, earnings per share (EPS) at Rs 70.07. Did it.
(2) Expected Q4 January 2024 to March 2024: Net income expected to grow 9 per cent to Rs 725 crore, net profit margin expected to grow 10.85 per cent to Rs 78.66 crore, quarterly earnings per share expected at Rs 26.46. Is
(3) Expected full year April 2023 to March 2024: Earnings per share are expected to be Rs 97.54, with net income of Rs 2890 crore and net profit of Rs 290 crore.
(4) Expected Full Year April 2024 to March 2025: Expected Net Income at 10% growth at Rs 3179 crore, NPM at 10.9%, Net Profit at Rs 346 crore, EPS expected at Rs 116 crore.
Thus (1) The author has no investment in the shares of the above company. Authors may have direct or indirect personal vested interests in research sources. Consult a qualified certified financial-investment advisor before making any investment decisions. The author, Gujarat Samachar or any other person will not be responsible for any possible loss on investment. (2) Expected earnings per share for full year April 2024 to March 2025 at Rs 116 and estimated book value at Rs 476 while paid-up share of Rs 2 at Rs 1538.60 on BSE, April 12, 2024 (NSE Rs 1539.90) Auto Ancillary Industry Available at a P/E of just 13.27 compared to an average P/E of 41.