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IndiaPulse

Sarda Energy & Minerals Limited (SARDAEN)

Small Cap

Metals stocks · Small cap · NSE

Sarda Energy & Minerals Ltd (SEML) is an integrated energy, minerals, and metals company. It has transformed into a diversified energy and mining business with operational thermal (600MW IPP, 81.5MW captive) and hydro power (167MW) assets, alongside coal/iron ore mines and a legacy metals business.

₹508.55
+2.00 · +0.39%
Quote04 Sept, 03:56 pm IST
Fundamentals05 Sept 2026 · screener
Score05 Sept, 10:20 pm IST · v4.3-runtime-valuation
Tags15 Aug 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · Metals P/E 20.4 (n=89)
Data confidence
Fresh enough for analysis
Investor decision lenses

One read, four checks

75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.

Investable fundamentals, management trust is supportive, price trend is neutral, and recent execution is mixed.

Suggested next step
Research, do not rush
The four lenses are not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
UNDERVALUED
66

Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.

Trust
Healthy Trust
76

low confidence · 0/0 claims checked

Technical
Neutral
53

Timing lens: price trend and sector relative strength.

Result consistency
mixed
57

Rolling lens: recent quarterly delivery, not the latest single-result score.

Latest result

Quarter ended 30 Jun 2026

Bad · 20/100

Rev -2% YoY · PAT +9% YoY · margin expansion · +28% QoQ · operating leverage

Filed 01 Aug 2026
Open results browser →
MetricThis quarterYoYQoQ
Revenue₹1,608 Cr-1.5%+28.2%
EBITDA₹653 Cr+5.8%+87.6%
Operating margin41.0%+300 bps+1300 bps
PAT₹478 Cr+9.4%+208.4%
PAT margin29.7%+297 bps+1737 bps

NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.

Business & thesis

Growth engines, tailwinds/headwinds, and risk radar from management commentary

Business and thesis

Where growth can come from, and what can break the case

Thesis intactReviewed 2026-06-17T03:09:13.222Z
Management commentary snapshot

FY26 saw record production across thermal power (5458 MU), hydro power (661.37 MU), coal (1.8 MT), iron ore pellets, sponge iron, and HB wire. Consolidated PAT grew 58% YoY to Rs 1,109 Cr, driven by energy becoming the primary earnings driver, contributing two-thirds of consolidated EBITDA.

SEML's strategic pivot to energy and mining has significantly diversified its earnings, reducing cyclicality. Strong FY26 performance, successful SKS Power integration, and plans to double energy capacity by FY30 support continued growth. Supreme Court ruling on SKS removes prior overhang.

Current business mix

EBIT by Segment (FY26)

Latest issuer-disclosed distribution across 3 reported categories.

Businessmix
Energy65.0%
Ferro Alloys16.0%
Steel19.0%
Growth engines

SKS Power Integration

Successful integration and scale-up of SKS Power operations, signing of profitable long-term PPAs.

Hydro Power Capacity

Higher hydropower capacity supported energy revenue and profits growth.

Coal Mining Expansion

Expansion of capacity at Gare Palma IV/7 Coal Mine to 1.80 MTPA.

Value-added Metal Segment

Strong growth in value-added metal segment volumes supported margins and profitability.

Capacity and execution

SKS Power (Thermal)

Plans to double capacity to 4x300 MW by FY30.

Hydro Power

Ongoing projects of 141 MW (24.9 MW Kotaiveera, 24 MW Mand, 24.9 MW Jelha, 66 MW Rahung).

Solar Power

Ongoing project of 50 MW.

Coal Mining

Ongoing projects of 5.30 MTPA (2.00 MTPA Gare Palma IV/5, 2.10 MTPA Bartunga JV, 0.60 MTPA Shahpur West, 0.60 MTPA Senduri).

Tailwinds

Energy Security & Import Substitution

Integrated energy and mining business aligned with India’s long-term vision for energy security.

Coal Gasification & Domestic Value Creation

Government push towards coal gasification creates long-term opportunities for SEML.

Manufacturing & Semiconductor Push

Planned energy capacity expansion positioned to benefit from increasing power and industrial demand.

Renewable Energy Capacity Addition

Strategic pivot with increased focus on renewable capacity to augment well for future growth.

Headwinds

Thermal Power Plant Shutdown

Q4 FY26 performance impacted by planned maintenance shutdown of one 300 MW turbine.

Captive Power Unit Shutdown

Q4 FY26 performance impacted by planned shutdown of one captive power unit of 30 MW for replacement.

Domestic Coal Production Curtailment

QoQ decline in domestic coal production as output curtailed due to full utilization of 1.80 MTPA limit.

Management accountability

What management said, and what results must prove

Management accountability

What management said, and what results must prove

Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.

Analyst reading lens
Compare BOTH

YoY comparison is crucial for assessing the full impact of strategic acquisitions and annual production records. QoQ is relevant for sequential momentum, but hydro power is seasonal, and Q4FY26 was impacted by planned maintenance shutdowns.

Sector KPIs management disclosed

Thermal Power Generation

5,458 MU in FY26, up 58% YoY (4,115 MU from IPP, up 83.9% YoY).

Hydro Power Generation

661.37 MU in FY26, up 30.9% YoY.

Coal Production (Domestic)

1,800 '000 MT in FY26, up 7.1% YoY.

SKS Power PLF

79% in FY26 (PAF: 84%).

Management forward view

Doubling EBITDA

Targeting to double EBITDA by FY30 through disciplined and profitable capacity expansion.

Energy as Core Vertical

Energy Division becomes major contributor to EBITDA from FY26 onwards.

Minerals as Second Lever

See the Mineral Business Vertical as the second major lever of growth after Energy.

Net Debt-Free Balance Sheet

Net debt-free balance sheet and comfortable liquidity driven by strong cash generation to support scalable growth.

Thesis monitor

Numbers and claims to verify in the next filings

CheckpointCurrent evidenceWhat to verify next
Thermal Power Capacity761.5 MW (as of FY26)Progress on doubling SKS Power capacity to 4x300 MW by FY30.
Hydro Power Capacity168 MW (as of FY26)Commissioning of 141 MW ongoing hydro projects.
Coal Mining Capacity1.80 MTPA (as of FY26)Progress on 5.30 MTPA ongoing coal mining projects.
Consolidated Net Debt-453 Cr (Net Cash as of Mar-26)Continued strong cash flow generation and prudent capital deployment to maintain strong liquidity.

Verification checkpoints are IndiaPulse research interpretation, not investment advice.

Technical timing lens

Trend score and candlestick chart

53Neutral

MACD − · sector +2.7pp vs Nifty (3M)

Stock trend: 45
Sector RS: 64
Sector 3M: +1.2% vs Nifty -1.5%

Technical chart

SARDAENdaily · 1Y · AUTO-6.3%
Latest close ₹508.55 on 2026-09-04
Bar
-0.3%
RSI
51
MACD hist
-0.70
52W pos
30%
2026-09-04O ₹510.05H ₹517.05L ₹504.20C ₹508.55Vol 5.3L sh
₹470.49₹510.69₹550.90₹591.11₹631.31508.552026-032026-06VolRSIMACD2026-032026-042026-062026-072026-09
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal

Daily technical trend read

Mixed signals

Signals are conflicting — long-term trend down. RSI 51. Wait for confirmation.

  • Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
  • SMA20 roughly flat — short-term momentum stalled.
  • RSI(14) at 51 — rising, no extreme reading.
  • MACD below signal but histogram contracting — bearish momentum easing.
  • 21% off 52W high · 12% above 52W low.

Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.

Nifty 500 leadership

Relative Strength & Trend Stage

24
RS percentile
Stage 1 Base / Transition
1M return
+2.2%
3M return
-4.6%
6M return
-7.6%
1Y return
-17.7%
RS 1D
+2
RS 20D
-2
Sector rank
#5
Industry rank
-
Stage evidence
  • Price is within 3.8% of the 30-week proxy.
  • The 30-week proxy changed +0.5% over 20 sessions.
  • The moving-average structure does not confirm Stage 2 or Stage 4.
50-DMA
price above
200-DMA
price below
Sector
improving
Industry
unranked
Relative-strength line vs Nifty 500 (base 100)
264 observations
04 Sept 2026Value 89.48+0.39%
808896104112Aug 25Dec 25Apr 26Sept 2689
RS vs Nifty 50089

Valuation & score drivers

U-Score 66 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor

66U-SCORE
Growth at Value

Fundamental score breakdown

UNDERVALUED
Valuation14/30
Growth20/25
Quality12/20
Balance Sheet9/15
Cash Flow6/10
Piotroski
8/9 (+5)
Penalties
0
Raw sum
66

Why this score?

Top U-Score contributors and drags from the latest stored fundamentals.

66/100 · UNDERVALUED

Positive drivers

  • FCF yield is supportive at 3.2%.
  • Piotroski is strong at 8/9.
  • Fair-value margin of safety is positive at 48.1%.

Main drags

  • Valuation is weaker at 14/30; verify the latest quarterly trend.
  • Quality is weaker at 12/20; verify the latest quarterly trend.
  • Balance sheet is weaker at 9/15; verify the latest quarterly trend.
Sector valuation model

Cyclical valuation: normalized earnings, not just trailing PE

Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.

Cyclical normalized
Primary lens
Mid-cycle PE/EV/EBITDA using multi-year average margins or earnings.
Secondary checks
Current margin versus 5-year average, balance sheet strength, commodity cycle.
Main risk check
A low trailing PE may mean peak-cycle earnings, not true cheapness.
PE
16.0
PB
2.4
EV/EBITDA
9.5
ROE
16.1%
ROCE
17.4%
FCF Yield
3.2%
Debt/Equity
0.4
MoS
+48.1%
Cyclical/value-trap warning
This sector can look cheap when profits are temporarily high. Check mid-cycle margins/earnings before relying on trailing PE.
Score movement

Stored run vs live recompute

This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.

Stored run: 05 Sept 2026
v4.3-runtime-valuation
Final score
66
Previous: 66
Verdict
UNDERVALUED
Previous: UNDERVALUED
Margin of safety
+48.1%
Previous: +48.9%

Score history

12 stored score snapshots. Latest stored move: +0 points.

05 Sept 2026
v4.3-runtime-valuation
69
68
66
66
66
66
66
66
66
66
66
66

Factor attribution

No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.

Modelled fair value

Graham Number
₹388.22
-31.0% MoS
Growth-justified P/E
30.6
Growth-justified Value
₹980.73
+48.1% MoS
PEG
0.69

Trust score

Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth

Trust Score
76Healthy Trust · low confidenceTrust Lite

Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.

Healthy Trust: Claim history is still being built. It ranks around the 81st percentile of the scored universe and 83rd percentile within Metals. Main check: results consistency is weak at 57/100.

High Trust Lite: Promoter holding is 73.2%. Key concern: OPM spread across recent quarters is 19%.

Computed 05 Sept 2026
management-trust-v1
125 docs text-extracted · 51 concalls text-extracted
Score band
Healthy Trust

Generally investable credibility. Look for weak sub-scores before increasing position size.

Relative rank
81st percentile

overall median 67 · Metals: 83rd pctile, median 70 · Small: 83rd pctile, median 66

Evidence depth
Financial-only

125 documents have extracted text, but claim history is not strong enough yet.

Claim delivery
Outcome history still building

0 claims extracted · No contradicted claim yet

How to read this Trust Score

Healthy Trust · low confidence
What it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Can support position sizing if valuation and trend also agree.

Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.

Forensic breakdown

Read low sub-scores as due-diligence warnings, not automatic sell signals.

Promoter
86
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
89
strong · leverage and solvency
Discipline
68
acceptable · capital discipline
Results
57
watch · quarterly consistency

Trust positives

  • Promoter holding is 73.2%.
  • Promoter pledge is zero.
  • FCF yield is positive at 3.2%.
  • 9 years of positive FCF.

Trust risks

  • OPM spread across recent quarters is 19%.

Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.

Financials

Full fundamentals table and 10-year revenue / profit / ROE history

Fundamentals

Valuation

P/E
16.00
P/B
2.44
EV/EBITDA
9.46
Market Cap
17920.00Cr

Profitability

ROE
16.10%
ROCE
17.40%
ROA
10.12%
Dividend Y
0.39%

Growth (CAGR)

Revenue 5Y
21.00%
EPS 5Y
24.00%
Revenue 3Y
11.00%
EPS 3Y
22.00%

Balance Sheet

Debt/Equity
0.36
Interest Coverage
7.60×
Altman Z
4.85
Book Value
209.00

Cash Flow

FCF Yield
3.18%
FCF Positive Y
9/5
OCF
1735.00 Cr
EPS TTM
32.05

Shareholding

Promoter Hold
73.16%
Promoter Pledge
0.00%
Momentum 52W
30%

Financial History

Updated 5/9/2026

Revenue

₹ Cr
No data

Net Profit

₹ Cr
No data

Return on Equity

%
No data

Peers

Business-comparable names in Metals, ranked by similarity

Verify on:NSE India ↗
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.