Sarda Energy & Minerals Limited (SEML) is the flagship company of Sarda Group, incorporated in 1973, and is engaged in the production of steel, ferro alloys and power. The company is an India-based enterprise operating in the metal, mining and power sector with segments including Steel, Ferro and Power. Originally established as Raipur Alloys & Steel Limited, the company was renamed to Sarda Energy & Minerals Limited following the merger of Chhattisgarh Electricity Company Ltd. and Raipur Gases Pvt. Ltd. in 2006-07.
The company operates as an integrated steel producer of long steel products including iron pellets, sponge iron, billets, wire rods, and HB wire, with a steel manufacturing facility at Raipur, Chhattisgarh. SEML's comprehensive product portfolio includes sponge iron (DRI), billets, ferroalloys, wire rods, hard bright (HB) wires, iron ore, thermal power, hydropower and pellets, producing sponge iron for captive use to produce steel ingots and billets through an induction furnace route.
The company's production capacities are strategically distributed across different segments:
- Pellets: 9 lakh MT
- Sponge Iron: 3.6 lakh MT
- Billets: 3 lakh MT
- Wire Rod: 2.5 lakh MT
- H.B. Wire: 0.45 Lakh MT
The company produces and exports manganese-based ferroalloys to approximately 60 countries, as ferro alloys are value-added products usually used for the manufacturing of mild steel and special steel. Beyond steel production, SEML is also involved in coal and iron ore mining, as well as operation of thermal and solar power plants, and offers iron ore pellets.
Sarda Energy & Minerals has achieved a market capitalization of ₹15,240 crore as of recent data, reflecting a significant 75.8% increase over the past year. The company's market capitalization stands at ₹15,758 crore according to the latest available data.
For the standalone results of March 2025, Sarda Energy reported net sales of ₹1,013.09 crore, representing a 51.21% year-on-year growth. Net profit rose 14.03% to ₹115.25 crore, while EBITDA increased by 67%, and the EPS improved to ₹3.27.
The company's Q4 FY25 consolidated revenue jumped 37.86% year-on-year to ₹1,285.64 crore. Net profit for Q4 FY25 increased 14.74% year-on-year to ₹108.29 crore.
Key quarterly performance indicators for Q2 FY25:
- Consolidated net profit jumped 36% to ₹203 crore
- Revenue from operations increased 16% to ₹1,159 crore
The company maintains a promoter holding of 73.2%. Recent data shows promoter holding has increased to 73.16% as of March 2025 from 72.64% as of June 2024. The company is led by K K Sarda as Chairman & Managing Director, with Pankaj Sarda as Managing Director, Manish Sethi as Company Secretary & Compliance Officer, and P K Jain as Whole Time Director & CFO.
SEML operates through various subsidiaries including Sarda Energy & Minerals Hongkong Limited, Sarda Global Venture Pte. Limited, Sarda Global Trading DMCC, Sarda Metals & Alloys Limited, Madhya Bharat Power Corporation Limited, Parvatiya Power Limited, Sarda Energy Limited and Natural Resources Energy Private Limited.
The company has recently expanded its power generation capacity with Chhattisgarh Hydro Power LLP installing a 24.9 MW Rehar Small Hydro Project, which has commenced trial production of power and been synchronized with the Grid.
Sarda Energy & Minerals Limited has received approval to expand its coal washery capacity from 0.96 MTPA to 1.8 MTPA in Raigarh, Chhattisgarh, aligning with the company's strategic goals in resource processing and infrastructure.
The company secured a coal mine allocation with a revenue-sharing model with the state government set at 25.75%, featuring G8 (Provisional) grade coal, with necessary agreements to be finalized in the near future.
Current key financial metrics include a Stock P/E ratio of 21.8, Book Value of ₹178, Dividend Yield of 0.23%, ROCE of 15.6%, and ROE of 13.8%. The company's dividend payout has been conservative at 7.69% of profits over the last 3 years.
The stock has demonstrated strong performance with returns of 6.88% over the last six months and 75.25% over the past year. The company's 52-week high share price is ₹565.55 and 52-week low is ₹200.75.
Sarda Energy & Minerals continues to strengthen its position as an energy and minerals company with operational iron ore and coal mines in Chhattisgarh and thermal and hydropower generation plants across India, maintaining a growing portfolio of assets.
