Sharda Motor Industries Limited was incorporated on January 29, 1986 under the Companies Act, 1956 with the Registrar of Companies NCT Delhi & Haryana and is based in New Delhi, India. The company has established itself as a prominent player in the Indian automotive components industry, operating for nearly four decades with a strong manufacturing base and diverse product portfolio.
Sharda Motor Industries Ltd is primarily engaged in the manufacturing and assembly of Auto Components and White Goods Components. The Company serves as a 'Tier I' vendor for some of major Automobiles and Electronics Original Equipment Manufacturers (OEMs), positioning itself as a key supplier in the automotive supply chain. It has got a 'State of Art' manufacturing facilities across various locations in 4 states of India, demonstrating its pan-India manufacturing capabilities.
The company operates a comprehensive product portfolio serving various segments of the automotive industry. The Company's production range includes Exhaust Systems, Catalytic Converters, Suspension Systems, Sheet Metal Components and Plastic parts for Automotive. Their product portfolio includes Emission Control Systems, Suspension Systems, Specialized Roof Systems, Independent Front Suspension Assembly, Upper & Lower Control Arms, Front Axle Assembly, Soft-top Canopies.
Its exhaust systems include Passenger Vehicle-BS IV System, Passenger Vehicle-BS VI System, Commercial Vehicle-BS IV System, Commercial Vehicle-BS VI System, Tractors-Tier IV System, Passenger Vehicle-Cold End System, Passenger Vehicle-Resonator, Commercial Vehicle-Muffler, Passenger Vehicle-Muffler and Generator-Muffler. This diverse product range allows the company to cater to multiple vehicle categories and emission standards, providing resilience against market fluctuations.
As of Jul 03, 2025 03:53 PM, the market cap of Sharda Motor Industries Ltd stood at Rs. 6,000.28 Cr, establishing it as a significant player in the auto components sector. The company has demonstrated strong financial performance with consistent profitability and growth metrics.
Sharda Motor Industries Ltd (BOM:535602) reported a 6.6% ROI growth in Q4 FY25 revenues, reaching Rs. 749.85 crores. Full Year FY25 Gross Profit: Rs. 740.32 crores, 11% year-on-year increase, indicating strong operational efficiency and pricing power.
Full Year FY25 ABIDDA: Rs. 396.37 crores, 9.7% increase, with a margin of 14%. ABIDDA for FY25 rose by 9.7% over FY24, with a margin improvement from 12.9% to 14%, demonstrating the company's ability to enhance profitability through operational improvements.
Full Year FY25 Profit After Tax (PAT): Rs. 314.92 crores, reflecting solid bottom-line performance. For the full year,net profit rose 5.12% to Rs 314.92 crore in the year ended March 2025 as against Rs 299.59 crore during the previous year ended March 2024.
The latest PE ratio of Sharda Motor Industries Ltd as of Jul 03, 2025 03:53 PM is 19.19, indicating reasonable valuation levels. ROCE 38.7 % ROE 29.7 % showcase excellent capital efficiency and strong returns for shareholders.
Company is almost debt free, providing financial flexibility and reduced interest burden. Company has delivered good profit growth of 43.3% CAGR over last 5 years, demonstrating consistent long-term performance.
The company has undertaken several strategic initiatives to enhance shareholder value. The company successfully carried out a buyback program and announced a 1:1 bonus issue along with a Rs. 32.5 per share dividend. Sharda Motor Industries announced that the Board of Directors of the Company at its meeting held on 24 May 2025, inter alia, have recommended the final dividend of Rs 32.5 per equity Share (i.e. 1625%).
In Q1 FY25, Sharda Motor Industries Ltd executed a buyback of 10.28 lakh shares via a tender offer at ₹1800/share. This was the first-ever buyback in Sharda Motor Industries Ltd history, signaling management's confidence in the company's prospects and commitment to returning cash to shareholders.
The company has undergone significant business transformation in recent years. During the year 2018-19, NDR Auto Components Limited (NACL) was incorporated as Wholly Owned Subsidiary of the Company as Special Purpose Vehicle (SPV) wherein the entire Automobile Seating Business of the Company was demerged as separate entity post the sanction/ approval of Scheme of Arrangement through Demerger by the requisite Authorities.
This strategic restructuring has allowed the company to focus on its core automotive components business while providing flexibility for specialized operations. In FY24, Sharda Motor Industries Ltd. gained from the implementation of BS VI RDE norms, which increased their content per vehicle by 10-15%. This regulation helped drive Sharda's robust YoY gross profit increase of 25%.
The company is well-positioned to benefit from several growth drivers in the automotive sector. Sharda Motor Industries Ltd (BOM:535602) secured significant new orders for its newly established lightweighting vertical and export business, indicating future growth potential. TREM V is expected to be rolled out by April 2026; thus, a sales jump from TREM V can be expected in FY27.
Over the last 5 years, revenue has grown at a yearly rate of 20.11%, vs industry avg of 8.27%, demonstrating the company's ability to outperform industry growth rates. Over the last 5 years, market share increased from 0.53% to 0.85%, indicating successful market share gains.
The promoters of Sharda Motor Industries Ltd are Ajay Relan and Aashim Relan. They collectively own 63.35 per cent of the total equity. The chairman of the company is Kishan N Parikh, providing experienced leadership to guide the company's strategic direction.
There is no promoter pledging in Sharda Motor Industries Ltd, indicating strong promoter confidence and financial stability. The company maintains transparent governance practices with regular disclosures and investor communications.
Sharda Motor Industries Ltd presents a compelling investment opportunity in the auto components sector, backed by strong financial performance, strategic positioning, and commitment to shareholder value creation. The company's focus on innovation, operational excellence, and market expansion positions it well for sustained growth in the evolving automotive landscape.
