Sandhar Technologies Limited

Consumer Cyclical — Auto Parts · NSE

₹539.60+₹7.15 (+1.34%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Sandhar Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sandhar Technologies Limited, together with its subsidiaries, engages in the manufacturing and assembling of automotive components for the automotive industry in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees1,253

Annual revenue₹4,794 Cr

How does it make money?

Turns over ₹4,794 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 1,253 employees supports ₹3.83 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.83 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE23.0%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 12.7% and earnings to grow about 36.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.7%

Est. earnings growth+36.3%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +67% while net margin moved +63% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+67%

Margin effect+63%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

• Debt/Equity of 0.86x is manageable
✗ Current ratio of 0.94 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
• Interest cover of 4.9x is adequate
✗ Debt has grown 20.5% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

15.6x

3Y Median

27.9x

40 monthly readings · mean 28.7x · range 16.3x–53.4x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 44% below its 3y median of 27.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 66% below the peer median of 45.7x.

vs. its own history

Cheap

27.9x median over 40 months · -44%

vs. sector peers

Cheap

45.7x median of 4 peers · -66%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.3x

PEG

0.39

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 7.9% to 14.9%.
Return on capital is rising
ROCE has improved from 9.8% to 17.4%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 75% over 3 years, from ₹657 Cr to ₹1,148 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 136% against revenue up 67% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹89 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.94 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 44% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 66% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 136% against revenue up 67%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 18.7% CAGR
Latest reported year was 26.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹89 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 14%✓ 17.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹3,256 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.6x

Fair

Fairly valued against the generic band

P/B Ratio

2.44x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹34.54

Profitable

Profitable on a per-share basis

ROE

14.9%

Moderate

Moderate capital efficiency

ROCE

17.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.86x

Moderate

Moderate leverage

Revenue Growth (YoY)

26.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

33.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.74%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹89 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

12.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

4.0%

Weak

Thin margins leave little room for error

Net Margin

4.0%

Average

Average bottom-line conversion

Current Ratio

0.94

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.70

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

562.2 / 607.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,866 Cr	₹3,472 Cr	₹3,838 Cr	₹4,794 Cr	+18.7%
EBITDA	₹253 Cr	₹350 Cr	₹403 Cr	₹469 Cr	+22.9%
EBITDA Margin	8.8%	10.1%	10.5%	9.8%	—
PAT (Net Profit)	₹73 Cr	₹110 Cr	₹142 Cr	₹199 Cr	+39.6%
EPS	₹12.12	₹18.24	₹23.53	₹33	+39.6%
ROE	7.9%	10.8%	12.4%	14.9%	—
ROCE	9.8%	13.7%	15.2%	17.4%	—
Total Debt	₹657 Cr	₹734 Cr	₹909 Cr	₹1,148 Cr	+20.5%
Free Cash Flow	₹51 Cr	₹38 Cr	-₹69 Cr	-₹89 Cr	—

🟢 Revenue has grown at 18.7% a year over 3 years.

🟢 EBITDA has grown at 22.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 9.8% over 3 years.

🟢 PAT (Net Profit) has grown at 39.6% a year over 3 years.

🟢 EPS has grown at 39.6% a year over 3 years.

🟢 ROE has risen from 7.9% to 14.9% over 3 years (+7.0 pts).

🟢 ROCE has risen from 9.8% to 17.4% over 3 years (+7.6 pts).

🔴 Total Debt has grown at 20.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹51 Cr to -₹89 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,476 Cr

Total Liabilities

₹2,143 Cr

Cash & Equivalents

₹51 Cr

Operating Cash Flow

₹210 Cr

Capex

-₹299 Cr

Shareholding (proxy)

Institutional Holding

15.4%

Insider Holding

70.4%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹896

+66.0% vs CMP

Target Range

₹842 – ₹950

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive3 mixed2 general

SANDHAR Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Here's Why We Think Sandhar Technologies (NSE:SANDHAR) Might Deserve Your Attention Today

Simply Wall Street, 22 May

Sandhar Technologies soars 11%, nears record high on strong Q4 results

Business Standard, 22 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Sandhar Technologies Share Price Target 2026: Rs 820 Analyst Forecast

Univest, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Sandhar Technologies Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Sandhar Technologies posts record Q1FY27 revenue, net profit up 33% YoY

scanx.trade, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Profitability

WeakFinancial Health · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑