Sharda Cropchem Ltd

NSE: SHARDACROP BSE: 538666

₹905

(3.19%)

Fri, 05 Jun 2026, 07:53 am

Market Cap81.8B

PE Ratio11.99

Dividend1.32

Distribution Services

Wholesale Distributors

24.5K

Sharda Cropchem Analysis

Pros

Dividends paid are well covered by earnings (2.4x coverage).
Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).
Sharda Cropchem's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

Dividend payments have increased, but Sharda Cropchem only paid a dividend in the past 5 years.
Whilst dividend payments have been stable, Sharda Cropchem has been paying a dividend for less than 10 years.
Sharda Cropchem's dividend is below the markets top 25% of dividend payers in India (3.08%).

Pros

Sharda Cropchem's earnings are expected to grow significantly at over 20% yearly.
Sharda Cropchem's earnings growth is expected to exceed the India market average.
Sharda Cropchem's earnings growth is expected to exceed the low risk savings rate of 7.2%.
Sharda Cropchem's earnings are expected to exceed the low risk growth rate next year.
An improvement in Sharda Cropchem's performance (ROE) is expected over the next 3 years.
Sharda Cropchem's revenue growth is expected to exceed the India market average.

Cons

Cash flow for Sharda Cropchem is expected to decrease over the next 2 years.
Sharda Cropchem's net income is expected to increase but not above the 50% threshold in 2 years time.
Sharda Cropchem is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Performance (ROE) is not expected to exceed the current IN Chemicals industry average.
Sharda Cropchem's revenue is expected to increase but not above the 50% threshold in 2 years time.
Sharda Cropchem's revenue is expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).

Pros

Sharda Cropchem is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Sharda Cropchem is profitable, therefore cash runway is not a concern.
Sharda Cropchem is profitable, therefore cash runway is not a concern.
Debt is well covered by operating cash flow (416303.1%, greater than 20% of total debt).
Debt is covered by short term assets, assets are 12355.8x debt.
Sharda Cropchem's cash and other short term assets cover its long term commitments.
The level of debt compared to net worth has been reduced over the past 5 years (6.2% vs 0% today).
Sharda Cropchem earns more interest than it pays, coverage of interest payments is not a concern.
Sharda Cropchem's level of debt (0%) compared to net worth is satisfactory (less than 40%).

Cons

Pros

The average tenure for the Sharda Cropchem board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Ramprakash's compensation has been consistent with company performance over the past year, both up more than 20%.
More shares have been bought than sold by Sharda Cropchem individual insiders in the past 3 months.

Cons

Ramprakash's remuneration is higher than average for companies of similar size in India.

Pros

Cons

Pros

Sharda Cropchem's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Cons

Sharda Cropchem's 1-year earnings growth is negative, it can't be compared to the 5-year average.
Sharda Cropchem used its assets less efficiently than the IN Chemicals industry average last year based on Return on Assets.
Sharda Cropchem's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Sharda Cropchem has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Sharda Cropchem's 1-year earnings growth is negative, it can't be compared to the IN Chemicals industry average.

Pros

Sharda Cropchem is good value based on expected growth next year.
BSE:538666 is up 38.6% outperforming the Chemicals industry which returned 6.9% over the past month.
BSE:538666 is up 38.6% outperforming the market in India which returned 8% over the past month.

Cons

Sharda Cropchem's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
Sharda Cropchem's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
Sharda Cropchem is overvalued based on assets compared to the IN Chemicals industry average.
Sharda Cropchem is overvalued based on earnings compared to the IN Chemicals industry average.
Sharda Cropchem is overvalued based on earnings compared to the India market.
538666 underperformed the Chemicals industry which returned 2.2% over the past year.
538666 underperformed the Market in India which returned -14.5% over the past year.