Sharda motors posted good numbers for q2 FY 24. Half year EPS at 45. Net cash of 650 crores. This is a company which keeps on churning free cash flows. In concall, management says they are “cautiously optimistic. ” New growth engine can be the 3 and 4 litre small commercial vehicles. And the change in emission norms, though part of it could be delayed because of impending elections next year.
Valuation wise, it appears cheap mainly because I think market has concerns related to its terminal value because it is catering to mainly ICE vehicles as of now. Plus management does not give fancy commentary and fancy targets in any concalls. (which actually is a good thing. ) Very conservative management in terms of projections and use of cash on balance sheet.
Technically stock price crossed its previous all time high of 954 few weeks back, posted a swing high of 1100, and then in market meltdown went down and took support at the 30 WEMA at 864 and bounced from there. Post results stock rallied and crossed previous swing high of 1100 and posted another high of 1158, and settled down at a fresh all time high closing of 1100. disc: invested.
sharda q2 fy 24 presentation.pdf (7.5 MB)
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