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Sarthak Metals Ltd (IN:SMLT)
:SMLT
India Market
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Sarthak Metals Ltd (SMLT) AI Stock Analysis

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IN:SMLT

Sarthak Metals Ltd

(SMLT)

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Neutral 50 (OpenAI - Gpt-5.6Sol)
Rating:50Neutral
Price Target:
₹64.00
▼(-35.09% Downside)
Action:Reiterated
Date:08/23/26
The score is held back primarily by weak financial performance, especially the sharp breakdown in operating and free cash flow in 2025–2026 and materially lower profitability versus prior peaks. A low-leverage balance sheet provides some stability, while technical indicators show mild positive momentum and valuation appears broadly average with a low dividend yield.
Positive Factors
Low Leverage
Debt remains modest relative to the equity base, limiting balance-sheet strain and preserving financial flexibility. This conservative funding profile can help the company absorb weaker earnings and support operations without depending heavily on additional borrowing.
Negative Factors
Severe Cash Flow Deterioration
The sharp shift from positive cash generation in 2022–2024 to deeply negative operating and free cash flow creates a material funding concern. If sustained, this can increase reliance on balance-sheet resources and limit the cash available for investment, debt service, or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage
Debt remains modest relative to the equity base, limiting balance-sheet strain and preserving financial flexibility. This conservative funding profile can help the company absorb weaker earnings and support operations without depending heavily on additional borrowing.
Read all positive factors

Sarthak Metals Ltd (SMLT) vs. iShares MSCI India ETF (INDA)

Sarthak Metals Ltd Business Overview & Revenue Model

Company Description
Sarthak Metals Limited, established in 1995 and headquartered in Bhilai, India, produces and globally distributes a wide array of industrial materials. Its offerings encompass cored wires, various ferroalloys, aluminum wires, and industrial gases....

Sarthak Metals Ltd Financial Statement Overview

Summary
Overall fundamentals are pressured: profitability has weakened sharply versus 2022–2023 and margins compressed, while cash generation deteriorated significantly with negative operating cash flow in 2025 and a very large outflow in 2026, leading to deeply negative free cash flow. The key offset is a conservatively financed balance sheet with modest debt relative to equity, providing some resilience despite lower returns on equity.
Income Statement
46
Neutral
Balance Sheet
78
Positive
Cash Flow
29
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue2.01B1.92B1.78B3.04B4.06B4.55B
Gross Profit302.35M215.15M306.31M438.33M480.29M613.14M
EBITDA84.74M99.51M96.69M217.83M431.02M415.34M
Net Income48.79M46.11M41.20M138.28M297.63M274.81M
Balance Sheet
Total Assets1.36B1.37B1.24B1.20B1.10B1.16B
Cash, Cash Equivalents and Short-Term Investments2.06M1.00M291.68M349.64M151.68M64.75M
Total Debt52.33M65.99M0.000.000.00223.31M
Total Liabilities104.66M127.36M42.24M38.44M49.94M381.44M
Stockholders Equity1.25B1.24B1.20B1.16B1.05B779.37M
Cash Flow
Free Cash Flow-158.11M-323.13M-73.57M221.09M319.87M145.34M
Operating Cash Flow-150.37M-313.94M-1.92M268.07M349.72M164.37M
Investing Cash Flow-22.48M-35.85M-56.71M-33.29M-15.30M31.08M
Financing Cash Flow20.54M59.15M-3.96M-32.19M-260.40M-152.34M

Sarthak Metals Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price98.60
Price Trends
50DMA
68.38
Negative
100DMA
70.35
Negative
200DMA
74.90
Negative
Market Momentum
MACD
-1.17
Positive
RSI
35.20
Neutral
STOCH
14.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SMLT, the sentiment is Negative. The current price of 98.6 is above the 20-day moving average (MA) of 68.27, above the 50-day MA of 68.38, and above the 200-day MA of 74.90, indicating a bearish trend. The MACD of -1.17 indicates Positive momentum. The RSI at 35.20 is Neutral, neither overbought nor oversold. The STOCH value of 14.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SMLT.

Sarthak Metals Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
₹211.38B64.520.18%15.53%21.46%
60
Neutral
₹11.17B30.920.73%13.71%0.15%
60
Neutral
₹8.74B142.470.11%42.34%-20.35%
57
Neutral
₹30.37B26.890.64%9.58%2.00%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
52
Neutral
₹10.21B24.740.60%4.22%-1.86%
50
Neutral
₹872.31M18.060.78%9.35%29.16%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SMLT
Sarthak Metals Ltd
63.72
-41.48
-39.43%
IN:ALICON
Alicon Castalloy Limited
680.75
-151.28
-18.18%
IN:HAPPYFORGE
Happy Forging Limited
2,239.75
1,365.55
156.21%
IN:MMFL
MM Forgings Limited
629.10
295.97
88.84%
IN:NELCAST
Nelcast Limited
117.30
-27.95
-19.24%
IN:TIRUPATIFL
Tirupati Forge Ltd.
69.05
29.92
76.46%

Sarthak Metals Ltd Corporate Events

Sarthak Metals Publishes Q1 FY27 Unaudited Results in National and Regional Dailies
Aug 14, 2026
Sarthak Metals Limited has reported that its unaudited financial results for the quarter ended June 30, 2026, have been formally published in compliance with Regulation 47 of SEBI’s Listing Obligations and Disclosure Requirements. The result...
Sarthak Metals Closes Trading Window Ahead of June-Quarter Results
Jun 22, 2026
Sarthak Metals Ltd has announced that its trading window for dealing in the company’s securities will be closed for all directors, officers and designated persons from 1 July 2026, in line with SEBI’s Prohibition of Insider Trading Reg...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2026