Sarthak Metals Ltd (SMLT) AI Stock Analysis

Sarthak Metals Ltd

(NSE:SMLT)

Select Model

Rating:54Neutral

Price Target:INR 76.00▲(7.28% Upside)

Action:reiterated

Date:10/02/26

The mid‑50s score reflects that weakening profitability and a recent shift to significant cash burn materially outweigh the strength of a low‑leverage, growing balance sheet, while a strong but stretched price trend and only moderately attractive valuation offer support but not enough to offset the financial risks.

Positive Factors

Conservative balance sheetLow leverage gives the company greater financial flexibility and reduces the burden of interest and refinancing obligations. This conservatively financed structure can help Sarthak Metals withstand weaker earnings periods and preserve capacity for investment or operating needs.

Negative Factors

Severe cash flow deteriorationSustained negative operating and free cash flow is a major fundamental weakness because reported earnings are not translating into cash. The resulting working-capital strain or investment burden can consume balance-sheet flexibility and limit internally funded growth.

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

Market Cap: INR 958.15M
Dividend Yield: 0.70%
Average Volume (3M): 3,081
Price to Earnings (P/E): 19.6
Beta (1Y): 0.80
Revenue Growth: 9.35%
EPS Growth: 29.16%
Country: India
Employees: 149
Sector: General
Sector Strength: 55
Industry: Steel

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. Th...

Sarthak Metals Ltd Financial Statement Overview

Summary

Profitability has fallen sharply from earlier peak years, margins are now in low single digits, and operating/free cash flow have turned meaningfully negative, partly offset by a conservative, low‑leverage balance sheet.

Income Statement

46Neutral

Balance Sheet

72Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.01B	1.92B	1.78B	3.04B	4.06B	4.55B
Gross Profit	302.35M	215.15M	306.31M	438.33M	480.29M	613.14M
EBITDA	84.74M	99.51M	96.69M	217.83M	431.02M	415.34M
Net Income	48.79M	46.11M	41.20M	138.28M	297.63M	274.81M
Balance Sheet
Total Assets	1.36B	1.37B	1.24B	1.20B	1.10B	1.16B
Cash, Cash Equivalents and Short-Term Investments	2.06M	1.00M	284.87M	349.64M	151.68M	64.75M
Total Debt	52.33M	65.99M	0	0	0	223.31M
Total Liabilities	104.66M	127.36M	42.24M	38.44M	49.94M	381.44M
Stockholders Equity	1.25B	1.24B	1.20B	1.16B	1.05B	779.37M
Cash Flow
Free Cash Flow	-158.11M	-323.13M	-73.57M	221.09M	319.87M	145.34M
Operating Cash Flow	-150.37M	-313.94M	-1.92M	268.07M	349.72M	164.37M
Investing Cash Flow	-22.48M	-35.85M	-56.71M	-33.29M	-15.30M	31.08M
Financing Cash Flow	20.54M	59.15M	-3.96M	-32.19M	-260.40M	-152.34M

Sarthak Metals Ltd Technical Analysis

Technical Analysis SentimentNeutral

Last Price70.84

Price Trends

50DMA68.14Positive

100DMA68.73Positive

200DMA70.36Positive

Market Momentum

MACD1.19Positive

RSI49.02Neutral

STOCH12.74Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SMLT, the sentiment is Neutral. The current price of 70.84 is below the 20-day moving average (MA) of 74.64, above the 50-day MA of 68.14, and above the 200-day MA of 70.36, indicating a neutral trend. The MACD of 1.19 indicates Positive momentum. The RSI at 49.02 is Neutral, neither overbought nor oversold. The STOCH value of 12.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SMLT.

Sarthak Metals Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SMLT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:HAPPYFORGE	75Outperform	INR 164.81B	50.48	―	0.23%	15.53%	21.46%
IN:NELCAST	72Outperform	INR 11.49B	30.36	―	0.49%	4.22%	-1.86%
IN:ALICON	65Neutral	INR 13.79B	38.26	―	0.58%	13.71%	0.15%
IN:MMFL	64Neutral	INR 23.18B	21.28	―	0.80%	9.58%	2.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SMLT	54Neutral	INR 971.97M	19.65	―	0.70%	9.35%	29.16%
IN:TIRUPATIFL	50Neutral	INR 8.96B	139.38	―	―	42.34%	-20.35%

* General Sector Average

Performance Comparison

IN:SMLT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SMLT	Sarthak Metals Ltd	70.47	-36.18	-33.92%
IN:ALICON	Alicon Castalloy Limited	857.40	-104.88	-10.90%
IN:HAPPYFORGE	Happy Forging Limited	1750.65	739.00	73.05%
IN:MMFL	MM Forgings Limited	498.15	191.72	62.57%
IN:NELCAST	Nelcast Limited	143.70	30.82	27.30%
IN:TIRUPATIFL	Tirupati Forge Ltd.	67.62	29.08	75.45%

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 results w...

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: Oct 01, 2026

Sarthak Metals Ltd AI Stock Analysis