Tam Expansion Changing Consumption
Expected: FY26MEDIUM confidence
What: Sector Growth: 12.3%
Sar Auto Products Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +15.6%Weak10w Streak
In , Sar Auto Products Ltd (Auto Ancillaries - Gears) is outperforming Nifty 500 with +15.6% relative strength. Fundamentals: Weak. On a 10-week streak.
Sar Auto Products Ltd Key Facts
- PE Ratio
- 8966.0x
- Market Cap
- ₹1,076 Cr
- PAT Growth YoY
- +40%
- Revenue Growth YoY
- +2%
- OPM
- 11.7%
- RS vs Nifty 500
- +15.6%
Danger Bubble
What's Happening
⚠️PE rising despite falling earnings — price running ahead of reality
💰Trading 100% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Tam Expansion Changing Consumption
FY26MEDIUM
2. Mandatory Industry Norms
By 2026LOW
Key Risks
1. Implementation of New Labour Codes notified in November 2025 may lead to increme
MEDIUM2. Rising prices of aluminum, copper, and steel are pressuring margins across the a
MEDIUM3. War tensions have led to a complete cessation of export sales in the previous fi
LOWSector-Specific Signals
Annual Production Units115,747 unitsNot Given
Debtor Days37.4 daysImproved from 56.6
Export Sales Contribution0%Down from 1.03%
Max Gear Diameter Capability480 mm
Key Numbers
PAT Growth YoY
+40%
Inflection Up
Revenue YoY
+2%
Inflection Up
Operating Margin
11.7%
+8 bps YoY
PE Ratio
8966.0
Current Price
₹2,258
Fundamental Score
39/100
Weak
3Y PAT CAGR
-28%
Market Cap
1.0K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Sar Auto Products Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Mandatory Industry Norms
Expected: By 2026LOW confidence
What: Policy Support: Automotive Mission Plan 2016-26
What Are the Key Risks for Sar Auto Products Ltd?
Earnings deceleration risks from management commentary
Implementation of New Labour Codes notified in November 2025 may lead to increme
MEDIUMTrigger: Implementation of New Labour Codes notified in November 2025 may lead to incremental liabilities.
Impact: PAT impact: Not Given
Management view: Management is currently evaluating the financial impact with liability to be accounted for by March 2026.
Monitor: regulatory
Rising prices of aluminum, copper, and steel are pressuring margins across the a
MEDIUMTrigger: Rising prices of aluminum, copper, and steel are pressuring margins across the auto ancillary sector.
Management view: Wait and watch mode for price hikes.
Monitor: commodity
War tensions have led to a complete cessation of export sales in the previous fi
LOWTrigger: War tensions have led to a complete cessation of export sales in the previous fiscal year.
Impact: PAT impact: Export sales nil
Management view: Searching and grabbing new opportunities.
Monitor: geopolitical
What Did Sar Auto Products Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹3.86 Cr
YoY +0.78%QoQ +42.96%
Revenue showed a marginal year-on-year increase but a significant sequential recovery from Q2 FY26.
EBITDA
₹0.71 Cr
YoY -1%Margin 19.7%
EBITDA remained flat year-on-year with a slight margin contraction of 55 basis points.
PAT
₹0.21 Cr
YoY +40%QoQ +50%
Profitability improved significantly on a percentage basis due to a low base in previous periods.
Other Highlights
• Net profit margin improved to 5.44% in Q3 FY26 from 3.91% in Q3 FY25.
• Interest expenses remained below 1% of operating revenues as of latest filings.
• Employee costs accounted for 4.97% of operating revenues in the recent fiscal period.
What Sector Metrics Matter for Sar Auto Products Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Annual Production Units
115,747 units
YoY Not Given
Why: Not explained in source
Debtor Days
37.4 days
YoY Improved from 56.6
Why: Efficiency in collections
Export Sales Contribution
0%
YoY Down from 1.03%
Why: External factors and war tensions in international markets.
Max Gear Diameter Capability
480 mm
Why: Technical specification of the manufacturing facility.
Inventory Turnover Ratio
7.66
YoY Not Given
Why: Not explained in source
What Is Sar Auto Products Ltd's Management Guidance?
Forward-looking targets from management for FY26-27
Revenue Outlook
Management is hopeful to achieve better performance in next period.
Management Tone: CAUTIOUS
How Fast Is Sar Auto Products Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +2% | +9% | Inflection Up |
| PAT (Net Profit) | +40% | -28% | Inflection Up |
| OPM | 11.7% | +8 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Sar Auto Products Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Sar Auto Products Ltd's latest quarterly results?
Sar Auto Products Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +40.0% (turning around (inflection up))
- Revenue Growth YoY: +1.7%
- Operating Margin: 11.7% (volatile)
Is Sar Auto Products Ltd's profit growing or declining?
Sar Auto Products Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +40.0% (latest quarter)
- PAT Growth QoQ: +50.0% (sequential)
- 3-Year PAT CAGR: -28.1%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Sar Auto Products Ltd's revenue growth trend?
Sar Auto Products Ltd's revenue growth trend is turning around (inflection up).
- Revenue Growth YoY: +1.7%
- Revenue Growth QoQ: +48.5% (sequential)
- 3-Year Revenue CAGR: +9.4%
How is Sar Auto Products Ltd's operating margin trending?
Sar Auto Products Ltd's operating margin is volatile.
- Current OPM: 11.7%
- OPM Change YoY: +0.1% basis points
- OPM Change QoQ: -5.7% basis points
What is Sar Auto Products Ltd's 3-year profit and revenue CAGR?
Sar Auto Products Ltd's long-term compounding rates
- 3-Year Profit CAGR: -28.1%
- 3-Year Revenue CAGR: +9.4%
Is Sar Auto Products Ltd's growth accelerating or decelerating?
Sar Auto Products Ltd's earnings growth is turning around (inflection up) with positive momentum on a sequential basis.
- YoY Acceleration: +96.2% bps
- Sequential Acceleration: +33.3% bps
What is Sar Auto Products Ltd's trailing twelve month (TTM) performance?
Sar Auto Products Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹0 Cr
- TTM PAT Growth: -80.0% YoY
- TTM Revenue: ₹11 Cr
- TTM Revenue Growth: -38.1% YoY
- TTM Operating Margin: 14.1%
Is Sar Auto Products Ltd overvalued or undervalued?
Sar Auto Products Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 8966.0x
- Price-to-Book: 61.2x
What is Sar Auto Products Ltd's current PE ratio?
Sar Auto Products Ltd's current PE ratio is 8966.0x.
- Current PE: 8966.0x
- Market Cap: 1.1K Cr
How does Sar Auto Products Ltd's valuation compare to its history?
Sar Auto Products Ltd's current PE is 8966.0x.
- Current PE: 8966.0x
- Valuation Assessment: Significantly Overvalued
What is Sar Auto Products Ltd's price-to-book ratio?
Sar Auto Products Ltd's price-to-book ratio is 61.2x.
- Price-to-Book (P/B): 61.2x
- Book Value per Share: ₹37
- Current Price: ₹2258
Is Sar Auto Products Ltd a fundamentally strong company?
Sar Auto Products Ltd is rated Weak with a fundamental score of 39.2/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +1.7% (10% weight)
- PAT Growth YoY: +40.0% (10% weight)
- PAT Growth QoQ: +50.0% (10% weight)
- Margins stable (10% weight)
Is Sar Auto Products Ltd debt free?
Sar Auto Products Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹18 Cr
What is Sar Auto Products Ltd's return on equity (ROE) and ROCE?
Sar Auto Products Ltd's return ratios over recent years
- FY2023: ROCE 4.7%
- FY2024: ROCE 5.4%
- FY2025: ROCE 2.5%
Is Sar Auto Products Ltd's cash flow positive?
Sar Auto Products Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹0 Cr
- Free Cash Flow (FCF): ₹-7 Cr
- CFO/PAT Ratio: 83% (strong cash conversion)
What is Sar Auto Products Ltd's dividend yield?
Sar Auto Products Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹2258
Who holds Sar Auto Products Ltd shares — promoters, FII, DII?
Sar Auto Products Ltd's shareholding pattern (Mar 2026)
- Promoters: 74.5%
- DII (Domestic): 4.6%
- Public: 20.9%
Is promoter holding increasing or decreasing in Sar Auto Products Ltd?
Sar Auto Products Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 74.5% (Mar 2026)
- Previous Quarter: 74.7% (Dec 2025)
- Change: -0.18% (decreasing — worth monitoring)
How long has Sar Auto Products Ltd been outperforming Nifty 500?
Sar Auto Products Ltd has been outperforming Nifty 500 for 10 consecutive weeks, indicating consistent outperformance.
Is Sar Auto Products Ltd a new momentum entry or an established outperformer?
Sar Auto Products Ltd is an established outperformer with 10 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Sar Auto Products Ltd?
Sar Auto Products Ltd has 2 key growth catalysts identified from recent earnings analysis
- Tam Expansion Changing Consumption — Strong sector-wide demand for PVs and 2Ws provides a tailwind for gear manufacturers.
- Mandatory Industry Norms — Government roadmap for the industry provides long-term structural support for local manufacturers.
What are the key risks in Sar Auto Products Ltd?
Sar Auto Products Ltd has 3 key risks worth monitoring
- [MEDIUM] Implementation of New Labour Codes notified in November 2025 may lead to increme — Implementation of New Labour Codes notified in November 2025 may lead to incremental liabilities.
- [MEDIUM] Rising prices of aluminum, copper, and steel are pressuring margins across the a — Rising prices of aluminum, copper, and steel are pressuring margins across the auto ancillary sector.
- [LOW] War tensions have led to a complete cessation of export sales in the previous fi — War tensions have led to a complete cessation of export sales in the previous fiscal year.
What is Sar Auto Products Ltd's management guidance for growth?
Sar Auto Products Ltd's management has provided the following forward guidance for FY26-27
- Revenue outlook: Management is hopeful to achieve better performance in next period.
- Margin outlook: Not Given
- Management tone: cautious
What sector-specific metrics matter most for Sar Auto Products Ltd?
Sar Auto Products Ltd's most important sub-sector-specific KPIs from the latest concall
- Annual Production Units: 115,747 units (YoY Not Given) — Not explained in source
- Debtor Days: 37.4 days (YoY Improved from 56.6) — Efficiency in collections
- Export Sales Contribution: 0% (YoY Down from 1.03%) — External factors and war tensions in international markets.
- Max Gear Diameter Capability: 480 mm — Technical specification of the manufacturing facility.
- Inventory Turnover Ratio: 7.66 (YoY Not Given) — Not explained in source
Is Sar Auto Products Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Sar Auto Products Ltd may be worth studying
- Earnings growing at +40.0% YoY
- Cash flow is positive — CFO ₹0 Cr
What is the investment thesis for Sar Auto Products Ltd?
Sar Auto Products Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Tam Expansion Changing Consumption
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Implementation of New Labour Codes notified in November 2025 may lead to increme
What is the future outlook for Sar Auto Products Ltd?
Sar Auto Products Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: turning around (inflection up)
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Tam Expansion Changing Consumption
- Key Risk: Implementation of New Labour Codes notified in November 2025 may lead to increme
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.