Sarthak Metals Ltd (NSE/BSE: SMLT) has caught the attention of small-cap investors due to its strong presence in India’s steel and metallurgy industries. Founded in 1995 and headquartered in Bhilai, Chhattisgarh, the company manufactures and supplies metallurgical consumables such as cored wires, ferroalloys, and aluminum flipping coils, all of which are critical for steel refining and casting operations.
As of October 2025, the stock trades around ₹101–₹105, significantly below its 52-week high of ₹210.50. This decline mirrors broader weakness in the ferrous metals sector, caused by global commodity softness and reduced steel demand. Despite this, the company’s steady promoter holding of 68.85% and a debt-free balance sheet make it a small-cap stock to watch, especially for potential cyclical recovery.
In this detailed analysis, we’ll discuss Sarthak Metals’ fundamentals, past performance, and share price targets from 2025 to 2050, based on sector trends, historical growth, and financial projections.
About the Company
Founded in 1995, Sarthak Metals Ltd operates in the metallurgical consumables segment, primarily supplying to India’s large integrated steel producers. Its core products — cored wires, aluminum flipping coils, and ferroalloys — help improve the mechanical properties of steel, making it suitable for industries like automotive, shipbuilding, and infrastructure.
The company exports to several countries, with most revenue (90%+) derived from domestic steel mills. Sarthak Metals focuses on precision, quality, and consistent supply, making it a niche but significant player in India’s steel value chain.
Fundamental Analysis
Revenue & Profit Trends
In FY25, Sarthak Metals reported revenue of around ₹178–184 crore, marking a 41% YoY decline due to muted steel output and pricing pressure. Net profit stood at ₹3.78–4.12 crore, down over 24–60% across recent quarters.
While this performance looks weak, Q1 FY26 hinted at a gradual recovery, with 14% QoQ sales growth and improving order flows from major steel clients. The company’s low interest burden (interest expense <1% of revenue) supports financial stability despite cyclical downturns.
| Quarter (FY25) | Sales (₹ Cr) | YoY Growth | Net Profit (₹ Cr) | YoY Growth |
|---|---|---|---|---|
| Q1 (Jun 2025) | 46.22 | +14% | 1.06 | -24% |
| Q4 (Mar 2025) | 48.08 | -32% | 0.67 | -61% |
| FY25 Total | ~184 | -41% | 3.78 | -45% |
Key Insight: The company’s results mirror the cyclical steel slowdown, but the trend may reverse once domestic infrastructure spending rebounds.
Valuation Metrics
| Metric | FY25 Value | Interpretation |
|---|---|---|
| P/E Ratio | 34–44x | High due to earnings compression; normalized P/E likely to fall with profit recovery. |
| ROE | 3% | Needs to improve to at least 8–10% for re-rating. |
| EPS (FY25) | ₹0.77 | Expected to rise if FY26 margins expand. |
| P/B Ratio | 1.4x | Fair valuation for a debt-free, asset-heavy firm. |
| EV/Sales | ~0.8x | Slightly undervalued relative to industry peers. |
Balance Sheet Strength
Despite weak profits, Sarthak Metals has maintained a solid balance sheet with no long-term debt and rising cash reserves.
| Key Metric (Mar 2025) | Value (₹ Cr) | Notes |
|---|---|---|
| Total Assets | ~150–160 | Stable YoY |
| Shareholders’ Equity | ~120 | Supported by retained earnings |
| Debt | 0 | Fully debt-free |
| Current Liabilities | ~35 | Manageable |
| Cash & Equivalents | ~12 | 20% YoY increase |
Strengths:
- Debt-free structure ensures low financial risk.
- Healthy liquidity buffer to fund expansion when demand returns.
Weaknesses:
- Inventory buildup amid sluggish sales.
- Low asset turnover (~2.5%) impacting return ratios.
Shareholding Pattern (as of October 2025)
| Category | Holding (%) |
|---|---|
| Promoters | 68.85% |
| Public | 31.15% |
| Institutional | 0% |
Promoter confidence remains strong with no pledged shares — a good sign for long-term investors.
Past Stock Performance
Since touching ₹210.50 in early 2024, Sarthak Metals has fallen nearly 50%, currently around ₹105. Despite this drop, the company has shown historical resilience during past steel upcycles, often rebounding sharply when industrial demand rises.
Between 2020–2023, the stock had delivered over 250% gains, supported by India’s post-pandemic infrastructure boom. Current levels may represent a cyclical bottom if earnings recovery sustains into FY26.
Sarthak Metals Share Price Target Table (2025–2050)
| Year | Minimum (₹) | Average (₹) | Maximum (₹) |
|---|---|---|---|
| 2025 | 99 | 115 | 135 |
| 2026 | 85 | 90 | 95 |
| 2027 | 65 | 70 | 75 |
| 2028 | 50 | 55 | 60 |
| 2030 | 120 | 135 | 150 |
| 2035 | 180 | 230 | 280 |
| 2040 | 250 | 300 | 350 |
| 2045 | 320 | 380 | 440 |
| 2050 | 400 | 450 | 500 |
Sarthak Metals Share Price Target & Prediction 2025, 2026, 2027, 2028, 2029, 2030, 2035, 2040, 2045, and 2050
Sarthak Metals Share Price Target 2025
Sarthak Metals may remain range-bound between ₹99–₹135 in 2025. Although FY25 results reflected a sharp 41% decline in sales, early recovery signs in Q1 FY26—including volume stability and better operational efficiency—suggest the company may stabilize toward the end of FY26. Cost optimization and demand from the foundry sector will play a key role.
Sarthak Metals Share Price Target 2026
In 2026, steel prices are expected to remain under pressure due to global overcapacity and fluctuating raw material costs. The stock could average around ₹90 as the company continues to focus on margin preservation, capacity utilization, and improved product mix. The near-term outlook remains cautious.
Sarthak Metals Share Price Target 2027
As India’s industrial and infrastructure activities gradually recover, Sarthak Metals may see a turnaround in demand. With better inventory management and utilization improvement, mild upside toward ₹70–₹75 can be expected. Growth will be driven mainly by domestic manufacturing reforms and capital expenditure cycles.
Sarthak Metals Share Price Target 2028
Weak global metal cycles may still restrict major upside in 2028. Share prices could remain subdued near ₹55, reflecting cautious market sentiment. However, the company’s debt-free balance sheet, controlled working capital, and strong relationships with foundries may help limit downside risks.
Sarthak Metals Share Price Target 2030
By FY30, if India’s steel consumption maintains a healthy 6–7% CAGR and export opportunities improve, the company could regain growth momentum. Under these conditions, the stock may average around ₹135, with potential highs near ₹150, supported by broader economic expansion and operational leverage.
Sarthak Metals Share Price Target 2035
With recovery from cyclical lows and modernization of its metallurgical solutions, Sarthak Metals may see significant re-rating. The target range of ₹230–₹280 appears achievable if export penetration increases and profitability remains stable. Strategic expansion could unlock stronger valuations.
Sarthak Metals Share Price Target 2040
By 2040, consistent 6–8% annual growth across core industries like steel, construction, and heavy engineering may lift share prices to around ₹300. The company may also benefit from adopting newer metallurgical technologies and automation to boost margins and competitiveness.
Sarthak Metals Share Price Target 2045
Assuming steady compounding and India’s steel industry reaching maturity with strong domestic infrastructure expansion, the stock could touch ₹380 on average. A focus on environmentally-friendly and high-efficiency metallurgical products could further strengthen market presence.
Sarthak Metals Share Price Target 2050
Long-term projections at a conservative 7% CAGR indicate a price target of ₹450–₹500 by 2050. However, this assumes no severe commodity downturns, major competitive threats, or structural disruptions in the manufacturing sector. Sustainable growth will depend on innovation and stable demand cycles.
Growth Drivers
- Rising Infrastructure Spending: India’s steel consumption is projected to grow steadily under government projects like PM Gati Shakti.
- Debt-Free Financials: Strong liquidity enables the company to withstand cyclical downturns.
- Domestic Steel Capacity Expansion: Partnering with integrated mills ensures stable long-term demand.
- Export Opportunities: Scope to expand supply chains across Asia and the Middle East.
- Product Innovation: New alloy compositions and metallurgical consumables can boost profitability.
- Government Push for Manufacturing: “Make in India” policies support raw material producers.
Expert Views
Analyst sentiment around Sarthak Metals remains neutral to slightly positive for FY26. Brokers highlight the company’s financial discipline and balance sheet strength, while cautioning about weak near-term earnings visibility. Algorithmic forecasts, like those from WalletInvestor, rate it a high-risk stock for the short term but note potential turnaround by FY27–FY30.
Risks & Challenges
- Dependence on steel industry cycles.
- Declining profit margins during downturns.
- High volatility due to small-cap nature.
- Limited analyst coverage and liquidity.
- Competition from larger alloy suppliers.
Investment Suitability
Sarthak Metals suits high-risk, long-term investors who believe in India’s industrial growth and can tolerate cyclicality. The company’s debt-free status, steady promoter holding, and manufacturing expertise offer a safety cushion. However, short-term traders may prefer to wait for visible revenue growth before entry.
FAQs
1. What will be Sarthak Metals’ share price in 2030?
The projected average price for 2030 is ₹135, assuming moderate steel demand recovery and steady margins.
2. Can Sarthak Metals reach ₹200 by 2035?
Yes, if profitability improves and the steel cycle turns positive, ₹200–₹230 levels are achievable by 2035.
3. Is Sarthak Metals good for long-term investment?
It can be, provided the investor is patient and understands cyclical industries. The company’s financial strength makes it a potential turnaround story beyond FY26.
Conclusion
Sarthak Metals Ltd faces near-term challenges due to weak steel demand, but its strong fundamentals — debt-free balance sheet, experienced management, and steady promoter confidence — offer a foundation for recovery. While short-term volatility will persist, the long-term prospects depend on a revival in industrial output and metal prices.
For investors seeking exposure to India’s steel value chain through a niche, financially stable small-cap, Sarthak Metals is worth tracking for the next growth cycle.
Sources:
- Sarthak Metals Financial Reports
- NSE Reports
