Buy Sarda Energy & Minerals; target price Rs 615

Axis Securities has recommended buying shares of Sarda Energy & Minerals. They set a target price of Rs 615 for the stock, which is currently priced at Rs 548. The firm explains that the stock has recently shown positive movement, supported by technical analysis. In its latest financial report for the quarter ended December 31, 2024, Sarda Energy & Minerals reported a total income of Rs 1,318.74 crore. This represents an 8.61% increase from the previous quarter and a 37% rise compared to the same quarter last year. The company's net profit for this period was Rs 188.16 crore. Sarda Energy & Minerals, established in 1973, is a small-cap company in the Metals - Ferrous sector, valued at Rs 19,312.26 crore. Its major products include wire rods, ferro alloys, pellets, sponge iron, and billets. The company recently broke out of a price consolidation zone, indicating a potential upward trend. Analysts noted that even though trading volumes were low during the consolidation, the subsequent surge suggests strong investor interest. Technical indicators show a positive outlook for the stock. As of December 31, 2024, the company's promoters held 73.16% of the shares, with foreign institutional investors (FIIs) owning 2.66% and domestic institutional investors (DIIs) holding 4.35%. The analysis suggests the stock could reach levels between Rs 595 and Rs 615 in the coming month.