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Rakesh Madhav CFA

6th Aug 2025 · SEBI-Registered Analyst

Sarda Energy Breaks Out After Stellar Q1!

SARDAEN
🔍 What’s Fueling the Rally? 🔥 Q1 FY26 Net Profit more than doubled YoY to ₹434 Cr (vs ₹198 Cr) 💰 Revenue jumped 76% YoY to ₹1,633 Cr 💪 EBITDA margin expanded 970 bps to 38% — major operating leverage ⚡ Energy segment now contributes ~47% of revenue and ~67% of EBITDA 🏭 Merger of SKS Power has created a high-margin, integrated energy platform 📊 FY25 full-year: Revenue ₹4,815 Cr | Net Profit ₹700 Cr | EPS ₹19.86 💼 Strong balance sheet: ROE ~15%, D/E ratio ~0.45, current ratio ~3.0 👨‍💼 Promoter holding: 72.6% — high confidence (Source: LiveMint, Screener, ETMarkets) 📊 Technical View ✅ Stock has broken above long-term resistance at ₹526 on massive volumes (21.1M+) 📈 RSI surging at 83 — strong momentum but entering overbought zone 🔴 Price trading above upper channel; indicates strength + breakout continuation 🟢 Support now at ₹526–₹530; next target zone: ₹615–₹650 🔄 If profit booking kicks in, ₹495–₹500 may act as accumulation range 🎯 Outlook Short Term (1–3 weeks): Potential to touch ₹615+ if volume and sentiment sustain Watch for consolidation near ₹560–₹570 before further move Long Term (6–12 months): Energy business scaling rapidly; clean balance sheet If earnings momentum sustains, target zone shifts to ₹680–₹700 ✅ Conclusion: Sarda Energy is in breakout mode — backed by powerful Q1 results and rising energy margins. With strong technical structure and earnings visibility, both short-term traders and long-term investors have a reason to stay bullish.

#SectorBreakouts#FundamentalViews#TechnicalViews
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