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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Salasar Techno Engineering Ltd

Basic Stock Data

Last Updated: May 30, 2024, 6:17 am

Market Cap 3,575 Cr.
Current Price 21.1
High / Low34.1/8.28
Stock P/E70.0
Book Value 2.64
Dividend Yield0.09 %
ROCE14.3 %
ROE11.9 %
Face Value 1.00
PEG Ratio5.19

Competitors of Salasar Techno Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Thermax Ltd 64,141 Cr. 5,3835,573/2,192109 3730.19 %16.9 %14.1 % 2.00
Lokesh Machines Ltd 758 Cr. 410476/14254.7 1060.00 %11.4 %7.80 % 10.0
Thejo Engineering Ltd 2,857 Cr. 2,6543,250/1,35051.3 2330.07 %28.6 %24.9 % 10.0
Mazda Ltd 534 Cr. 1,3331,661/83216.9 5301.05 %21.2 %15.8 % 10.0
Mold-Tek Technologies Ltd 736 Cr. 258399/18026.4 42.81.32 %31.3 %24.7 % 2.00
Industry Average13,805.20 Cr2,007.6051.66256.960.53%21.88%17.46%6.80

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales174212133200174212211259241295262275304
Expenses156192118179157196194238217265238250266
Operating Profit18191522171617212430242537
OPM %10%9%11%11%10%8%8%8%10%10%9%9%12%
Other Income352-1001001000
Interest555566698981112
Depreciation1122222222223
Profit before tax1517101410910111419141223
Tax %24%43%29%27%27%18%26%29%26%23%26%27%28%
Net Profit12107107778111510917
EPS in Rs0.090.070.050.070.050.050.050.050.070.090.060.060.11

Last Updated: May 11, 2024, 2:44 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 12:59 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1082132923303103844956555265977191,0051,136
Expenses1121962693022813464415824745406509131,020
Operating Profit-41723282939547352576992116
OPM %-4%8%8%8%9%10%11%11%10%10%10%9%10%
Other Income1700-20111210222
Interest681110978162118223240
Depreciation1226334556789
Profit before tax671010172943532844425468
Tax %27%31%41%38%36%35%31%38%20%32%26%26%
Net Profit5566111930332230314051
EPS in Rs0.100.100.120.130.220.190.220.250.170.210.220.250.32
Dividend Payout %0%0%0%0%0%0%4%10%12%5%9%8%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%20.00%0.00%83.33%72.73%57.89%10.00%-33.33%36.36%3.33%29.03%
Change in YoY Net Profit Growth (%)0.00%20.00%-20.00%83.33%-10.61%-14.83%-47.89%-43.33%69.70%-33.03%25.70%

Growth

Compounded Sales Growth
10 Years:17%
5 Years:15%
3 Years:24%
TTM:23%
Compounded Profit Growth
10 Years:23%
5 Years:7%
3 Years:22%
TTM:57%
Stock Price CAGR
10 Years:%
5 Years:56%
3 Years:64%
1 Year:157%
Return on Equity
10 Years:14%
5 Years:13%
3 Years:12%
Last Year:12%

Last Updated: April 15, 2024, 11:34 am

Salasar Techno Engineering Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital555551013131314293232
Reserves414652597087146176194238253369385
Borrowings576584755969109151165198249273346
Other Liabilities22436648429010013282102152240264
Total Liabilities1241592061871762553684724545536839141,027
Fixed Assets363754545562727791113126172227
CWIP01000010006210
Investments00002102110000
Other Assets87120152133119193295393361430551721800
Total Assets1241592061871762553684724545536839141,027

Reserves and Borrowings Chart

Salasar Techno Engineering Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -5414223012-43-1231-71-0
Cash from Investing Activity -9-4-18-7-6-18-16-14-22-24-27-70
Cash from Financing Activity 1315-16-2456522-11302670
Net Cash Flow-102-1-0-06-4-1-0-00

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-61.00-48.00-61.00-47.00-30.00-30.00-55.00-78.00-113.00-141.00-180.00-181.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days1078988637176112121148147149120
Inventory Days17011910388781049795100123122186
Days Payable365166332752354723324151
Cash Conversion Cycle241158125118122128174169226238230254
Working Capital Days221133106948998138143181191185163
ROCE %14%16%16%19%24%24%23%14%15%13%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Apr 2024
Promoters69.70%69.70%69.70%69.70%63.07%63.07%63.07%63.07%63.07%63.07%63.07%58.76%
FIIs0.00%0.00%0.55%0.93%12.18%9.40%9.03%9.04%9.00%8.85%3.00%6.27%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.00%0.00%0.00%0.00%0.00%
Public30.30%30.30%29.75%29.38%24.74%27.51%27.86%27.87%27.92%28.07%33.92%34.95%
No. of Shareholders20,57318,95722,36524,68228,57530,97231,95132,78941,04676,8024,50,2794,50,357

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.0010.0010.0010.0010.00
Basic EPS (Rs.)1.3311.0122.1516.8425.04
Diluted EPS (Rs.)1.3311.0122.1516.8425.04
Cash EPS (Rs.)1.5313.4924.8620.6028.51
Book Value[Excl.RevalReserv]/Share (Rs.)12.7098.81177.10155.92142.59
Book Value[Incl.RevalReserv]/Share (Rs.)12.7098.81177.10155.92142.59
Revenue From Operations / Share (Rs.)31.83251.61417.62396.12492.94
PBDIT / Share (Rs.)2.9824.9146.9940.2855.87
PBIT / Share (Rs.)2.7322.4243.0636.5252.40
PBT / Share (Rs.)1.7114.7930.7021.0440.12
Net Profit / Share (Rs.)1.2711.0120.9316.8425.04
NP After MI And SOA / Share (Rs.)1.2711.0120.9316.8425.04
PBDIT Margin (%)9.379.8911.2510.1611.33
PBIT Margin (%)8.588.9110.309.2210.63
PBT Margin (%)5.375.877.355.318.13
Net Profit Margin (%)4.004.375.014.255.08
NP After MI And SOA Margin (%)3.994.375.014.255.08
Return on Networth / Equity (%)10.0211.1511.8310.8017.56
Return on Capital Employeed (%)19.1119.1720.8422.2733.05
Return On Assets (%)4.394.605.404.937.04
Long Term Debt / Equity (X)0.100.150.130.020.02
Total Debt / Equity (X)0.670.880.770.790.79
Asset Turnover Ratio (%)1.261.131.171.141.56
Current Ratio (X)1.521.481.651.481.47
Quick Ratio (X)0.941.051.181.081.02
Inventory Turnover Ratio (X)2.813.423.433.054.46
Dividend Payout Ratio (NP) (%)7.859.084.4414.847.98
Dividend Payout Ratio (CP) (%)6.567.413.7312.137.01
Earning Retention Ratio (%)92.1590.9295.5685.1692.02
Cash Earning Retention Ratio (%)93.4492.5996.2787.8792.99
Interest Coverage Ratio (X)2.983.263.802.604.55
Interest Coverage Ratio (Post Tax) (X)2.302.442.692.093.04
Enterprise Value (Cr.)1511.05845.05712.89258.62437.20
EV / Net Operating Revenue (X)1.501.181.190.490.66
EV / EBITDA (X)16.0411.8810.624.835.89
MarketCap / Net Operating Revenue (X)1.250.840.870.190.45
Retention Ratios (%)92.1490.9195.5585.1592.01
Price / BV (X)3.152.152.060.491.58
Price / Net Operating Revenue (X)1.250.840.870.190.45
EarningsYield0.030.050.050.210.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹22.01

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 4.32% compared to the current price ₹21.1

Intrinsic Value: ₹24.98

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 18.39% compared to the current price ₹21.1

Last 5 Year EPS CAGR: 13.49%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.00%, which is a positive sign.
  2. The company has higher reserves (162.77 cr) compared to borrowings (146.15 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (356.23 cr) and profit (31.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 145.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 181.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Salasar Techno Engineering Ltd:
    1. Net Profit Margin: 4.00%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 19.11% (Industry Average ROCE: 21.88%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 10.02% (Industry Average ROE: 17.46%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.30
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.94
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 70.0 (Industry average Stock P/E: 51.66)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.67
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Salasar Techno Engineering Ltd. is a Public Limited Listed company incorporated on 24/10/2001 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L23201DL2001PLC174076 and registration number is 174076. Currently Company is involved in the business activities of Manufacture of metal frameworks or skeletons for construction and parts thereof ((towers, masts, trusses, bridges etc.). Company’s Total Operating Revenue is Rs. 690.90 Cr. and Equity Capital is Rs. 28.57 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - GeneralE-20, South Extension I, New Delhi Delhi 110049compliance@salasartechno.com
http://www.salasartechno.com
Management
NamePosition Held
Mr. Alok KumarChairman & Managing Director
Mr. Shashank AgarwalJoint Managing Director
Mr. Shalabh AgarwalWhole Time Director
Ms. Tripti GuptaWhole Time Director
Mr. Sanjay ChandakInd.& Non Exe.Director
Mr. Vijay Kumar JainInd.& Non Exe.Director
Mr. Mukesh Kumar GargInd.& Non Exe.Director
Mrs. Garim DhamijaInd. Non-Executive Director

FAQ

What is the latest fair value of Salasar Techno Engineering Ltd?

The latest fair value of Salasar Techno Engineering Ltd is ₹22.01.

What is the Market Cap of Salasar Techno Engineering Ltd?

The Market Cap of Salasar Techno Engineering Ltd is 3,575 Cr..

What is the current Stock Price of Salasar Techno Engineering Ltd as on 30 May 2024?

The current stock price of Salasar Techno Engineering Ltd as on 30 May 2024 is ₹21.1.

What is the High / Low of Salasar Techno Engineering Ltd stocks in FY 2024?

In FY 2024, the High / Low of Salasar Techno Engineering Ltd stocks is 34.1/8.28.

What is the Stock P/E of Salasar Techno Engineering Ltd?

The Stock P/E of Salasar Techno Engineering Ltd is 70.0.

What is the Book Value of Salasar Techno Engineering Ltd?

The Book Value of Salasar Techno Engineering Ltd is 2.64.

What is the Dividend Yield of Salasar Techno Engineering Ltd?

The Dividend Yield of Salasar Techno Engineering Ltd is 0.09 %.

What is the ROCE of Salasar Techno Engineering Ltd?

The ROCE of Salasar Techno Engineering Ltd is 14.3 %.

What is the ROE of Salasar Techno Engineering Ltd?

The ROE of Salasar Techno Engineering Ltd is 11.9 %.

What is the Face Value of Salasar Techno Engineering Ltd?

The Face Value of Salasar Techno Engineering Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Salasar Techno Engineering Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE