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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Salasar Techno Engineering Ltd

About the Company - Salasar Techno Engineering Ltd

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

Salasar Techno Engineering Ltd. Share Price Update

Share PriceValue
Today₹25.30
Previous Day₹24.35

Basic Stock Data of Salasar Techno Engineering Ltd

Market Cap 4,189 Cr.
Current Price 26.5
High / Low34.1/7.20
Stock P/E82.0
Book Value 2.64
Dividend Yield0.08 %
ROCE14.3 %
ROE11.9 %
Face Value 1.00

Data Source: screener.in

Competitors of Salasar Techno Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mold-Tek Technologies Ltd 622 Cr. 219399/21519.7 38.61.58 %41.7 %33.2 % 2.00
Thejo Engineering Ltd 2,465 Cr. 2,2912,340/1,12651.5 2050.09 %20.8 %18.1 % 10.0
Sterling & Wilson Renewable Energy Ltd 13,846 Cr. 594647/253 17.20.00 %65.4 %338 % 1.00
McNally Bharat Engineering Company Ltd 129 Cr. 6.127.23/2.90 1770.00 %28.3 %% 10.0
A2Z Infra Engineering Ltd 225 Cr. 12.815.2/5.10 2.010.00 %6.57 %15.7 % 10.0
Industry Average3,457.40 Cr624.5814.2487.960.33%32.55%81.00%6.60

Salasar Techno Engineering Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales147.55174.36211.50132.79200.19173.61212.28210.67258.73240.80294.70261.86275.35
Expenses132.53156.47192.26118.04178.69156.98196.23193.77237.72216.74264.85238.27250.43
Operating Profit15.0217.8919.2414.7521.5016.6316.0516.9021.0124.0629.8523.5924.92
OPM %10.18%10.26%9.10%11.11%10.74%9.58%7.56%8.02%8.12%9.99%10.13%9.01%9.05%
Other Income1.153.385.012.06-0.620.350.440.580.050.140.990.490.31
Interest4.174.515.384.755.415.566.095.778.537.829.458.1910.60
Depreciation1.381.401.471.761.771.851.711.871.921.992.172.232.29
Profit before tax10.6215.3617.4010.3013.709.578.699.8410.6114.3919.2213.6612.34
Tax %22.98%24.02%43.33%28.74%26.86%27.27%17.84%25.61%29.12%25.71%23.31%25.77%26.58%
Net Profit8.1711.679.867.3510.026.967.147.317.5110.6914.7310.159.05
EPS in Rs0.310.440.340.250.350.240.250.260.240.340.460.320.29

Salasar Techno Engineering Ltd Quarterly Chart

Salasar Techno Engineering Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1082132923303103844956555265977191,0051,073
Expenses112196269302281346441582474540650913970
Operating Profit-41723282939547352576992102
OPM %-4%8%8%8%9%10%11%11%10%10%10%9%10%
Other Income1700-20111210222
Interest681110978162118223236
Depreciation1226334556789
Profit before tax671010172943532844425460
Tax %27%31%41%38%36%35%31%38%20%32%26%26%
Net Profit5566111930332230314045
EPS in Rs0.480.510.600.631.110.941.111.250.841.041.101.271.41
Dividend Payout %0%0%0%0%0%0%4%10%12%5%9%8%

Salasar Techno Engineering Ltd Profit & Loss Yearly Chart

Salasar Techno Engineering Ltd 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:64%
3 Years:119%
1 Year:292%
Return on Equity
10 Years:14%
5 Years:13%
3 Years:12%
Last Year:12%

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

Salasar Techno Engineering Ltd 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

Salasar Techno Engineering Ltd 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%

Salasar Techno Engineering Ltd Financial Efficiency Indicators Chart

Salasar Techno Engineering Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters74.94%69.70%69.70%69.70%69.70%69.70%63.07%63.07%63.07%63.07%63.07%63.07%
FIIs0.00%0.02%0.00%0.00%0.55%0.93%12.18%9.40%9.03%9.04%9.00%8.85%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.00%0.00%0.00%
Public25.06%30.29%30.30%30.30%29.75%29.38%24.74%27.51%27.86%27.87%27.92%28.07%
No. of Shareholders5,68811,54520,57318,95722,36524,68228,57530,97231,95132,78941,04676,802

Salasar Techno Engineering Ltd Shareholding Pattern Chart

No. of Salasar Techno Engineering Ltd Shareholders

This stock is not held by any mutual fund

Salasar Techno Engineering Ltd ROCE Trend

Salasar Techno Engineering Ltd EPS Trend

Salasar Techno Engineering Ltd 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

Salasar Techno Engineering Ltd Profitability Ratios (%)

Salasar Techno Engineering Ltd Liquidity Ratios

Salasar Techno Engineering Ltd Liquidity Ratios (%)

Salasar Techno Engineering Ltd Interest Coverage Ratios (X)

Salasar Techno Engineering Ltd Valuation Ratios

Fair Value / Intrinsic Value of Salasar Techno Engineering Ltd

Fair Value: ₹25.78

The stock is overvalued by 2.71% compared to the current price ₹26.5

*Investments are subject to market risks

Strength and Weakness of Salasar Techno Engineering Ltd

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 (31.00 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 31.43 and average Dividend Yield of 9.53%.
  2. The stock has a high average Working Capital Days of 145.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 181.92, which may not be favorable.

Should I Buy Salasar Techno Engineering Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding 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: 15.07%)
      • 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. 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.
    4. 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.
    5. ✗ Stock P/E: 77.0 (Industry average Stock P/E: 6.46)
      • 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.
    6. ✓ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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