Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 517059 | NSE: SALZERELEC

Salzer Electronics Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:08 pm

Market Cap 1,789 Cr.
Current Price 1,012
High / Low1,199/375
Stock P/E28.0
Book Value 288
Dividend Yield0.25 %
ROCE12.9 %
ROE10.0 %
Face Value 10.0
PEG Ratio3.29

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Salzer Electronics Ltd

Competitors of Salzer Electronics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Evans Electric Ltd 82.6 Cr. 301504/16129.2 74.61.00 %36.4 %28.0 % 10.0
Epic Energy Ltd 78.1 Cr. 108108/5.97104 10.00.00 %5.03 %5.49 % 10.0
Edvenswa Enterprises Ltd 230 Cr. 62.699.8/42.426.1 25.50.00 %23.6 %15.4 % 10.0
Cospower Engineering Ltd 93.2 Cr. 622740/200104 49.80.00 %8.12 %1.54 % 10.0
Continental Controls Ltd 6.45 Cr. 10.518.5/5.80322 3.430.00 %7.82 %14.0 % 10.0
Industry Average17,129.11 Cr644.00134.8573.180.12%16.28%19.86%6.12

All Competitor Stocks of Salzer Electronics Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales190149195212228233245240295282274262318
Expenses174134176194215213220216272257248233287
Operating Profit16151818132024242325252931
OPM %9%10%9%8%6%8%10%10%8%9%9%11%10%
Other Income101101-0001010
Interest5555566788899
Depreciation4444444444555
Profit before tax86101041114131213131717
Tax %15%33%29%25%8%21%36%28%24%28%25%26%30%
Net Profit7477499109991212
EPS in Rs4.372.474.674.542.405.495.606.055.545.685.627.156.95

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2292452833613854435605676067841,0131,136
Expenses2002142483183403894965025447209221,025
Operating Profit2830354345536465626491110
OPM %12%12%13%12%12%12%11%12%10%8%9%10%
Other Income111353112212
Interest121212131515202121202634
Depreciation9878911121416161619
Profit before tax91217242631323027305059
Tax %25%28%29%30%34%35%26%13%23%25%28%27%
Net Profit7812171720242621223643
EPS in Rs6.878.2111.6512.5012.0913.3514.9916.5112.9314.0722.4724.85
Dividend Payout %17%18%13%13%13%12%11%0%12%13%10%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)14.29%50.00%41.67%0.00%17.65%20.00%8.33%-19.23%4.76%63.64%19.44%
Change in YoY Net Profit Growth (%)0.00%35.71%-8.33%-41.67%17.65%2.35%-11.67%-27.56%23.99%58.87%-44.19%

Salzer Electronics Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:15%
3 Years:23%
TTM:16%
Compounded Profit Growth
10 Years:18%
5 Years:12%
3 Years:28%
TTM:71%
Stock Price CAGR
10 Years:19%
5 Years:56%
3 Years:69%
1 Year:177%
Return on Equity
10 Years:9%
5 Years:8%
3 Years:9%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:44 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital10101014141516161616161718
Reserves808698182218255271293315335374447491
Borrowings728397109126146148178204252277308347
Other Liabilities5953707196121131119139138209198228
Total Liabilities2212322753754545375666076747428769701,083
Fixed Assets666878102139166183207211214231254268
CWIP0068966311123
Investments66618534202121222528
Other Assets149158186248301361373378441506623689784
Total Assets2212322753754545375666076747428769701,083

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +101426-1514523614-142319
Cash from Investing Activity +-12-9-22-45-20-41-28-50-17-18-32-44
Cash from Financing Activity +0-40641226-1994291416
Net Cash Flow-2145-7-104-52-25-9

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-44.00-53.00-62.00-66.00-81.00-93.00-84.00-113.00-142.00-188.00-186.00-198.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days97861001011119795921089799103
Inventory Days12712512395125161132145145141135122
Days Payable565049473842504748475542
Cash Conversion Cycle168162174149198216178190205192180183
Working Capital Days134140138140158171140152166161148162
ROCE %14%14%15%14%12%12%12%11%9%9%12%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters32.38%32.34%32.34%32.34%32.34%32.34%33.18%33.94%35.13%37.21%37.32%37.53%
FIIs6.83%7.36%6.56%6.42%6.02%5.77%5.38%5.78%6.06%3.70%3.20%2.81%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.18%0.14%0.14%0.12%0.11%
Public60.79%60.30%61.10%61.24%61.63%61.87%61.46%60.11%58.69%58.95%59.37%59.56%
No. of Shareholders23,60523,22925,88625,19723,93923,64324,02224,26425,13428,29135,03542,501

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)27.3824.2114.1412.8417.27
Diluted EPS (Rs.)25.9421.9014.1412.8416.96
Cash EPS (Rs.)38.6534.7425.3623.3926.38
Book Value[Excl.RevalReserv]/Share (Rs.)276.37255.37224.23210.53196.42
Book Value[Incl.RevalReserv]/Share (Rs.)276.37255.37224.23210.53196.42
Revenue From Operations / Share (Rs.)670.96640.91502.76391.51365.62
PBDIT / Share (Rs.)68.4260.3142.9940.8042.59
PBIT / Share (Rs.)56.8550.0532.7730.7933.36
PBT / Share (Rs.)37.2433.9220.3417.5219.96
Net Profit / Share (Rs.)27.0824.4815.1413.3817.15
NP After MI And SOA / Share (Rs.)26.3923.9214.1412.8416.96
PBDIT Margin (%)10.199.418.5510.4211.64
PBIT Margin (%)8.477.806.517.869.12
PBT Margin (%)5.545.294.044.475.45
Net Profit Margin (%)4.033.813.013.414.69
NP After MI And SOA Margin (%)3.933.732.813.274.63
Return on Networth / Equity (%)9.689.496.386.178.74
Return on Capital Employeed (%)18.8918.0713.4013.2315.18
Return On Assets (%)4.614.323.002.994.39
Long Term Debt / Equity (X)0.020.010.030.040.05
Total Debt / Equity (X)0.650.660.700.600.56
Asset Turnover Ratio (%)1.241.261.100.930.00
Current Ratio (X)1.501.401.381.381.39
Quick Ratio (X)0.870.790.740.790.78
Inventory Turnover Ratio (X)3.133.303.152.860.00
Dividend Payout Ratio (NP) (%)0.007.4311.310.0011.37
Dividend Payout Ratio (CP) (%)0.005.206.560.007.36
Earning Retention Ratio (%)0.0092.5788.690.0088.63
Cash Earning Retention Ratio (%)0.0094.8093.440.0092.64
Interest Coverage Ratio (X)3.493.743.463.063.21
Interest Coverage Ratio (Post Tax) (X)2.382.522.221.992.30
Enterprise Value (Cr.)1759.93670.70534.39384.82263.56
EV / Net Operating Revenue (X)1.510.640.660.610.45
EV / EBITDA (X)14.806.877.785.903.87
MarketCap / Net Operating Revenue (X)1.250.390.360.310.16
Retention Ratios (%)0.0092.5688.680.0088.62
Price / BV (X)3.081.010.830.580.31
Price / Net Operating Revenue (X)1.250.390.360.310.16
EarningsYield0.030.090.070.100.27

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Salzer Electronics Ltd as of November 25, 2024 is: 808.42

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.

As of November 25, 2024, Salzer Electronics Ltd is Overvalued by 20.12% compared to the current share price 1,012.00

Intrinsic Value of Salzer Electronics Ltd as of November 25, 2024 is: 877.31

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 25, 2024, Salzer Electronics Ltd is Overvalued by 13.31% compared to the current share price 1,012.00

Last 5 Year EPS CAGR: 8.52%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (265.00 cr) compared to borrowings (180.54 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (372.08 cr) and profit (28.92 cr) over the years.
  1. The stock has a low average ROCE of 12.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 150.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 182.92, 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 Salzer Electronics Ltd:
    1. Net Profit Margin: 4.03%
      • 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: 18.89% (Industry Average ROCE: 16.28%)
      • 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%: 9.68% (Industry Average ROE: 19.86%)
      • 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): 2.38
      • 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: 0.87
      • 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: 28 (Industry average Stock P/E: 134.85)
      • 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: 0.65
      • 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 - Qualitative Analysis

Salzer Electronics Ltd. is a Public Limited Listed company incorporated on 08/01/1985 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L03210TZ1985PLC001535 and registration number is 001535. Currently company belongs to the Industry of Electric Equipment - General. Company’s Total Operating Revenue is Rs. 783.63 Cr. and Equity Capital is Rs. 15.98 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Electric Equipment - GeneralSamichettipalayam (PO) Jothipuram (Via), Coimbatore Tamil Nadu 641047salzer@salzergroup.com
http://www.salzergroup.net
Management
NamePosition Held
Mr. Rangachary NChairman
Mr. Doraiswamy RManaging Director
Mr. Rajeshkumar DJoint Managing Director & CFO
Mr. Ramachandran PWhole Time Director
Mr. Jayabal NIndependent Director
Mr. Nirmal Kumar M ChandriaIndependent Director
Mr. Sankaran VIndependent Director
Mr. Vishnu DoraiswamyNon Exe.Non Ind.Director
Mr. Shah P KIndependent Director
Dr. Thilagam RajeshkumarNon Exe.Non Ind.Director
Mrs. Priya BhansaliIndependent Director
Mr. Sharat Chandra BhargavaIndependent Director

FAQ

What is the latest intrinsic value of Salzer Electronics Ltd?

The latest intrinsic value of Salzer Electronics Ltd as on 25 November 2024 is ₹808.42, which is 20.12% lower than the current market price of ₹1,012.00.

What is the Market Cap of Salzer Electronics Ltd?

The Market Cap of Salzer Electronics Ltd is 1,789 Cr..

What is the current Stock Price of Salzer Electronics Ltd as on 25 November 2024?

The current stock price of Salzer Electronics Ltd as on 25 November 2024 is 1,012.

What is the High / Low of Salzer Electronics Ltd stocks in FY 2024?

In FY 2024, the High / Low of Salzer Electronics Ltd stocks is 1,199/375.

What is the Stock P/E of Salzer Electronics Ltd?

The Stock P/E of Salzer Electronics Ltd is 28.0.

What is the Book Value of Salzer Electronics Ltd?

The Book Value of Salzer Electronics Ltd is 288.

What is the Dividend Yield of Salzer Electronics Ltd?

The Dividend Yield of Salzer Electronics Ltd is 0.25 %.

What is the ROCE of Salzer Electronics Ltd?

The ROCE of Salzer Electronics Ltd is 12.9 %.

What is the ROE of Salzer Electronics Ltd?

The ROE of Salzer Electronics Ltd is 10.0 %.

What is the Face Value of Salzer Electronics Ltd?

The Face Value of Salzer Electronics Ltd is 10.0.

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 Salzer Electronics 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