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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Salzer Electronics Ltd

About the Company - Salzer Electronics Ltd

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

Salzer Electronics Ltd. Share Price Update

Share PriceValue
Today₹498.80
Previous Day₹472.50

Basic Stock Data of Salzer Electronics Ltd

Market Cap 1,281 Cr.
Current Price 737
High / Low802/236
Stock P/E32.0
Book Value 245
Dividend Yield0.30 %
ROCE12.0 %
ROE9.70 %
Face Value 10.0

Data Source: screener.in

Competitors of Salzer Electronics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Swelect Energy Systems Ltd 1,873 Cr. 1,2351,250/26370.1 5340.10 %4.41 %0.21 % 10.0
Advance Metering Technology Ltd 63.4 Cr. 39.564.6/16.1 63.40.00 %4.57 %6.62 % 5.00
Schneider Electric Infrastructure Ltd 15,039 Cr. 629650/14669.1 9.230.00 %27.6 %1,195 % 2.00
Marine Electricals (India) Ltd 1,401 Cr. 108123/32.566.4 15.10.00 %16.0 %11.0 % 2.00
Servotech Power Systems Ltd 2,026 Cr. 95.2109/16.5145 4.150.04 %17.7 %16.8 % 1.00
Industry Average4,080.48 Cr421.3470.12125.180.03%14.06%245.93%4.00

Salzer Electronics Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales170190149195212228233245240295282274262
Expenses153174134176194215213220216272257248233
Operating Profit17161518181320242423252529
OPM %10%9%10%9%8%6%8%10%10%8%9%9%11%
Other Income0101101-000101
Interest5555556678889
Depreciation4444444444455
Profit before tax8861010411141312131317
Tax %23%15%33%29%25%8%21%36%28%24%28%25%26%
Net Profit674774991099912
EPS in Rs4.014.372.474.674.542.405.495.606.055.545.685.627.15

Salzer Electronics Ltd Quarterly Chart

Salzer Electronics Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2232292452833613854435605676067841,0131,091
Expenses194200214248318340389496502544720922994
Operating Profit29283035434553646562649197
OPM %13%12%12%13%12%12%12%11%12%10%8%9%9%
Other Income1111353112212
Interest12121212131515202121202630
Depreciation89878911121416161617
Profit before tax1091217242631323027305051
Tax %19%25%28%29%30%34%35%26%13%23%25%28%
Net Profit87812171720242621223637
EPS in Rs7.966.878.2111.6512.5012.0913.3514.9916.5112.9314.0722.4722.89
Dividend Payout %15%17%18%13%13%13%12%11%0%12%13%10%

Salzer Electronics Ltd Profit & Loss Yearly Chart

Salzer Electronics Ltd Growth

Compounded Sales Growth
10 Years:16%
5 Years:18%
3 Years:21%
TTM:18%
Compounded Profit Growth
10 Years:18%
5 Years:12%
3 Years:11%
TTM:28%
Stock Price CAGR
10 Years:28%
5 Years:43%
3 Years:81%
1 Year:180%
Return on Equity
10 Years:8%
5 Years:8%
3 Years:8%
Last Year:10%

Salzer Electronics Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital10101010141415161616161617
Reserves74808698182218255271293315335374410
Preference Capital000000100000
Borrowings59728397109126146148178204252277292
Other Liabilities695953707196122131119139138209190
Total Liabilities213221232275375454537566607674742876908
Fixed Assets62666878102139166183207211214231237
CWIP0006896631112
Investments6666185342021212223
Other Assets145149158186248301361373378441506623646
Total Assets213221232275375454537566607674742876908

Salzer Electronics Ltd Reserves and Borrowings Chart

Salzer Electronics Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 27101426-1514523614-1423
Cash from Investing Activity -14-12-9-22-45-20-41-28-50-17-18-32
Cash from Financing Activity -90-40641226-19942914
Net Cash Flow4-2145-7-104-52-25

Salzer Electronics Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days9797861001011119795921089799
Inventory Days11412712512395125161132145145141135
Days Payable525650494738425047484755
Cash Conversion Cycle158168162174149198216178190205192180
Working Capital Days106134140138140158171140152166161148
ROCE %16%14%14%15%14%12%12%12%11%9%9%12%

Salzer Electronics Ltd Financial Efficiency Indicators Chart

Salzer Electronics Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters35.83%32.63%32.38%32.34%32.34%32.34%32.34%32.34%33.18%33.94%35.13%37.21%
FIIs6.84%6.84%6.83%7.36%6.56%6.42%6.02%5.77%5.38%5.78%6.06%3.93%
DIIs2.67%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.18%0.14%0.14%
Public54.66%60.53%60.79%60.30%61.10%61.24%61.63%61.87%61.46%60.11%58.69%58.73%
No. of Shareholders19,53222,15523,60523,22925,88625,19723,93923,64324,02224,26425,13428,277

Salzer Electronics Ltd Shareholding Pattern Chart

No. of Salzer Electronics Ltd Shareholders

This stock is not held by any mutual fund

Salzer Electronics Ltd ROCE Trend

Salzer Electronics Ltd EPS Trend

Salzer Electronics Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.00
Basic EPS (Rs.)24.2114.1412.8417.27
Diluted EPS (Rs.)21.9014.1412.8416.96
Cash EPS (Rs.)34.7425.3623.3926.38
Book Value[Excl.RevalReserv]/Share (Rs.)255.37224.23210.53196.42
Book Value[Incl.RevalReserv]/Share (Rs.)255.37224.23210.53196.42
Revenue From Operations / Share (Rs.)640.91502.76391.51365.62
PBDIT / Share (Rs.)60.3142.9940.8042.59
PBIT / Share (Rs.)50.0532.7730.7933.36
PBT / Share (Rs.)33.9220.3417.5219.96
Net Profit / Share (Rs.)24.4815.1413.3817.15
NP After MI And SOA / Share (Rs.)23.9214.1412.8416.96
PBDIT Margin (%)9.418.5510.4211.64
PBIT Margin (%)7.806.517.869.12
PBT Margin (%)5.294.044.475.45
Net Profit Margin (%)3.813.013.414.69
NP After MI And SOA Margin (%)3.732.813.274.63
Return on Networth / Equity (%)9.496.386.178.74
Return on Capital Employeed (%)18.0713.4013.2315.18
Return On Assets (%)4.323.002.994.39
Long Term Debt / Equity (X)0.010.030.040.05
Total Debt / Equity (X)0.660.700.600.56
Asset Turnover Ratio (%)1.261.100.930.00
Current Ratio (X)1.401.381.381.39
Quick Ratio (X)0.790.740.790.78
Inventory Turnover Ratio (X)3.303.152.860.00
Dividend Payout Ratio (NP) (%)7.4311.310.0011.37
Dividend Payout Ratio (CP) (%)5.206.560.007.36
Earning Retention Ratio (%)92.5788.690.0088.63
Cash Earning Retention Ratio (%)94.8093.440.0092.64
Interest Coverage Ratio (X)3.743.463.063.21
Interest Coverage Ratio (Post Tax) (X)2.522.221.992.30
Enterprise Value (Cr.)670.70534.39384.82263.56
EV / Net Operating Revenue (X)0.640.660.610.45
EV / EBITDA (X)6.877.785.903.87
MarketCap / Net Operating Revenue (X)0.390.360.310.16
Retention Ratios (%)92.5688.680.0088.62
Price / BV (X)1.010.830.580.31
Price / Net Operating Revenue (X)0.390.360.310.16
EarningsYield0.090.070.100.27

Salzer Electronics Ltd Profitability Ratios (%)

Salzer Electronics Ltd Liquidity Ratios

Salzer Electronics Ltd Liquidity Ratios (%)

Salzer Electronics Ltd Interest Coverage Ratios (X)

Salzer Electronics Ltd Valuation Ratios

Fair Value / Intrinsic Value of Salzer Electronics Ltd

Fair Value: ₹762.76

The stock is undervalued by 3.50% compared to the current price ₹737

*Investments are subject to market risks

Strength and Weakness of Salzer Electronics Ltd

StrengthWeakness
  1. The company has higher reserves (230.08 cr) compared to borrowings (0.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (360.62 cr) and profit (26.85 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 36.74 and average Dividend Yield of 7.82%.
  2. The stock has a low average ROCE of 12.50%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 146.17, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 180.83, which may not be favorable.

Should I Buy Salzer Electronics Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Salzer Electronics Ltd:
    1. Net Profit Margin: 3.81%
      • 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: 18.07% (Industry Average ROCE: 18.18%)
      • 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): 2.52
      • 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: 0.79
      • 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: 32.3 (Industry average Stock P/E: 158)
      • 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: 0.66
      • 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 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