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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 517059 | NSE: SALZERELEC

Fundamental Analysis of Salzer Electronics Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:40 pm

Market Cap 1,576 Cr.
Current Price 906
High / Low966/315
Stock P/E36.5
Book Value 268
Dividend Yield0.28 %
ROCE12.9 %
ROE10.1 %
Face Value 10.0
PEG Ratio4.28

Data Source: screener.in

Competitors of Salzer Electronics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Epic Energy Ltd 15.8 Cr. 22.022.0/5.7544.0 9.350.00 %5.03 %5.49 % 10.0
Edvenswa Enterprises Ltd 149 Cr. 78.987.5/36.020.2 27.80.00 %23.8 %15.4 % 10.0
Cospower Engineering Ltd 45.2 Cr. 301389/200410 48.10.00 %8.39 %1.55 % 10.0
Continental Controls Ltd 7.74 Cr. 12.618.5/3.54 3.350.00 %8.94 %14.0 % 10.0
Artemis Electricals & Projects Ltd 753 Cr. 30.072.4/13.5184 3.160.00 %6.62 %5.28 % 1.00
Industry Average19,508.63 Cr669.26151.5961.470.05%15.72%18.68%5.59

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: July 12, 2024, 3:24 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 25, 2024, 10:31 am

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%

Growth

Compounded Sales Growth
10 Years:17%
5 Years:15%
3 Years:23%
TTM:12%
Compounded Profit Growth
10 Years:18%
5 Years:13%
3 Years:28%
TTM:20%
Stock Price CAGR
10 Years:23%
5 Years:52%
3 Years:74%
1 Year:165%
Return on Equity
10 Years:9%
5 Years:8%
3 Years:9%
Last Year:10%

Last Updated: July 25, 2024, 6:19 am

Balance Sheet

Last Updated: July 10, 2024, 9:29 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital101010141415161616161617
Reserves808698182218255271293315335374449
Preference Capital00000100000
Borrowings728397109126146148178204252277308
Other Liabilities5953707196122131119139138209196
Total Liabilities221232275375454537566607674742876970
Fixed Assets666878102139166183207211214231254
CWIP006896631112
Investments666185342021212225
Other Assets149158186248301361373378441506623689
Total Assets221232275375454537566607674742876970

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 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%

Financial Efficiency Indicators Chart

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%3.70%
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%58.95%
No. of Shareholders19,53222,15523,60523,22925,88625,19723,93923,64324,02224,26425,13428,291

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: 990.75

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: 9.35% compared to the current price 906

Intrinsic Value: 1,075.18

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: 18.67% compared to the current price 906

Last 5 Year EPS CAGR: 8.52%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (246.33 cr) compared to borrowings (166.67 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 12.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 146.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 180.83, 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: 15.72%)
      • 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: 18.68%)
      • 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: 36.5 (Industry average Stock P/E: 151.32)
      • 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

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 fair value of Salzer Electronics Ltd?

The latest fair value of Salzer Electronics Ltd is ₹990.75.

What is the Market Cap of Salzer Electronics Ltd?

The Market Cap of Salzer Electronics Ltd is 1,576 Cr..

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

The current stock price of Salzer Electronics Ltd as on 25 July 2024 is 906.

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 966/315.

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

The Stock P/E of Salzer Electronics Ltd is 36.5.

What is the Book Value of Salzer Electronics Ltd?

The Book Value of Salzer Electronics Ltd is 268.

What is the Dividend Yield of Salzer Electronics Ltd?

The Dividend Yield of Salzer Electronics Ltd is 0.28 %.

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 10.1 %.

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