Why is Salasar Techno Engineering Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.15 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.15 times
- The company has been able to generate a Return on Equity (avg) of 9.43% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate 12.68% of over the last 5 years
3
Flat results in Dec 24
- PBT LESS OI(Q) At Rs 15.54 cr has Fallen at -31.45%
- PAT(Q) At Rs 12.06 cr has Fallen at -28.0%
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.17 times
4
Stock is technically in a Mildly Bearish range
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
5
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -1.55% over the previous quarter and currently hold 53.4% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Engineering - Industrial Equipments)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Salasar Techno for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Salasar Techno
-57.96%
-1.06
54.97%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
16.84%
EBIT Growth (5y)
12.68%
EBIT to Interest (avg)
2.58
Debt to EBITDA (avg)
3.31
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.36
Tax Ratio
25.29%
Dividend Payout Ratio
9.09%
Pledged Shares
4.34%
Institutional Holding
5.71%
ROCE (avg)
12.17%
ROE (avg)
9.43%
Valuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
34
Price to Book Value
2.21
EV to EBIT
17.28
EV to EBITDA
15.57
EV to Capital Employed
1.81
EV to Sales
1.44
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
11.06%
ROE (Latest)
7.65%
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Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
5What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 3.86 times
DEBT-EQUITY RATIO(HY)
Lowest at 0.53 times
NET SALES(Q)
Highest at Rs 375.18 cr
-9What is not working for the Company
PBT LESS OI(Q)
At Rs 15.54 cr has Fallen at -31.45%
PAT(Q)
At Rs 12.06 cr has Fallen at -28.0%
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.17 times
INTEREST(Q)
Highest at Rs 13.08 cr
Loading Valuation Snapshot...
Here's what is working for Salasar Techno
Debtors Turnover Ratio- Half Yearly
Highest at 3.86 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Net Sales - Quarterly
Highest at Rs 375.18 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 375.18 cr has Grown at 23.46%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.53 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Salasar Techno
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 15.54 cr has Fallen at -31.45%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 12.06 cr has Fallen at -28.0%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Inventory Turnover Ratio- Half Yearly
Lowest at 3.17 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Interest - Quarterly
Highest at Rs 13.08 cr
in the last five quarters and Increased by 10.10 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)