Intraday Performance and Market Context
On 16 Dec 2025, SAL Automotive's stock price touched an intraday low of Rs.202, representing an 11.4% decline from previous levels. This movement was accompanied by a day change of -5.26%, underperforming the Auto Components & Equipments sector by 7.84%. The stock exhibited high volatility, with an intraday volatility of 5.61% calculated from the weighted average price. Notably, SAL Automotive is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
Meanwhile, the broader market, represented by the Sensex, also faced pressure. The Sensex opened 187.75 points lower and closed down by 248.22 points at 84,777.39, a 0.51% decline. Despite this, the Sensex remains 1.63% below its 52-week high of 86,159.02 and continues to trade above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish trend for the benchmark index.
One-Year Performance Comparison
Over the past year, SAL Automotive's stock has recorded a negative return of 34.55%, contrasting sharply with the Sensex's positive return of 3.71% during the same period. This divergence highlights the stock's relative underperformance within the broader market context. The stock's 52-week high was Rs.346.65, underscoring the extent of the recent decline to the current low.
Financial Metrics and Debt Position
One of the key factors influencing SAL Automotive's market performance is its financial structure. The company has a Debt to EBITDA ratio of 9.30 times, indicating a substantial level of debt relative to earnings before interest, tax, depreciation, and amortisation. This ratio suggests a limited capacity to service debt obligations comfortably, which may weigh on investor sentiment.
Profitability metrics also provide insight into the company's financial health. SAL Automotive has generated an average Return on Equity (ROE) of 9.64%, reflecting modest profitability relative to shareholders' funds. This level of ROE indicates that the company is generating returns on equity at a moderate pace, which may be viewed as less compelling compared to higher-performing peers.
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Sales Growth and Quarterly Results
Despite the stock's recent price challenges, SAL Automotive has demonstrated healthy long-term growth in net sales, with an annual growth rate of 40.31%. This indicates that the company has been expanding its revenue base at a robust pace over recent years.
Quarterly results for September 2025 show positive trends in profitability. Profit Before Tax excluding other income (PBT LESS OI) stood at Rs.2.30 crore, reflecting a growth rate of 78.6% compared to the previous four-quarter average. Similarly, Profit After Tax (PAT) for the quarter was Rs.1.86 crore, up 56.0% relative to the prior four-quarter average. Net sales for the quarter reached Rs.107.84 crore, marking the highest quarterly sales figure recorded by the company.
Valuation and Capital Efficiency
SAL Automotive's Return on Capital Employed (ROCE) is reported at 11%, which suggests a reasonable level of efficiency in generating returns from capital invested in the business. The company’s Enterprise Value to Capital Employed ratio stands at 1.9, indicating an attractive valuation relative to the capital base. This valuation is lower compared to the average historical valuations of its peers, suggesting the stock is trading at a discount within its sector.
Over the past year, while the stock price has declined by 34.55%, the company’s profits have shown a marginal increase of 3.7%. The Price/Earnings to Growth (PEG) ratio is 5.9, reflecting the relationship between valuation and earnings growth.
Shareholding and Market Capitalisation
The majority shareholding in SAL Automotive is held by promoters, indicating a concentrated ownership structure. The company is classified as a micro-cap within the Auto Components & Equipments sector, with a market capitalisation grade of 4.
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Summary of Current Situation
SAL Automotive's stock has experienced a significant decline to its 52-week low of Rs.202, reflecting a combination of market pressures, sector underperformance, and financial metrics that indicate challenges in debt servicing and moderate profitability. The stock's trading below all major moving averages underscores the prevailing downward trend. However, the company’s steady sales growth and recent quarterly profit improvements provide a broader context to its financial position.
While the broader market, as represented by the Sensex, maintains a generally bullish stance, SAL Automotive's relative performance has lagged behind, with a notable divergence in returns over the past year. Investors and market participants may continue to monitor the stock’s price movements in relation to its financial fundamentals and sector dynamics.
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