Salasar Techno Engineering Ltd Valuation Shifts Amid Market Pressure

Valuation Metrics and Recent Changes

As of 17 Feb 2026, Salasar Techno’s P/E ratio stands at 45.43, a figure that, while elevated, reflects an improvement in valuation grade from very attractive to attractive. This suggests that the stock’s price, relative to its earnings, has become more reasonable compared to its own historical valuation band. The price-to-book value ratio is currently 1.73, indicating that the market values the company at nearly twice its book value, a level that is generally considered moderate within the industrial manufacturing sector.

Other valuation multiples include an EV to EBIT of 16.85 and EV to EBITDA of 13.62, which are in line with industry norms but slightly higher than some peers, signalling a premium valuation on operational earnings. The EV to capital employed ratio is 1.53, and EV to sales is 1.11, both suggesting a balanced valuation relative to the company’s asset base and revenue generation.

Peer Comparison Highlights

When compared to its peer group, Salasar Techno’s valuation metrics present a mixed picture. For instance, Bharat Wire, another industrial manufacturing player, trades at a significantly lower P/E of 15.7 and EV to EBITDA of 9.4, with an ‘Attractive’ valuation grade. Conversely, companies like Mamata Machinery and Diffusion Engineering are classified as ‘Expensive’ with P/E ratios of 24.79 and 22.66 respectively, and EV to EBITDA multiples exceeding 18. This positions Salasar Techno in a relatively higher valuation tier, albeit with a more favourable grade than some peers.

Notably, some companies such as Walchand Industries and Electrotherm (India) are marked as ‘Risky’ due to loss-making operations or volatile earnings, which contrasts with Salasar Techno’s stable, though modest, profitability metrics.

Financial Performance and Quality Indicators

Salasar Techno’s return on capital employed (ROCE) is 9.86%, while return on equity (ROE) is 4.63%. These figures indicate moderate efficiency in generating returns from capital and shareholder equity, but they fall short of the levels typically favoured by growth-oriented investors. The company’s PEG ratio is reported as 0.00, which may reflect either a lack of earnings growth or data unavailability, signalling caution for those relying on growth-adjusted valuation metrics.

Dividend yield data is not available, which may be a consideration for income-focused investors. The company’s market capitalisation grade is 4, indicating a smaller market cap relative to larger industrial peers, which can influence liquidity and volatility.

Stock Price Movement and Market Context

Salasar Techno’s stock price closed at ₹8.05 on 17 Feb 2026, down 4.96% from the previous close of ₹8.47. The 52-week high and low stand at ₹11.53 and ₹6.89 respectively, showing a wide trading range over the past year. Intraday volatility was evident with a high of ₹8.29 and a low of ₹7.86.

When analysing returns relative to the benchmark Sensex, Salasar Techno has underperformed significantly. Over the past week, the stock declined by 8.31% compared to the Sensex’s modest 0.94% drop. Year-to-date, the stock is down 8.94%, while the Sensex has fallen 2.28%. Over the last year, the divergence is starker with Salasar Techno losing 21.77% against a 9.66% gain in the Sensex. Even over three years, the stock’s return of -10.65% contrasts with the Sensex’s robust 35.81% growth. However, the company’s five-year return of 123.64% notably outpaces the Sensex’s 59.83%, reflecting strong longer-term performance despite recent weakness.

Mojo Score and Grade Downgrade

Despite the improved valuation grade, Salasar Techno’s overall Mojo Score remains low at 28.0, with a recent downgrade from Hold to Strong Sell on 16 Feb 2026. This downgrade reflects concerns over the company’s financial health, earnings quality, and market momentum. The downgrade signals caution for investors, suggesting that while the stock may appear more attractively priced on valuation metrics, underlying fundamentals and risk factors warrant careful consideration.

Valuation Attractiveness in Context

The shift from very attractive to attractive valuation grade indicates a relative improvement in price levels, but the P/E ratio of 45.43 remains high compared to many peers, implying that investors are still paying a premium for earnings. The P/BV ratio of 1.73 is moderate, suggesting that the market values the company’s net assets reasonably but not excessively.

In comparison, Bharat Wire’s P/E of 15.7 and EV to EBITDA of 9.4 highlight a more conservative valuation approach by the market, while companies like Mamata Machinery and Gala Precision Engineering trade at lower P/E multiples but are classified as expensive due to other factors such as earnings volatility or growth prospects.

Investment Implications and Outlook

Investors should weigh the improved valuation attractiveness against the company’s downgraded Mojo Grade and modest profitability metrics. The relatively high P/E ratio suggests expectations of future growth, but the absence of a PEG ratio and low ROE may temper enthusiasm. The stock’s recent underperformance relative to the Sensex and peers further underscores the need for caution.

Given the mixed signals, Salasar Techno may appeal to value investors seeking a turnaround opportunity at a more reasonable price, but it remains a speculative choice given the current Strong Sell rating and financial uncertainties.

Conclusion

Salasar Techno Engineering Ltd’s recent valuation shift to an attractive grade offers a nuanced opportunity for investors. While the stock’s price multiples have become more reasonable relative to its own history and some peers, the company’s overall financial health and market sentiment remain challenged. The downgrade to a Strong Sell Mojo Grade highlights significant risks that investors must consider alongside valuation metrics.

For those willing to navigate the complexities of the industrial manufacturing sector, Salasar Techno presents a case study in balancing valuation appeal against fundamental caution. Monitoring future earnings reports, sector trends, and peer performance will be critical to reassessing the stock’s investment merit in the coming quarters.

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