Why is SAL Automotive Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 9.30 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 9.30 times
- The company has been able to generate a Return on Equity (avg) of 9.64% signifying low profitability per unit of shareholders funds
2
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -23.87% returns
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 Auto Components & Equipments)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is SAL Automotive for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
SAL Automotive
-23.87%
-0.54
44.10%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
40.31%
EBIT Growth (5y)
33.99%
EBIT to Interest (avg)
2.25
Debt to EBITDA (avg)
4.00
Net Debt to Equity (avg)
0.55
Sales to Capital Employed (avg)
4.03
Tax Ratio
31.34%
Dividend Payout Ratio
21.16%
Pledged Shares
0
Institutional Holding
4.44%
ROCE (avg)
7.28%
ROE (avg)
9.64%
Valuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
39
Price to Book Value
2.45
EV to EBIT
17.67
EV to EBITDA
11.29
EV to Capital Employed
1.94
EV to Sales
0.34
PEG Ratio
5.86
Dividend Yield
1.10%
ROCE (Latest)
10.96%
ROE (Latest)
11.36%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
Technical Movement
9What is working for the Company
PBT LESS OI(Q)
At Rs 2.30 cr has Grown at 78.6% (vs previous 4Q average
PAT(Q)
At Rs 1.86 cr has Grown at 56.0% (vs previous 4Q average
NET SALES(Q)
Highest at Rs 107.84 cr
PBDIT(Q)
Highest at Rs 3.73 cr.
EPS(Q)
Highest at Rs 3.88
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.84 times
Loading Valuation Snapshot...
Here's what is working for SAL Automotive
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 2.30 cr has Grown at 78.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1.29 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 1.86 cr has Grown at 56.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 1.19 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 107.84 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 3.73 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 2.30 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 1.86 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 3.88
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for SAL Automotive
Debtors Turnover Ratio- Half Yearly
Lowest at 6.84 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






