Why is Salzer Electronics Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.64 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.64 times
- The company has been able to generate a Return on Equity (avg) of 9.32% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate 15.67% of over the last 5 years
3
Negative results in Jun 26
- PBT LESS OI(Q) At Rs 12.28 cr has Fallen at -47.74%
- PAT(9M) At Rs 30.70 cr has Grown at -27.66%
- ROCE(HY) Lowest at 10.75%
4
Despite the size of the company, domestic mutual funds hold only 0.02% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or 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 Other Electrical Equipment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Salzer Electron. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Salzer Electron.
-31.66%
-0.65
48.64%
Sensex
-3.86%
-0.29
13.47%
Quality key factors
Factor
Value
Sales Growth (5y)
21.66%
EBIT Growth (5y)
15.67%
EBIT to Interest (avg)
2.71
Debt to EBITDA (avg)
3.16
Net Debt to Equity (avg)
0.87
Sales to Capital Employed (avg)
1.47
Tax Ratio
23.97%
Dividend Payout Ratio
8.35%
Pledged Shares
17.20%
Institutional Holding
4.62%
ROCE (avg)
11.15%
ROE (avg)
9.32%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
43
Price to Book Value
1.70
EV to EBIT
14.02
EV to EBITDA
11.13
EV to Capital Employed
1.37
EV to Sales
0.84
PEG Ratio
NA
Dividend Yield
0.44%
ROCE (Latest)
10.82%
ROE (Latest)
8.93%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Bullish
Technical Movement
5What is working for the Company
NET SALES(9M)
At Rs 1,396.36 cr has Grown at 20.55%
DEBTORS TURNOVER RATIO(HY)
Highest at 3.95 times
-17What is not working for the Company
PBT LESS OI(Q)
At Rs 12.28 cr has Fallen at -47.74%
PAT(9M)
At Rs 30.70 cr has Grown at -27.66%
ROCE(HY)
Lowest at 10.75%
DEBT-EQUITY RATIO(HY)
Highest at 0.90 times
EPS(Q)
Lowest at Rs 4.55
Loading Valuation Snapshot...
Here's what is working for Salzer Electron.
Net Sales - Quarterly
Highest at Rs 498.02 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 3.95 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Salzer Electron.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 12.28 cr has Fallen at -47.74%
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 8.04 cr has Fallen at -53.5%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
Lowest at Rs 8.04 cr. and Fallen
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 4.55
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Highest at 0.90 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






