BSE:539353

Stock Analysis Report

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Executive Summary

Sal Automotive Limited manufactures and sells automotive components in India.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has Sal Automotive's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 539353's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.9%

539353

0.6%

IN Auto Components

0.1%

IN Market


1 Year Return

-32.4%

539353

-11.8%

IN Auto Components

-6.1%

IN Market

Return vs Industry: 539353 underperformed the Indian Auto Components industry which returned -11.8% over the past year.

Return vs Market: 539353 underperformed the Indian Market which returned -6.1% over the past year.


Shareholder returns

539353IndustryMarket
7 Day-4.9%0.6%0.1%
30 Day7.0%8.7%7.6%
90 Day38.7%33.3%19.4%
1 Year-30.5%-32.4%-10.4%-11.8%-4.3%-6.1%
3 Year179.7%149.1%-32.9%-34.9%-2.9%-7.5%
5 Yearn/a-7.0%-10.9%21.9%12.7%

Price Volatility Vs. Market

How volatile is Sal Automotive's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sal Automotive undervalued compared to its fair value and its price relative to the market?

1x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 539353 (₹131.75) is trading above our estimate of fair value (₹19.8)

Significantly Below Fair Value: 539353 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 539353 is unprofitable, so we can't compare its PE Ratio to the IN Auto Components industry average.

PE vs Market: 539353 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 539353's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 539353 is good value based on its PB Ratio (1x) compared to the IN Auto Components industry average (1.1x).


Next Steps

Future Growth

How is Sal Automotive forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.3%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sal Automotive has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Sal Automotive performed over the past 5 years?

-5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539353 is currently unprofitable.

Growing Profit Margin: 539353 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 539353 is unprofitable, and losses have increased over the past 5 years at a rate of -5.3% per year.

Accelerating Growth: Unable to compare 539353's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 539353 is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-29.8%).


Return on Equity

High ROE: 539353 has a negative Return on Equity (-3.41%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sal Automotive's financial position?


Financial Position Analysis

Short Term Liabilities: 539353's short term assets (₹408.8M) exceed its short term liabilities (₹296.1M).

Long Term Liabilities: 539353's short term assets (₹408.8M) exceed its long term liabilities (₹16.4M).


Debt to Equity History and Analysis

Debt Level: 539353's debt to equity ratio (15.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 539353's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 539353's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 539353's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Sal Automotive current dividend yield, its reliability and sustainability?

2.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 539353's dividend (2.66%) is higher than the bottom 25% of dividend payers in the Indian market (0.68%).

High Dividend: 539353's dividend (2.66%) is low compared to the top 25% of dividend payers in the Indian market (2.75%).


Stability and Growth of Payments

Stable Dividend: 539353 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 539353 has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: 539353 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average board tenure


CEO

Rama Sharma (57yo)

4.42yrs

Tenure

₹1,200,000

Compensation

Mr. Rama Kant Sharma has been Managing Director of Sal Automotive Limited (formerly known as Swaraj Automotives Limited) since February 4, 2016 and has been its Executive Director since February 3, 2016. 


CEO Compensation Analysis

Compensation vs Market: Rama's total compensation ($USD15.97K) is below average for companies of similar size in the Indian market ($USD49.95K).

Compensation vs Earnings: Rama's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Rama Sharma
MD & Additional Director4.42yrs₹1.20mno data
Jamil Ahmad
Non-Executive Non-Independent Director4.42yrsno datano data
Rajiv Sharma
Non-Executive Independent Director4.42yrs₹270.00kno data
Namrata Jain
Non-Executive Non-Independent Director4.42yrsno datano data

4.4yrs

Average Tenure

56yo

Average Age

Experienced Board: 539353's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sal Automotive Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sal Automotive Limited
  • Ticker: 539353
  • Exchange: BSE
  • Founded: 1974
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: ₹315.779m
  • Shares outstanding: 2.40m
  • Website: https://salautomotive.in

Number of Employees


Location

  • Sal Automotive Limited
  • C-127, Satguru Infotech
  • IV Floor
  • Mohali
  • Punjab
  • 160071
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539353BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2015

Biography

Sal Automotive Limited manufactures and sells automotive components in India. It operates in two segments, Automobile Components and Agriculture Implements. It offers seats for tractors, LCV buses, and railway coaches; seating mechanism systems, including recliners, adjustors/sliders, and other components; and agricultural implements, such as rotavators and tractor trolleys. The company also provides seat frames. It supplies its products to the manufacturers of passenger and commercial vehicles, and tractors. The company was formerly known as Swaraj Automotives Limited and changed its name to Sal Automotive Limited in July 2019. The company was incorporated in 1974 and is based in Mohali, India. Sal Automotive Limited is a subsidiary of B4s Solutions Private Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 12:47
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.