BSE:540642

Stock Analysis Report

Salasar Techno Engineering

Executive Summary

Salasar Techno Engineering Limited manufactures galvanized steel structures in India and internationally.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Salasar Techno Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540642 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.5%

540642

-1.3%

IN Construction

-0.08%

IN Market


1 Year Return

-46.5%

540642

-1.9%

IN Construction

9.5%

IN Market

Return vs Industry: 540642 underperformed the Indian Construction industry which returned -1.9% over the past year.

Return vs Market: 540642 underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

540642IndustryMarket
7 Day5.5%-1.3%-0.08%
30 Day13.1%-3.3%0.01%
90 Day8.9%-5.7%3.2%
1 Year-45.4%-46.5%-0.6%-1.9%11.5%9.5%
3 Yearn/a11.8%7.8%23.6%16.7%
5 Yearn/a10.0%3.8%35.5%22.9%

Price Volatility Vs. Market

How volatile is Salasar Techno Engineering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Salasar Techno Engineering undervalued compared to its fair value and its price relative to the market?

5.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 540642 (₹123.35) is trading above our estimate of fair value (₹26.26)

Significantly Below Fair Value: 540642 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 540642 is good value based on its PE Ratio (5.7x) compared to the Construction industry average (10.8x).

PE vs Market: 540642 is good value based on its PE Ratio (5.7x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 540642 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 540642 is overvalued based on its PB Ratio (0.8x) compared to the IN Construction industry average (0.6x).


Next Steps

Future Growth

How is Salasar Techno Engineering forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

25.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540642's forecast earnings growth (25.4% per year) is above the savings rate (6.5%).

Earnings vs Market: 540642's earnings (25.4% per year) are forecast to grow faster than the Indian market (20.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 540642's revenue (16.6% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 540642's revenue (16.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 540642's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Salasar Techno Engineering performed over the past 5 years?

22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540642 has high quality earnings.

Growing Profit Margin: 540642's current net profit margins (4.8%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: 540642's earnings have grown significantly by 22.2% per year over the past 5 years.

Accelerating Growth: 540642's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 540642 had negative earnings growth (-11.5%) over the past year, making it difficult to compare to the Construction industry average (4.8%).


Return on Equity

High ROE: 540642's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Salasar Techno Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: 540642's short term assets (₹3.9B) exceed its short term liabilities (₹2.6B).

Long Term Liabilities: 540642's short term assets (₹3.9B) exceed its long term liabilities (₹193.7M).


Debt to Equity History and Analysis

Debt Level: 540642's debt to equity ratio (85.4%) is considered high.

Reducing Debt: 540642's debt to equity ratio has reduced from 123.8% to 85.4% over the past 5 years.

Debt Coverage: 540642's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 540642's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: 540642 has a high level of physical assets or inventory.

Debt Coverage by Assets: 540642's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is Salasar Techno Engineering's current dividend yield, its reliability and sustainability?

2.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 540642's dividend (2.03%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 540642's dividend (2.03%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: 540642 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 540642's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.5%), 540642's dividend payments are thoroughly covered by earnings.


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?

3.0yrs

Average management tenure


CEO

Alok Kumar (63yo)

5.6yrs

Tenure

₹7,260,000

Compensation

Mr. Alok Kumar has been Managing Director at Salasar Techno Engineering Limited since July 01, 2014. Mr. Kumar takes care of purchases & finance. He has 41 years of rich experience in trading, manufacturin ...


CEO Compensation Analysis

Compensation vs Market: Alok's total compensation ($USD101.07K) is above average for companies of similar size in the Indian market ($USD50.04K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alok Kumar
Chairman & MD5.6yrs₹7.26m12.72% 208.5m
Shashank Agarwal
Joint MD & Executive Director3.5yrs₹6.60m9.7% 158.9m
Gyanendera Agarwal
President0yrsno data3.75% 61.4m
Pramod Kala
Chief Financial Officer1yrs₹3.80mno data
Kamlesh Gupta
General Manager of Admin0yrsno datano data
Rahul Rastogi
Compliance Officer & Company Secretary2.4yrs₹540.00kno data
Shalabh Agarwal
Whole Time Director5.6yrs₹5.28m9.7% 158.9m
Tripti Gupta
Whole Time Director5.5yrs₹4.62m3.01% 49.3m
Shikhar Gupta
Vice President0yrsno datano data
Raghav Agarwal
Vice President0yrsno datano data

3.0yrs

Average Tenure

50yo

Average Age

Experienced Management: 540642's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alok Kumar
Chairman & MD5.6yrs₹7.26m12.72% 208.5m
Shashank Agarwal
Joint MD & Executive Director3.5yrs₹6.60m9.7% 158.9m
Shalabh Agarwal
Whole Time Director5.6yrs₹5.28m9.7% 158.9m
Tripti Gupta
Whole Time Director5.5yrs₹4.62m3.01% 49.3m
Anil Jain
Non-Executive Independent Director3.1yrs₹75.00kno data
Sanjay Chandak
Non-Executive Independent Director3.1yrs₹15.00kno data
Vijay Jain
Non-Executive Independent Director3.1yrs₹85.00kno data
Amit Jain
Non-Executive Independent Director2.7yrs₹55.00kno data

3.3yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 540642's board of directors are considered experienced (3.3 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

Salasar Techno Engineering Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Salasar Techno Engineering Limited
  • Ticker: 540642
  • Exchange: BSE
  • Founded: 2001
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹1.639b
  • Shares outstanding: 13.29m
  • Website: https://www.salasartechno.com

Location

  • Salasar Techno Engineering Limited
  • E-20, South Extension I
  • New Delhi
  • Delhi
  • 110049
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SALASARNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2017
540642BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2017

Biography

Salasar Techno Engineering Limited manufactures galvanized steel structures in India and internationally. The company’s products include telecommunication towers, power transmission line towers, smart lighting poles, monopoles, guard rails, substation structures, solar module mounting structures, and customized galvanized and non-galvanized steel structures. It also offers engineering, procurement, and control services for rural electrification, power transmission lines, and solar power plant projects. In addition, the company undertakes EPC turnkey projects for power transmission and solar mounting structures. It also exports its products. Salasar Techno Engineering Limited was incorporated in 2001 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 13:35
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.