BSE:540642

Stock Analysis Report

Salasar Techno Engineering

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet and fair value.


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


Market Performance


7 Day Return

-9.9%

540642

0.3%

IN Construction

0.5%

IN Market


1 Year Return

-52.5%

540642

5.2%

IN Construction

0.9%

IN Market

Return vs Industry: 540642 underperformed the Indian Construction industry which returned 5.2% over the past year.

Return vs Market: 540642 underperformed the Indian Market which returned 0.9% over the past year.


Share holder returns

540642IndustryMarket
7 Day-9.9%0.3%0.5%
30 Day-20.2%1.7%1.0%
90 Day-35.1%-5.1%-3.2%
1 Year-51.7%-52.5%6.5%5.2%2.8%0.9%
3 Yearn/a22.2%18.3%20.3%14.3%
5 Yearn/a43.3%35.6%43.1%29.8%

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 based on future cash flows and its price relative to the stock market?

4.24x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: 540642 (₹100.45) is trading above our estimate of fair value (₹26.63)

Significantly Undervalued: 540642 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: 540642 is good value based on its PE Ratio (4.2x) compared to the Construction industry average (12.2x).

PE vs Market: 540642 is good value based on its PE Ratio (4.2x) compared to the Indian market (13.1x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: 540642 is overvalued based on its PB Ratio (0.7x) compared to the IN Construction industry average (0.7x).


Next Steps

Future Growth

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

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 540642's forecast earnings growth (18% per year) is above the savings rate (7.6%).

Earnings vs Market: 540642's earnings (18% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: 540642's earnings are forecast to grow, but not significantly.

Revenue vs Market: 540642's revenue (14.7% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: 540642's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

27.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 540642's earnings have grown significantly by 27.7% 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 (-2.9%) over the past year, making it difficult to compare to the Construction industry average (1.1%).


Return on Equity

High ROE: 540642's Return on Equity (16.6%) is considered low.


Return on Assets

ROA vs Industry: 540642 has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 540642 has improved its Return on Capital Employed over the past 3 years.


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) exceeds its short term liabilities (₹2.6B)

Long Term Liabilities: 540642's short term assets (3.9B) exceeds its long term liabilities (211.7M)


Debt to Equity History and Analysis

Debt Level: 540642's debt to equity ratio (79.5%) is considered high

Reducing Debt: 540642's debt to equity ratio has reduced from 139.3% to 79.5% 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 (3.8x 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 2.561140x debt).


Next Steps

Dividend

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

2.99%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%0.6%markettop25%2.5%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 540642's dividend (2.99%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: 540642's dividend (2.99%) is in the top 25% of dividend payers in the Indian market (2.46%)

Stable Dividend: Whilst dividend payments have been stable, 540642 has been paying a dividend for less than 10 years.

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 (10.5%), 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

What is the CEO of Salasar Techno Engineering's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Alok Kumar (63yo)

5.3yrs

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: Insufficient data to establish whether Alok's total compensation is reasonable compared to companies of similar size in the Indian market.

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


Management Age and Tenure

2.1yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 540642's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 540642's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Alok Kumar (63yo)

    Chairman & MD

    • Tenure: 5.3yrs
    • Compensation: ₹7.26m
  • Shashank Agarwal (50yo)

    Joint MD & Executive Director

    • Tenure: 3.2yrs
    • Compensation: ₹6.60m
  • Shalabh Agarwal (46yo)

    Whole Time Director

    • Tenure: 5.3yrs
    • Compensation: ₹5.28m
  • Tripti Gupta (36yo)

    Whole Time Director

    • Tenure: 5.2yrs
    • Compensation: ₹4.62m
  • Gyanendera Agarwal (79yo)

    President

    • Tenure: 0yrs
  • Rahul Rastogi

    Compliance Officer & Company Secretary

    • Tenure: 2.1yrs
    • Compensation: ₹540.00k
  • Sandesh Chavan (47yo)

    Business Head

    • Tenure: 2.1yrs
  • Pramod Kala (47yo)

    Chief Financial Officer

    • Tenure: 0.7yrs
    • Compensation: ₹3.80m
  • Kamlesh Gupta (63yo)

    General Manager of Admin

    • Tenure: 0yrs
  • Shikhar Gupta

    Vice President

    • Tenure: 0yrs

Board Members

  • Alok Kumar (63yo)

    Chairman & MD

    • Tenure: 5.3yrs
    • Compensation: ₹7.26m
  • Shashank Agarwal (50yo)

    Joint MD & Executive Director

    • Tenure: 3.2yrs
    • Compensation: ₹6.60m
  • Shalabh Agarwal (46yo)

    Whole Time Director

    • Tenure: 5.3yrs
    • Compensation: ₹5.28m
  • Tripti Gupta (36yo)

    Whole Time Director

    • Tenure: 5.2yrs
    • Compensation: ₹4.62m
  • Anil Jain (58yo)

    Non-Executive Independent Director

    • Tenure: 2.8yrs
    • Compensation: ₹75.00k
  • Sanjay Chandak (53yo)

    Non-Executive Independent Director

    • Tenure: 2.8yrs
    • Compensation: ₹15.00k
  • Vijay Jain (76yo)

    Non-Executive Independent Director

    • Tenure: 2.8yrs
    • Compensation: ₹85.00k
  • Amit Jain (40yo)

    Non-Executive Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹55.00k

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: ₹1.367b
  • 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 ligh ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:54
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.

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