Check Before You Invest : Salasar Techno Engineering Ltd

Snapshot

Q.1 Which industry/sub-sector does Salasar Techno Engineering Ltd belong to?

Salasar Techno Engineering Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Salasar Techno Engineering Ltd a good quality company?

Salasar Techno Engineering Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Salasar Techno Engineering Ltd undervalued or overvalued?

Salasar Techno Engineering Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Salasar Techno Engineering Ltd a good buy now?

Salasar Techno Engineering Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Salasar Techno Engineering Ltd?

Salasar Techno Engineering Ltd revenue growth is 19.8% for FY-2025, which is below its 5-year CAGR of 22.43%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Salasar Techno Engineering Ltd?

Salasar Techno Engineering Ltd Return on capital employed is 9.62% for FY-2025, which is below its 5-year historical median of 14.23%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Salasar Techno Engineering Ltd?

Salasar Techno Engineering Ltd Return on Asset is 1.33%, which is below its 5-year historical median of 5.09%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Salasar Techno Engineering Ltd?

Salasar Techno Engineering Ltd Return on equity is 3.15% for FY-2025, which is below its 5-year historical median of 11.8%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Salasar Techno Engineering Ltd?

Salasar Techno Engineering Ltd Cash conversion cycle is 152 days, below its 5-year historical median of 163 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.01	1.17
ROE	3.15	11.8
ROCE	9.62	14.23
Cash Conversion Cycle	152 days	163 days

Q.6 Gross Profit margin of Salasar Techno Engineering Ltd?

Salasar Techno Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.7% for FY-2025, which is below its 5-year median of 6.8%, indicating decreasing margins.

Q.7 Operating Profit Margin of Salasar Techno Engineering Ltd?

Salasar Techno Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.1% for FY-2025, which is below its 5-year median of 9.55% indicating decreasing margins.

Q.8 Net Profit Margin of Salasar Techno Engineering Ltd?

Salasar Techno Engineering Ltd Net Profit Margin is 1.32% for FY-2025, is below with its 5-year median of 4.38%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.7	6.8
Operating Profit Margin	8.1	9.55
Net Profit Margin	1.32	4.38

Q.9 Debt to Equity ratio of Salasar Techno Engineering Ltd?

Salasar Techno Engineering Ltd Debt-to-Equity ratio is 0.41, which is above with the industry average of 0.34, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Salasar Techno Engineering Ltd?

Salasar Techno Engineering Ltd Debt to cash flow from operations is -57.83, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Salasar Techno Engineering Ltd?

Promoters hold 47.24% of the Salasar Techno Engineering Ltd, with 4.84% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Salasar Techno Engineering Ltd vs industry peers?

Salasar Techno Engineering Ltd revenue CAGR is 22.43%, compared to the industry median CAGR of 12.01%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	19.8	12
Gross Profit Growth	-17.1	NAN
Operating Profit Growth	-7.4	NAN
Net Profit Growth	-64.2	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.01	0.91
ROE	3.15	12.81
ROCE	9.62	15.04
Cash Conversion Cycle (days)	152.39	107

Valuation & price assessment

Q.1 Stock return of Salasar Techno Engineering Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 9.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	9.1%	-5.1%	-14%

Q.3 Valuation ratios of Salasar Techno Engineering Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	53.36	40.02	29.52
Price to Book	1.53	2.99	2.90
Price to Sales	0.84	1.31	2.94
EV to EBITDA	11.94	16.53	15.76

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