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INVESTMENT INSIGHTS

Check Before You Invest : Sal Automotive Ltd

BSE: 539353 NSE: ISIN: INE724G01014
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Sal Automotive Ltd belong to?
Sal Automotive Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Sal Automotive Ltd a good quality company?
Sal Automotive Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Sal Automotive Ltd undervalued or overvalued?
Sal Automotive Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Sal Automotive Ltd a good buy now?
Sal Automotive Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Sal Automotive Ltd?
Sal Automotive Ltd revenue growth is 22.8% for FY-2025 , which is below its 5 year CAGR of 34.6% , indicating slower growth.
Q.2 Gross Profit margin of Sal Automotive Ltd?
Sal Automotive Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.2% for FY-2025 , which is above its 5 year median of 3.1% , indicating increasing margins.
Q.3 Operating Profit Margin of Sal Automotive Ltd?
Sal Automotive Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.38% for FY-2025 , which is in line with its 5 year median of 3.38% indicating stable margins.
Q.4 Net Profit Margin of Sal Automotive Ltd?
Sal Automotive Ltd Net Profit Margin is 1.43% for FY-2025 , is in line with with its 5 year median of 1.43%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 3.2 3.1
Operating Profit Margin 3.38 3.38
Net Profit Margin 1.43 1.43
Q.5 Return on Asset of Sal Automotive Ltd?
Sal Automotive Ltd Return on Asset is 4.59%, which is above its 5 year historical median of 4.02%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Sal Automotive Ltd?
Sal Automotive Ltd Return on equity is 13.18% for FY-2025 , which is in line with its historical median of 13.18%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Sal Automotive Ltd?
Sal Automotive Ltd Return on capital employed is 15.95% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Sal Automotive Ltd?
Sal Automotive Ltd Cash conversion cycle is 15 days, below its historical median of 15 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 3.21 2.54
ROE 13.18 13.18
ROCE 15.95 13.78
Cash Conversion Cycle 15 days 15 days
Q.9 Debt to Equity ratio of Sal Automotive Ltd?
Sal Automotive Ltd Debt-to-Equity ratio is 0.51 , which is above with the industry average of 0.4 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Sal Automotive Ltd?
Sal Automotive Ltd Debt to cash flow from operations is 2.31 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sal Automotive Ltd?
Promoters hold 75.00% of the Sal Automotive Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sal Automotive Ltd vs industry peers?
Sal Automotive Ltd revenue CAGR is 34.61% , compared to the industry median CAGR of 11.82% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 377.8 492.3
Gross Profit 12.1 44.4
Operating Profit 12.8 47
Net Profit 5.4 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 3.21 1.23
ROE 13.18 11.57
ROCE 15.95 13.36
Cash Conversion Cycle (days) 15.41 47

Valuation & price assessment

Q.1 Stock return of Sal Automotive Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 33% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 33% 22% 11.7% -23.3%
Q.3 Valuation ratios of Sal Automotive Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 23.22 22.35 39.31
Price to Book 2.2 1.53 2.88
Price to Sales 0.26 0.45 1.29
EV to EBITDA 9.5 9.61 11.85

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