SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Salzer Electronics Ltd

BSE: 517059 NSE: SALZERELEC ISIN: INE457F01013
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electric Equipment

Snapshot

Q.1 Which industry/sub-sector does Salzer Electronics Ltd belong to?
Salzer Electronics Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.
Q.2 Is Salzer Electronics Ltd a good quality company?
Salzer Electronics Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Salzer Electronics Ltd undervalued or overvalued?
Salzer Electronics Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Salzer Electronics Ltd a good buy now?
Salzer Electronics 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 Salzer Electronics Ltd?
Salzer Electronics Ltd revenue growth is 21.8% for FY-2025 , which is above its 5 year CAGR of 19.5% , indicating faster growth.
Q.2 Gross Profit margin of Salzer Electronics Ltd?
Salzer Electronics Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.5% for FY-2025 , which is below its 5 year median of 6.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of Salzer Electronics Ltd?
Salzer Electronics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.21% for FY-2025 , which is in line with its 5 year median of 9.21% indicating stable margins.
Q.4 Net Profit Margin of Salzer Electronics Ltd?
Salzer Electronics Ltd Net Profit Margin is 4.5% for FY-2025 , is above with its 5 year median of 3.59%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 6.5 6.6
Operating Profit Margin 9.21 9.21
Net Profit Margin 4.5 3.59
Q.5 Return on Asset of Salzer Electronics Ltd?
Salzer Electronics Ltd Return on Asset is 5.83%, which is above its 5 year historical median of 4.49%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Salzer Electronics Ltd?
Salzer Electronics Ltd Return on equity is 12.52% for FY-2025 , which is above its historical median of 9.8%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Salzer Electronics Ltd?
Salzer Electronics Ltd Return on capital employed is 14.31% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Salzer Electronics Ltd?
Salzer Electronics Ltd Cash conversion cycle is 139 days, below its historical median of 143 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.3 1.23
ROE 12.52 9.8
ROCE 14.31 11.9
Cash Conversion Cycle 139 days 143 days
Q.9 Debt to Equity ratio of Salzer Electronics Ltd?
Salzer Electronics Ltd Debt-to-Equity ratio is 0.79 , 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 Salzer Electronics Ltd?
Salzer Electronics Ltd Debt to cash flow from operations is -24.59 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Salzer Electronics Ltd?
Promoters hold 37.48% of the Salzer Electronics Ltd, with 17.20% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Salzer Electronics Ltd vs industry peers?
Salzer Electronics Ltd revenue CAGR is 19.52% , compared to the industry median CAGR of 13.21% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,382.9 143.5
Gross Profit 89.9 14
Operating Profit 125 13
Net Profit 62 8
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.3 1.05
ROE 12.52 9.8
ROCE 14.31 13.56
Cash Conversion Cycle (days) 139.24 102

Valuation & price assessment

Q.1 Stock return of Salzer Electronics Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 11.5% 39.7% 29.2% -40.4%
Q.3 Valuation ratios of Salzer Electronics 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 21.35 7.77 50.19
Price to Book 1.95 0.53 3.60
Price to Sales 0.69 0.33 2.68
EV to EBITDA 11.09 5.72 19.22

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×