Salasar Techno (SALASAR)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Debt/equity of 0.43 indicates a manageable balance sheet.
• Promoter holding of 46.59% provides meaningful owner alignment.
• Latest quarter sales of ₹331 crore show the business still has a meaningful revenue base.
• ROCE of 10.96% is above ROE, suggesting some operating return before financing costs.

Concerns

• P/E of 66.50 is very rich even as profit has declined by 55.06%.
• ROE of only 7.19% and Piotroski F-score of 3/9 point to weak and deteriorating fundamentals.
• Sales are down 11.83% and the latest quarterly net margin is only about 2.1% (₹7 crore on ₹331 crore).
• No dividend is paid, so shareholders receive no cash return while waiting for a recovery.

AI Analysis

At ₹7.45, Salasar Techno carries a market capitalisation of ₹1,383 crore. Benjamin Graham taught me to value facts, not hopes, and the facts are uncomfortable. The trailing P/E is 66.50, while profit has fallen 55.06% and sales have declined 11.83%. Return on equity is just 7.19%; return on capital employed is 10.96%, but for a volatile industrial business I want a much larger cushion. The Piotroski F-score is 3 out of 9, a clear sign of financial deterioration. Book value is ₹4.03, so I am paying 1.85 times book for weak profitability. This is not a Graham bargain. There are some positives. Debt/equity of 0.43 suggests the balance sheet is manageable. Promoters own 46.59%, so their interests are aligned with mine. But there is zero dividend, so I receive no cash while I wait. The latest quarter—sales of ₹331 crore and net profit of just ₹7 crore—shows margins are squeezed; even if that pace were maintained, annual net profit would be only about ₹28 crore against a market cap of ₹1,383 crore. At roughly one time annualised sales, the market is still pricing optimism. This looks like a cyclical industrial products business in a downcycle, not a franchise. There is no durable moat; competition and capital intensity are high. The stock is closer to the bottom of its 52-week range of ₹5.59-₹10.99, but a low price is not the same as intrinsic value. I need evidence of stable sales, fatter margins, and sustained improvement in returns before this becomes attractive. Until then, Salasar Techno is a watchlist candidate, not a purchase. Price alone is never value.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer