Salasar Techno Engineering Limited

Basic Materials — Steel · NSE

₹4.24−₹0.05 (−1.17%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of Salasar Techno Engineering Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Salasar Techno Engineering Limited engages in the manufacture and sale of galvanized and non-galvanized steel structures in India and internationally. It operates in two segments, Steel Structure, and Engineering Procurement and Construction.

IndustrySteel

SectorBasic Materials

Employees1,349

Annual revenue₹1,452 Cr

How does it make money?

Turns over ₹1,452 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 1,349 employees supports ₹1.08 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.08 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +48% while net margin moved -71% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+48%

Margin effect-71%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 10.0% is below 10% — capital is not working hard
✗ ROCE has fallen by 7.9 points — returns are eroding
✗ EBITDA margin of 7.9% is thin — little cushion if costs rise
✗ Net margin of 0.9% is slim
• Revenue has compounded at 14.1% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

39/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

47/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

53.0x

3Y Median

53.1x

40 monthly readings · mean 55.9x · range 21.0x–99.4x

Sector Median

18.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 53.1x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 192% above the peer median of 18.2x.

vs. its own history

Fair

53.1x median over 40 months · -0%

vs. sector peers

Expensive

18.2x median of 4 peers · +192%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

10.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.0% to 2.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.9% to 10.0% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 2 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 55% over 3 years, from ₹273 Cr to ₹422 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.8x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 57% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 95% against revenue up 48% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 91% against revenue up 48% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 95% against revenue up 48%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 192% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 10.0% to 2.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.1% CAGR
Latest reported year was -1.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.8x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹85 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹741 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

53.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.89x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.08

Profitable

Profitable on a per-share basis

ROE

2.1%

Weak

Weak capital efficiency

ROCE

10.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.51x

Low

Conservative leverage

Revenue Growth (YoY)

-1.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-40.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹85 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.2%

Average

Average margins

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.16

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

4.4 / 5.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹979 Cr	₹1,175 Cr	₹1,418 Cr	₹1,452 Cr	+14.1%
EBITDA	₹89 Cr	₹121 Cr	₹129 Cr	₹114 Cr	+8.5%
EBITDA Margin	9.1%	10.3%	9.1%	7.9%	—
PAT (Net Profit)	₹40 Cr	₹53 Cr	₹19 Cr	₹17 Cr	-24.6%
EPS	₹0.26	₹0.34	₹0.11	₹0.1	-27.3%
ROE	10.0%	11.8%	2.4%	2.1%	—
ROCE	17.9%	22.0%	10.1%	10.0%	—
Total Debt	₹273 Cr	₹350 Cr	₹317 Cr	₹422 Cr	+15.6%
Free Cash Flow	-₹70 Cr	-₹4 Cr	-₹19 Cr	₹85 Cr	—

🟢 Revenue has grown at 14.1% a year over 3 years.

🟢 EBITDA has grown at 8.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.1% to 7.9% over 3 years (-1.3 pts).

🔴 PAT (Net Profit) has shrunk at 24.6% a year over 3 years.

🔴 EPS has shrunk at 27.3% a year over 3 years.

🔴 ROE has fallen from 10.0% to 2.1% over 3 years (-8.0 pts).

🔴 ROCE has fallen from 17.9% to 10.0% over 3 years (-7.9 pts).

🔴 Total Debt has grown at 15.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹70 Cr to ₹85 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,154 Cr

Total Liabilities

₹1,319 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹161 Cr

Capex

-₹76 Cr

Shareholding (proxy)

Institutional Holding

0.2%

Insider Holding

45.5%

Corporate Actions

Ex-Dividend Date

15 Sept 2023

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

2 mixed1 negative3 general

Salasar Techno Engineering Share Price Target 2027 to 2030: Analy

Univest, 18 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Salasar Techno Engineering AGM set for Sep 30; seeks ₹1,500 crore borrowing limit

scanx.trade, 05 Sept

Salasar Techno Engineering Ltd. Peer Comparison – Compare with Others

Value Research, 27 Aug

Salasar Techno Engineering Advances Merger Scheme To Drive Corporate Growth

Sahi, 19 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Salasar Techno Engineering consolidated net profit declines 41.36% in the June 2026 quarter

Business Standard, 14 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Salasar Techno Engineering (NSE:SALASAR) Has A Somewhat Strained Balance Sheet

Simply Wall Street, 10 Feb

Watch Items

Revenue growth is negative (-1.5%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑