Salora International Limited

Technology — Consumer Electronics · BSE

₹23.87−₹0.42 (−1.73%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Salora International Limited engages in the manufacture, distribution, and marketing of consumer electronics primarily under Salora brand in India and internationally.

IndustryConsumer Electronics

SectorTechnology

Employees19

Annual revenue₹61 Cr

How does it make money?

Turns over ₹61 Cr a year. Of every ₹100 of sales, about ₹-7 reaches shareholders as profit, with ₹-1 left at the operating level before interest, tax and depreciation. Each of its 19 employees supports ₹3.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. 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 -6.3% 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 ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -47% while net margin moved -14% 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-47%

Margin effect-14%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 19.2% a year
✗ Latest-year revenue growth of -87.7% is below the longer-term trend — momentum is fading
✗ Profit fell 207.3% in the latest year

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -15.3% to -8.0%.
Return on capital is rising
ROCE has improved from -17.9% to -6.3%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -2.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹4 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -0.3x to -2.2x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹5 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above -3%✓ -0.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -2.2x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -6.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

3 good · 2 neutral · 6 weak

Market Cap

₹21 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.41x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-5.8

Loss-making

Negative earnings per share — the business is losing money

ROE

-8.0%

Weak

Weak capital efficiency

ROCE

-6.3%

Weak

Low return on total capital employed

Debt/Equity

0.37x

Low

Conservative leverage

Revenue Growth (YoY)

-87.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-207.3%

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

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-22.3%

Weak

Thin margins leave little room for error

Net Margin

-13.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.13

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.16

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

25.3 / 26.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹116 Cr	₹158 Cr	₹151 Cr	₹61 Cr	-19.2%
EBITDA	₹1 Cr	-₹1 Cr	-₹0 Cr	-₹0 Cr	—
EBITDA Margin	0.6%	-0.7%	-0.1%	-0.6%	—
PAT (Net Profit)	-₹9 Cr	-₹2 Cr	-₹1 Cr	-₹4 Cr	—
EPS	₹-10.18	₹-2.37	₹-1.51	₹-4.63	—
ROE	-15.3%	-3.7%	-2.4%	-8.0%	—
ROCE	-17.9%	-2.2%	-0.7%	-6.3%	—
Total Debt	₹18 Cr	₹16 Cr	₹22 Cr	₹19 Cr	+1.3%
Free Cash Flow	-₹10 Cr	₹4 Cr	-₹5 Cr	₹5 Cr	—

🔴 Revenue has shrunk at 19.2% a year over 3 years.

🔴 EBITDA has turned negative, from ₹1 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 0.6% to -0.6% over 3 years (-1.2 pts).

🟢 ROE has risen from -15.3% to -8.0% over 3 years (+7.3 pts).

🟢 ROCE has risen from -17.9% to -6.3% over 3 years (+11.6 pts).

🟡 Total Debt has been broadly flat over 3 years (1.3% a year).

🟢 Free Cash Flow has turned positive, from -₹10 Cr to ₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹75 Cr

Total Liabilities

₹24 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.8%

Corporate Actions

Ex-Dividend Date

13 Jul 2009

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

2 negative4 general

Salora International Ltd. Peer Comparison – Compare with Others

Value Research, 27 Aug

Salora International sets record date for 57th AGM on September 18

scanx.trade, 25 Sept

ONIDA Stock Price and Chart — NSE:ONIDA

TradingView, 02 Aug

SALORA INTERNATIONAL Share Price

Upstox, 16 Apr

Salora International Q1 Results: Revenue falls 88% YoY to ₹338.44 lakh

scanx.trade, 13 AugResults

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

Salora International Receives GST Show Cause Notice, Registration Suspended

scanx.trade, 28 MarRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Watch Items

Revenue growth is negative (-87.7%) 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

WeakBusiness Quality · Growth · Profitability · Risk

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 4 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑