Salzer Electronics Limited (SALZERELEC) AI Stock Analysis

• Market Cap: ₹13.77B
• Dividend Yield: 0.31%
• Average Volume (3M): 5.33K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.38
• Revenue Growth: 21.71%
• EPS Growth: 35.01%
• Country: IN
• Employees: 749
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 9.77
• Shares Outstanding: 17,682,737
• 10 Day Avg. Volume: 6,715
• 30 Day Avg. Volume: 5,333
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹901.00
• Price Target Upside: 15.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ₹901.00 ▲(15.71% Upside)

Salzer Electronics Limited shows strong financial performance with robust revenue growth and profitability. However, cash flow challenges and increasing leverage are significant risks. Technical indicators suggest a bearish trend, and the valuation is moderate with a low dividend yield. These factors collectively result in a cautious outlook for the stock.

Salzer Electronics Limited Business Overview & Revenue Model

Company Description

Salzer Electronics Limited manufactures and supplies CAM operated rotary switches, selector switches, wiring ducts, voltmeter switches, and allied products primarily in India. The company offers industrial components, including cable ducts; changeover switches and solar isolators; general purpose relays; load break and photovoltaic isolators; and changeovers; relays; sensors; limit and foot switches; terminal connectors; customized control panels; and industrial plug and sockets. It also provides toroidal transformers, CT's and rogowski coils, inductors, chokes, filters, and three phase dry type transformers; building segment products, including automatic source changeover with current limiter, distribution boards, miniature circuit breakers, modular switches and speciality, movement sensors, remote switches, single phase motor starters, and house wires; industrial wires and cables, busbars and wire harness, enamelled copper wire, bunched copper conductors, tinned copper wires, and lan cables; motor control products, which include contractors and overload relays, motor protection circuit breaker, and miniature circuit breakers; and energy savers and panels, and street light controllers, as well as angle and batten holders, and wire duct cutters. Salzer Electronics Limited also exports its products. The company was incorporated in 1985 and is based in Coimbatore, India.

How the Company Makes Money

Salzer Electronics Limited generates revenue through the manufacturing and sale of its electrical products. The company's key revenue streams include industrial switches, wires and cables, and energy-saving devices, which are supplied to a diverse clientele across multiple industries. By leveraging its strong distribution network and technological expertise, Salzer ensures a steady demand for its products. Additionally, strategic partnerships and collaborations with global companies enhance its market reach and contribute to its financial growth. Export sales also play a significant role in the company's earnings, as Salzer continues to expand its presence in international markets.

Salzer Electronics Limited Financial Statement Overview

Summary

Salzer Electronics Limited shows strong revenue growth and improving profitability, with a significant increase in gross profit margin. However, challenges in cash flow management and a slight decline in EBITDA margin indicate potential risks. The balance sheet is stable, but increasing leverage requires careful monitoring.

Income Statement

Salzer Electronics Limited shows strong revenue growth and improving profitability. The gross profit margin increased to 25.4% in 2025 from 12.6% in 2024, indicating enhanced cost management. The net profit margin remained stable at 3.2% despite a significant rise in total revenue, reflecting consistent profitability. However, the decline in EBITDA margin from 10.2% in 2024 to 9.8% in 2025 suggests some operational efficiency challenges.

Balance Sheet

The company's balance sheet exhibits moderate leverage with a debt-to-equity ratio of 0.77, indicating manageable debt levels. The equity ratio of 46.2% reflects a stable capital structure. Return on Equity (ROE) improved to 8.5% in 2025 from 9.7% in 2024, suggesting efficient use of equity. However, the increase in total debt raises potential risk if revenue growth does not continue to outpace debt growth.

Cash Flow

Cash flow management remains a challenge for Salzer Electronics Limited. The free cash flow has been negative, with a decline from -231.8 million in 2024 to -809.6 million in 2025, indicating potential liquidity constraints. The operating cash flow to net income ratio turned negative in 2025, which could impact future investments and debt servicing capabilities. The company needs to improve cash flow efficiency to support its growth trajectory.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	10.64B	14.24B	11.64B	10.37B	6.21B	8.01B
Gross Profit	2.80B	3.62B	1.47B	2.23B	1.36B	1.66B
EBITDA	1.20B	1.39B	1.19B	976.18M	566.82M	615.49M
Net Income	522.48M	460.31M	458.75M	387.05M	205.17M	225.93M
Balance Sheet
Total Assets	11.80B	11.80B	9.93B	8.95B	6.85B	7.52B
Cash, Cash Equivalents and Short-Term Investments	180.58M	180.58M	182.78M	220.43M	134.48M	103.34M
Total Debt	4.21B	4.22B	3.12B	2.82B	2.04B	2.52B
Total Liabilities	6.27B	6.27B	5.13B	4.82B	3.48B	3.94B
Stockholders Equity	5.45B	5.45B	4.73B	4.08B	3.32B	3.54B
Cash Flow
Free Cash Flow	0.00	-809.62M	-231.82M	-151.33M	-47.84M	-317.92M
Operating Cash Flow	0.00	-112.86M	237.69M	226.73M	137.76M	-122.37M
Investing Cash Flow	0.00	-789.56M	-458.92M	-348.52M	-160.45M	-160.82M
Financing Cash Flow	0.00	905.09M	161.51M	178.22M	44.10M	261.31M

Salzer Electronics Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 778.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SALZERELEC, the sentiment is Negative. The current price of 778.65 is below the 20-day moving average (MA) of 812.30, below the 50-day MA of 830.37, and below the 200-day MA of 1018.56, indicating a bearish trend. The MACD of -10.58 indicates Positive momentum. The RSI at 34.18 is Neutral, neither overbought nor oversold. The STOCH value of 10.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SALZERELEC.

Salzer Electronics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDNIPPON	68 Neutral	21.15B	24.21	11.57%	1.35%	17.61%	28.12%
INDOTECH	68 Neutral	18.11B	23.48	22.75%	―	40.81%	56.69%
WHEELS	65 Neutral	21.10B	18.01	12.03%	1.34%	-1.77%	52.97%
SALZERELEC	61 Neutral	₹13.77B	19.80	―	0.31%	21.71%	35.01%
HIRECT	60 Neutral	29.13B	67.72	23.21%	0.12%	32.24%	144.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%