Salasar Techno Engineering Ltd. (SALASAR) AI Stock Analysis

• Market Cap: ₹12.97B
• Dividend Yield: N/A
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): 70.4
• Beta (1Y): 1.28
• Revenue Growth: 27.20%
• EPS Growth: -45.92%
• Country: IN
• Employees: 1,312
• Sector: Services
• Sector Strength: N/A
• Industry: Steel
• EPS (TTM): 0.03
• Shares Outstanding: 1,747,950,300
• 10 Day Avg. Volume: 650,665
• 30 Day Avg. Volume: 2,854,826
• PEG Ratio: -1.27
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 1.14
• P/FCF Ratio: -27.48
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹8.00 ▼(-10.41% Downside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

Salasar Techno Engineering Ltd. has a strong technical outlook with bullish momentum, which is the most significant factor in its score. However, financial performance concerns, particularly in net income and cash flow management, and a high P/E ratio indicating overvaluation, weigh down the overall score.

Positive Factors

Revenue Growth

Sustained multi-year revenue growth shows the company is expanding market share and winning new project work. This scale supports fixed-cost absorption, gives pricing leverage on large orders, and underpins medium-term capacity utilization and contract pipeline stability.

Diversified Business Model

A mix of fabrication, galvanizing, engineering, and EPC services creates multiple revenue streams and cross-sell opportunities. Structural exposure to transmission, telecom and industrial capex reduces reliance on a single end market and supports steadier order inflows across cycles.

Prudent Leverage

Moderate leverage and a strengthening equity ratio provide financial flexibility to fund project execution and capex. Lower relative debt reduces refinancing pressure, improves covenant headroom, and helps the firm absorb cyclicality without overly constraining investment or bidding capability.

Negative Factors

Weak Cash Generation

Repeated negative free cash flow and inconsistent operating cash conversion limit the company's ability to self-fund growth or buffer project overruns. Reliance on external financing increases cost of capital and exposes the business to liquidity stress if project payments are delayed.

Margin Pressure

Eroding operating margins and a pronounced drop in net income indicate rising input costs or execution inefficiencies. Persistent margin compression would impair return on invested capital, reduce internal cash generation, and weaken competitiveness on price-sensitive EPC contracts.

Commodity & Project Risk

Material exposure to steel-price volatility and project-driven revenue makes earnings and margins cyclical. Large project work also concentrates execution and working-capital risk, heightening sensitivity to input-cost spikes and client payment timing over the medium term.

Salasar Techno Engineering Ltd. Business Overview & Revenue Model

Company Description

Salasar Techno Engineering Limited manufactures and sells galvanized steel structures in India and internationally. The company's products include telecommunication towers, power transmission line towers, smart lighting poles, monopoles, guard rails, substation structures, solar module mounting structures, and customized galvanized and non-galvanized steel structures. It also offers engineering, procurement, and control services for rural electrification, power transmission lines, and solar power plant projects. In addition, the company undertakes engineering, procurement, and construction projects for survey, supply of materials, design, erection, and testing and commissioning on a turnkey basis. Salasar Techno Engineering Limited was incorporated in 2001 and is based in New Delhi, India.

How the Company Makes Money

Salasar Techno Engineering Ltd. primarily generates revenue through the execution of engineering and construction projects, with a focus on the supply and installation of transmission and telecom towers. The company’s revenue model is built around securing contracts from government and private sector clients, which include utility companies and telecom operators. Key revenue streams include the sale of fabricated steel structures, project management services, and ongoing maintenance contracts. The company also benefits from significant partnerships with major players in the energy and telecommunications sectors, enhancing its market presence and enabling it to secure large-scale projects that contribute to its overall earnings.

Salasar Techno Engineering Ltd. Financial Statement Overview

Summary

Salasar Techno Engineering Ltd. shows strong revenue growth and a solid equity position, indicative of good market performance and financial management. However, declining net income and erratic cash flow trends highlight areas needing attention, particularly in cost management and operational efficiency.

Income Statement

Salasar Techno Engineering Ltd. has shown strong revenue growth over the years with a notable increase from INR 5,813 million in 2021 to INR 14,474 million in 2025. Despite a dip in EBIT and EBITDA margins in 2025 compared to previous years, the company maintains good overall profitability with a consistent gross profit margin. However, the significant drop in net income in 2025 indicates challenges in managing costs or increased financial expenses.

Balance Sheet

The company's balance sheet reveals a solid equity base with a debt-to-equity ratio of 0.40 in 2025, showcasing prudent financial management in terms of leverage. The equity ratio has strengthened over the years, reflecting an increase in stockholder equity relative to total assets. However, the increase in total debt and liabilities in 2025 points to a potential risk if not managed carefully.

Cash Flow

Cash flow analysis shows inconsistency, with negative free cash flow in most years, including a significant negative free cash flow of INR 599 million in 2025. Despite this, the company has managed financing cash flows effectively. The operating cash flow to net income ratio is concerning, indicating operational challenges affecting cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.40B	14.47B	12.07B	10.05B	7.19B	5.97B
Gross Profit	2.20B	1.81B	1.69B	1.88B	1.29B	822.36M
EBITDA	1.15B	1.11B	1.21B	935.67M	711.59M	671.29M
Net Income	248.76M	191.05M	529.33M	401.71M	314.45M	296.47M
Balance Sheet
Total Assets	0.00	17.25B	11.51B	9.14B	6.83B	5.53B
Cash, Cash Equivalents and Short-Term Investments	53.06M	528.78M	26.71M	4.78M	3.31M	106.14M
Total Debt	0.00	3.17B	3.50B	2.73B	2.49B	1.98B
Total Liabilities	-7.86B	9.39B	7.00B	5.13B	4.00B	3.00B
Stockholders Equity	7.86B	7.86B	4.50B	4.01B	2.82B	2.53B
Cash Flow
Free Cash Flow	-725.95M	-599.39M	-40.55M	-696.44M	-252.31M	-340.63M
Operating Cash Flow	-670.36M	-476.78M	516.56M	-1.65M	14.92M	-71.27M
Investing Cash Flow	-1.63B	-475.00K	-796.14M	-699.50M	-272.92M	-235.42M
Financing Cash Flow	2.29B	484.59M	301.32M	702.65M	256.53M	304.38M

Salasar Techno Engineering Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.93
• 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:SALASAR, the sentiment is Negative. The current price of 8.93 is above the 20-day moving average (MA) of 8.17, above the 50-day MA of 8.38, and above the 200-day MA of 8.59, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 33.81 is Neutral, neither overbought nor oversold. The STOCH value of 11.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SALASAR.

Salasar Techno Engineering Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SALASAR	69 Neutral	₹12.97B	70.39	―	―	27.20%	-45.92%
YATRA	62 Neutral	₹17.29B	81.87	―	―	82.79%	208.75%
VASCONEQ	61 Neutral	₹8.07B	27.62	―	―	3.46%	159.96%
SPMLINFRA	58 Neutral	₹13.57B	17.55	―	―	-35.16%	115.70%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
VERANDA	38 Underperform	₹16.18B	43.21	―	―	6.02%	2.68%