Salasar Techno Engineering Ltd. (SALASAR) AI Stock Analysis

• Market Cap: ₹12.62B
• Dividend Yield: N/A
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): 70.4
• Beta (1Y): 1.30
• 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

Sustained Revenue Growth

Multi-year revenue expansion more than doubled between 2021 and 2025, indicating durable demand for Salasar’s steel fabrication and EPC offerings. Persistent top-line growth supports scale benefits, backlog depth and reinforces capacity utilisation that can sustain margins and competitive bids over 2-6 months.

Prudent Leverage and Equity Base

A moderate debt-to-equity ratio (~0.40) with a strengthening equity ratio suggests conservative financial policy and capital buffer. This balance enhances resilience to project timing risks and raw-material cycles, preserving access to capital for new contracts and capex without stressing liquidity over the medium term.

Integrated Manufacturing + EPC Model

Owning fabrication, galvanizing and EPC capabilities creates vertical integration advantages: better margin capture, control over delivery schedules, and differentiation on turnkey scopes. This structural business mix supports repeat project wins and long-term customer relationships in transmission and telecom sectors.

Negative Factors

Weak Free Cash Flow

Repeated negative free cash flow, including INR 599m in 2025, signals that earnings are not reliably converting to cash. Over several months this can constrain funding for working capital, slow supplier payments, or force reliance on financing, increasing execution risk on large EPC projects.

Margin and Net Income Pressure

A decline in operating margins and a material net income drop in 2025 point to cost inflation, project overruns or pricing pressure. Margin erosion reduces cushion against raw-material swings and raises breakeven for new contracts, weakening sustainable profitability over the coming quarters.

Earnings Volatility

A sharply negative EPS growth rate (~-52%) reflects volatile profitability and potential one-off charges or higher finance costs. Persistent earnings volatility undermines predictability for reinvestment and makes covenant compliance and long-range planning harder for management across 2-6 months.

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 primarily makes money by (1) manufacturing and selling fabricated steel structures and components, and (2) executing project-based EPC/turnkey contracts. Key revenue streams typically include: (a) supply of lattice towers and other steel structures to utilities and telecom/infrastructure customers, where revenue is recognized from the sale/delivery of manufactured goods; (b) EPC or turnkey project execution, where SALASAR earns contract revenues for end-to-end delivery (engineering/design, procurement of inputs, fabrication, logistics, site activities such as erection/installation, and commissioning), with earnings driven by project milestones and overall project margins; and (c) value-added services tied to these offerings (e.g., design/engineering, galvanizing, and erection services) when contracted separately or bundled in turnkey scopes. Significant earnings drivers are typically order inflows from power transmission, telecom, and infrastructure capex cycles, the company’s execution capacity and on-time delivery, and raw-material (steel) price dynamics that influence gross margins. Specific details on revenue mix by segment, named large customer partnerships, or exact contract structures are null.

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	15.86B	14.47B	12.07B	10.05B	7.19B	5.97B
Gross Profit	2.60B	1.81B	1.69B	1.88B	1.29B	822.36M
EBITDA	1.31B	1.11B	1.21B	935.67M	711.59M	671.29M
Net Income	310.51M	191.05M	529.33M	401.71M	314.45M	296.47M
Balance Sheet
Total Assets	18.48B	17.25B	11.51B	9.14B	6.83B	5.53B
Cash, Cash Equivalents and Short-Term Investments	2.86B	528.78M	26.71M	4.78M	3.31M	106.14M
Total Debt	3.50B	3.17B	3.50B	2.73B	2.49B	1.98B
Total Liabilities	10.35B	9.39B	7.00B	5.13B	4.00B	3.00B
Stockholders Equity	8.12B	7.86B	4.50B	4.01B	2.82B	2.53B
Cash Flow
Free Cash Flow	85.82M	-599.39M	-40.55M	-696.44M	-252.31M	-340.63M
Operating Cash Flow	198.54M	-476.78M	516.56M	-1.65M	14.92M	-71.27M
Investing Cash Flow	-191.44M	-475.00K	-796.14M	-699.50M	-272.92M	-235.42M
Financing Cash Flow	-16.78M	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 7.92, above the 50-day MA of 8.23, and above the 200-day MA of 8.56, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 34.50 is Neutral, neither overbought nor oversold. The STOCH value of 11.21 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	₹12.62B	70.39	―	―	27.20%	-45.92%
YATRA	62 Neutral	₹16.43B	81.87	―	―	82.79%	208.75%
VASCONEQ	61 Neutral	₹7.93B	27.62	―	―	3.46%	159.96%
SPMLINFRA	58 Neutral	₹13.16B	17.55	―	―	-35.16%	115.70%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
VERANDA	38 Underperform	₹14.62B	43.21	―	―	6.02%	2.68%