Salasar Techno Engineering Ltd. (SALASAR) AI Stock Analysis

• Market Cap: ₹12.13B
• Dividend Yield: N/A
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): 70.4
• Beta (1Y): 1.23
• 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: 56 Neutral
• Price Target: ₹7.50 ▼(-16.01% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is primarily supported by solid revenue growth and a reasonably leveraged balance sheet, but is held back by weak cash-flow generation and a sharp decline in net income. Technical indicators add downside risk (downtrend across key moving averages with negative MACD), and valuation is a headwind given the very high P/E and no dividend yield data.

Positive Factors

Revenue Growth

Sustained multi-year revenue growth more than doubles scale, indicating durable demand for fabricated steel and EPC services. Larger revenue base supports operational leverage, better negotiating power with suppliers, and a stronger position to win larger transmission and infrastructure contracts over the medium term.

Prudent Leverage

A modest debt-to-equity ratio and strengthened equity base provide financial flexibility for capex and bidding on EPC projects. Conservative leverage reduces refinancing risk during cyclical downturns and supports investment in manufacturing capacity and working-capital needs tied to project execution timelines.

Consistent Gross Margins

Stable gross margins in a steel-fabrication business imply resilient manufacturing economics and value-added services. Consistent margins support sustainable EBITDA over cycles, enabling reinvestment in galvanizing, design, and erection capabilities that underpin long-term competitive advantage in EPC contracts.

Negative Factors

Weak Free Cash Flow

Recurring negative free cash flow signals structural cash-generation issues from operations or heavy working-capital needs tied to project timing. Persistent cash shortfalls can limit reinvestment, force reliance on external financing for growth, and increase vulnerability to project delays or contractor disputes.

Earnings/Margin Pressure

A sharp fall in net income and compressed operating margins suggest rising input costs, execution inefficiencies, or higher financing expense. If structural, these trends erode earnings power, reduce funds available for capex or deleveraging, and weaken competitiveness on margin-sensitive EPC bids.

Rising Debt & Liabilities

An uptick in total debt and liabilities despite a moderate D/E ratio indicates growing leverage needs, possibly to fund working capital or capex. Continued increases could raise interest burden, constrain liquidity during project slippages, and reduce strategic flexibility to pursue larger contracts.

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

Strong multi-year revenue growth and a solid equity position support the score, but the sharp drop in net income in 2025 and persistently negative/erratic free cash flow (including -INR 599m in 2025) meaningfully weaken financial quality.

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: Neutral

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 7.44, above the 50-day MA of 7.97, and above the 200-day MA of 8.49, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 32.73 is Neutral, neither overbought nor oversold. The STOCH value of 23.58 is Neutral, 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
YATRA	62 Neutral	₹16.83B	81.87	―	―	82.79%	208.75%
VASCONEQ	61 Neutral	₹7.25B	27.62	―	―	3.46%	159.96%
SPMLINFRA	58 Neutral	₹12.70B	17.55	―	―	-35.16%	115.70%
SALASAR	56 Neutral	₹12.13B	70.39	―	―	27.20%	-45.92%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
VERANDA	41 Neutral	₹13.23B	43.21	―	―	6.02%	2.68%