Salzer Electronics Limited (SALZERELEC) AI Stock Analysis

• Market Cap: ₹13.59B
• Dividend Yield: 0.35%
• Average Volume (3M): 42.24K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.41
• Revenue Growth: 21.51%
• EPS Growth: -17.75%
• Country: IN
• Employees: 749
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 7.35
• Shares Outstanding: 17,682,737
• 10 Day Avg. Volume: 116,994
• 30 Day Avg. Volume: 42,240
• PEG Ratio: 5.75
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -17.32
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹764.00 ▲(5.33% Upside)

Salzer Electronics Limited's overall stock score reflects strong financial performance with robust revenue growth and profitability. However, bearish technical indicators and cash flow challenges weigh on the score. The valuation is fair, but the low dividend yield limits income potential. The absence of earnings call and corporate events data means these factors do not influence the score.

Salzer Electronics Limited Business Overview & Revenue Model

Company Description

Salzer Electronics Limited (SALZERELEC) is a prominent player in the electronic components industry, specializing in the manufacturing and supply of a diverse range of products including electrical switchgear, automation solutions, and control systems. The company serves various sectors such as industrial automation, power generation, and infrastructure development, aiming to deliver innovative and reliable electronic solutions that enhance operational efficiency and safety.

How the Company Makes Money

Salzer Electronics generates revenue through multiple streams primarily by selling its electronic products and solutions to various industries. Key revenue streams include the sale of electrical switchgear, automation equipment, and control systems, which cater to sectors such as manufacturing, energy, and construction. The company also benefits from long-term contracts and partnerships with major industrial players, providing consistent income from recurring orders and service agreements. Additionally, Salzer Electronics invests in research and development to innovate and expand its product offerings, which helps capture new market segments and boosts its revenue potential.

Salzer Electronics Limited Financial Statement Overview

Summary

Salzer Electronics Limited shows strong revenue growth and improving profitability, with a notable increase in gross profit margin. However, challenges in cash flow management and a slight decline in EBITDA margin indicate potential operational inefficiencies. The balance sheet is stable but increasing leverage needs 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 2022	Dec 2021
Income Statement
Total Revenue	15.05B	14.24B	11.64B	10.37B	8.01B	6.21B
Gross Profit	3.83B	3.62B	1.47B	2.23B	1.66B	1.36B
EBITDA	1.63B	1.39B	1.19B	976.18M	615.49M	566.82M
Net Income	695.30M	460.31M	458.75M	387.05M	225.93M	205.17M
Balance Sheet
Total Assets	0.00	11.80B	9.93B	8.95B	7.52B	6.85B
Cash, Cash Equivalents and Short-Term Investments	180.58M	180.58M	182.78M	170.31M	103.34M	134.48M
Total Debt	0.00	4.22B	3.12B	2.82B	2.52B	2.04B
Total Liabilities	-5.53B	6.27B	5.13B	4.82B	3.94B	3.48B
Stockholders Equity	5.53B	5.45B	4.73B	4.08B	3.54B	3.32B
Cash Flow
Free Cash Flow	0.00	-809.62M	-231.82M	-151.33M	-317.92M	-47.84M
Operating Cash Flow	0.00	-112.86M	237.69M	226.73M	-122.37M	137.76M
Investing Cash Flow	0.00	-789.56M	-420.23M	-348.52M	-160.82M	-160.45M
Financing Cash Flow	0.00	905.09M	174.20M	178.22M	261.31M	44.10M

Salzer Electronics Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 725.35
• 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 725.35 is below the 20-day moving average (MA) of 837.06, below the 50-day MA of 818.54, and below the 200-day MA of 937.94, indicating a bearish trend. The MACD of -15.53 indicates Positive momentum. The RSI at 33.45 is Neutral, neither overbought nor oversold. The STOCH value of 3.69 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
WHEELS	74 Outperform	₹22.41B	18.05	―	1.28%	2.22%	29.00%
INDOTECH	72 Outperform	₹17.73B	22.98	―	―	40.81%	56.69%
INDNIPPON	67 Neutral	₹21.12B	24.17	―	1.33%	17.61%	28.12%
HIRECT	66 Neutral	₹31.89B	74.14	―	0.12%	35.05%	99.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SALZERELEC	56 Neutral	₹13.59B	24.40	―	0.35%	21.51%	-17.75%

Salzer Electronics Limited Corporate Events

Salzer Electronics Achieves 22% Revenue Growth in Q2 FY26, Expands Smart Meter Portfolio

Salzer Electronics Limited reported a 22% year-on-year revenue growth for the second quarter of fiscal year 2026, driven by strong performance in its industrial switchgear and building product divisions, as well as significant traction in its smart meter business. The company secured a new patent for a high-voltage application device, highlighting its commitment to innovation. Despite a slight decrease in EBITDA margin due to higher input costs and scaling expenses, Salzer remains optimistic about future profitability improvements. The company’s strategic focus on operational efficiency, working capital optimization, and product portfolio expansion positions it well to capitalize on long-term growth opportunities, supported by government initiatives in smart metering and infrastructure modernization.

Salzer Electronics Ensures Compliance with SEBI Regulations

Salzer Electronics Limited has submitted a certificate under Regulation 74(5) of the SEBI (Depositories & Participants) Regulations, 2018, for the quarter ending September 30, 2025. This submission confirms that the company’s securities have been listed, verified, and appropriately updated in the records, ensuring compliance with regulatory requirements.