Salasar Techno Engineering Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (8.7x coverage).
• Salasar Techno Engineering's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividend payments have increased, but Salasar Techno Engineering only paid a dividend in the past 3 years.
• Salasar Techno Engineering has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
• Salasar Techno Engineering's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Salasar Techno Engineering's earnings are expected to grow significantly at over 20% yearly.
• Salasar Techno Engineering's earnings growth is expected to exceed the India market average.
• Salasar Techno Engineering's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Salasar Techno Engineering's earnings are expected to exceed the low risk growth rate next year.
• Salasar Techno Engineering's revenue growth is expected to exceed the India market average.

Cons

• Salasar Techno Engineering's revenue is expected to grow by 16.6% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Salasar Techno Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Salasar Techno Engineering is profitable, therefore cash runway is not a concern.
• Salasar Techno Engineering is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 2.3x debt.
• Salasar Techno Engineering's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (123.8% vs 85.4% today).
• Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).

Cons

• Operating cash flow is negative therefore debt is not well covered.
• Salasar Techno Engineering's level of debt (85.4%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Salasar Techno Engineering board of directors is about average.
• Alok's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Salasar Techno Engineering management team is about average.

Cons

• Alok's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Salasar Techno Engineering is covered by less than 3 analysts.
• Salasar Techno Engineering has significant price volatility in the past 3 months.

past

Pros

• Salasar Techno Engineering has delivered over 20% year on year earnings growth in the past 5 years.
• Salasar Techno Engineering used its assets more efficiently than the IN Construction industry average last year based on Return on Assets.

Cons

• Salasar Techno Engineering's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Salasar Techno Engineering's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Salasar Techno Engineering has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Salasar Techno Engineering's 1-year earnings growth is negative, it can't be compared to the IN Construction industry average.

value

Pros

• Salasar Techno Engineering is good value based on expected growth next year.
• Salasar Techno Engineering is good value based on earnings compared to the IN Construction industry average.
• Salasar Techno Engineering is good value based on earnings compared to the India market.
• 540642 outperformed the Construction industry which returned -40% over the past year.
• BSE:540642 is up 6.8% along with the Construction industry (7.1%) over the past month.

Cons

• Salasar Techno Engineering's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Salasar Techno Engineering's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Salasar Techno Engineering is overvalued based on assets compared to the IN Construction industry average.
• 540642 underperformed the Market in India which returned -14.5% over the past year.
• BSE:540642 is up 6.8% underperforming the market in India which returned 8% over the past month.