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Salzer Electronics
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Salzer Electronics Limited was incorporated on January 08, 1985. The Company is among leading players offering Total and Customized Electrical Solutions in Switchgears, Wires & Cables and Energy Management business in India. It caters to a wide range of products with five In-house manufacturing facilities located in Coimbatore.
The Company has a wide distribution network locally and globally, exporting to more than 40 countries. In India, Salzer markets its products through own distributors and more than 350 local distributors of L&T. Promoted by Salzer Group, the Company was established for manufacture of electrical installation products such as CAM operated rotary switches, switch gear products and allied products and is an ongoing concern since then. Prior to this, it was engaged in manufacture of Cam Operated Rotary Switches, Terminal Connectors & On Load Isolators.
The company introduced new products such as 'S' Line series,Phase changing control panels and Switch fuse units in the year 1990. The company has made an entry in Australian Market in 1991 through the dealer VGL IMPEX PTY LTD,Australia and the quality of the products are been well accepted in Singapore,Malaysia,Australia,Greek,USA and Middle East.
The company has commissioned a Wind Mill of 225 KW capacity in the year 1995 at Kathenur in Coimbatore to generate power from the wind for captive consumption.
In 1996, M/s Salzer Exports Pvt Ltd became the subsidiary of Salzer Electronics Limited.Later M/s Salzer Spinners Limited became subsidiary of Salzer Electronics Limited. In the same year,the company had issued Bonus Shares at the ratio of 1:1. Further the company has also issued Right Shares at the ratio of 1:1 immediately after the Bonus Issue. Consequently,the paid up share capital of the company has been increased from Rs.0.72 crores to Rs.2.41 crores after Bonus and followed by the Rights Issue. The present Issued & Paid up Share Capital of the company is Rs.2.75 crores.
The company had amalgamated M/s Salzer Controls Limited(SCL) with the due approval from High Court of Chennai in 2001-02. The present installed capacity of Cam Operated Rotary Switches,Terminal Connectors and On Load Isolators are 10,00,000 nos, 5,00,000 nos, 1,00,000 nos respectively. The Company is also contemplating to develop new products of electro mechanical switches to meet the requirements of the automobile industry. It is also roping with L & T Ltd and Crompton Greaves Ltd for marketing its products both in domestic and international markets.
In 2006-07, the Company established a joint venture company, Salzer Global Services, LLC, which acquired 50% control of M/s. Global Technicaltalent Inc. In 2007, the Company accordingly disinvested its holdings of 2,40,000 equity shares of Rs. 10/- each in M/s.Salzer Exports Ltd for a value of Rs.52.80 lakhs and similarly disinvested 5,36,000 equity shares in Salzer Spinners Limited for a value of Rs. 16.08 lakhs. It established a unit at UNA, Jalgran Tabba, for manufacture of modular switches. It implemented an Energy Saver project in the North Zone of Madurai Municipal Corporation by installing around 375 Energy Saving equipments at a project cost of Rs. 190 lakhs to save the electricity consumption. During the year 2007, a separate company was incorporated by name M/s.Salzer Cables Limited, to implement this project at a project cost of Rs. 1550 lakhs. It invested USD 300,000 in Salzer Global Services LLC, a limited liability company in the State of New Hampshire, USA to further the presence of Salzer in the international market consistently.
With the approval of the shareholders of both Transferor (Salzer Gables Ltd) and Transferee Company (Salzer Electronics Ltd) and also with the sanction of the Hon'ble High Court of Judicature at Madras, the Salzer Cables Ltd was merged with Salzer Electronics Ltd with effect from 01 April, 2008 and consequent upon the Merger, the paid-up capital of the Transferee Company (SEL) increased from Rs. 662.50 lakhs to Rs. 1028.37 lakhs.
In 2014, the Company formed a joint venture, M/s.Salzer Global Services, LLC, USA (SGS) with 40% controlling interest in United States. As part of diversification, M/s. Salzer Global Services, LLC acquired 100% controlling interest in a IT and ITES Corporation viz., M/s.Global Technical Talent, Inc, USA, a leading outsourcing firm providing services for the IT and ITES companies in USA and Canada.
The Company in 2015 entered into a strategic alliance with C3 Controls, and started manufacturing contactors. It innovated and designed two new products, fuse change over system' for railway signalling and track feed battery system' for changing over the battery chargers in the railway track feeding system for the Indian Railways. In FY 2015-16, the Company sold out around 13% stake in Salzer Global Services LLC, USA which is having complete controlling interest in Global Technical Talent, INC, USA.
During the year 2016, Larsen & Toubro Limited, which held 26,79,808 equity shares constituting 26.06% of equity stake in the Company, sold off its entire holdings as a part of its treasury transactions. During Financial year 2016-17, the Company disinvested balance 27% stake in Salzer Global Services LLC, USA taking into account the business exigencies.
In 2018-19, Company acquired the whole of business undertaking of Wire and Cable Segment from Salzer Magnet Wires Limited (SMWL) on slump- sale basis as a going concern in pursuance of Business Transfer Agreement effective March 08, 2019, and resultant, SMWL transferred all its Assets and Liabilities for a total value of Rs 2,029.10 Lakhs for consideration other than cash. M/s. Kaycee Industries Ltd, became a Subsidiary of the Company effective from July 11, 2019.
In 2022, the Company formed a joint venture company named Salzer Kostad EV Chargers Pvt Ltd, with an Austria-based company. The company, through its wholly owned subsidiary, Salzer EV Infra Pvt. Ltd., formed a JV named Salzer EMarch Electromobility Pvt. Ltd., in association with EMarch LLP (IndoAustrian technology firm with abundant resource and knowledge in Electric Conversion Kits & power electronics).
Salzer Electronics share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Salzer Electronics indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Salzer Electronics is valued compared to its competitors.
Salzer Electronics PE ratio helps investors understand what is the market value of each stock compared to Salzer Electronics 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Salzer Electronics evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Salzer Electronics generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Salzer Electronics in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Salzer Electronics shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Salzer Electronics compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Salzer Electronics over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Salzer Electronics helps investors get an insight into when they can enter or exit the stock. Key components of Salzer Electronics Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Salzer Electronics shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Salzer Electronics ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Salzer Electronics provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Salzer Electronics highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Salzer Electronics .
The balance sheet presents a snapshot of Salzer Electronics ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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