1. At a Glance
Salasar Techno is an EPC infra company turned serial acquirer, trying to hold its steel empire together. Between aggressive mergers, negative Q4 PAT, and an 86% stock price fall from its 52-week high, investors are asking—is this a turnaround bet or a collapsing tower?
2. Introduction with Hook
Imagine building skyscrapers with LEGO while riding a roller coaster. That’s Salasar Techno right now. From towers to railways to solar EPC—everything looks good on a pitch deck.
But in Q4 FY25, net profit = -₹5.23 Cr
Meanwhile, the company continues its acquisition spree, scooping up EMC Ltd and Hill View Infrabuild.
So is this a steel-frame empire in the making… or a house of cards?
3. Business Model (WTF Do They Even Do?)
| Segment | Description |
|---|---|
| Telecom Towers | Steel structures for mobile networks |
| Railway Electrification | EPC work in railway infrastructure |
| Transmission Lines | Fabrication, design, EPC of T&D lines |
| Solar | EPC services for solar power installations |
Core Identity:
Steel structures + EPC + Expansion via M&A deals
Customer Base:
BSNL, Indian Railways, Power Grid, NTPC, Adani, L&T
4. Financials Overview
| FY | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | OPM % | EPS |
|---|---|---|---|---|---|
| FY21 | ₹597 | ₹57 | ₹30 | 10% | ₹0.21 |
| FY22 | ₹719 | ₹69 | ₹31 | 10% | ₹0.22 |
| FY23 | ₹1,005 | ₹92 | ₹40 | 9% | ₹0.25 |
| FY24 | ₹1,208 | ₹122 | ₹53 | 10% | ₹0.34 |
| FY25 | ₹1,447 | ₹113 | ₹19 | 8% | ₹0.11 |
🧨 FY25 profits halved
💣 FY25 Q4: -₹5.23 Cr PAT
📉 Margins trending down post-acquisitions
5. Valuation
| Metric | Value |
|---|---|
| EPS TTM | ₹0.11 |
| P/E | 57.6x |
| Book Value | ₹4.55 |
| CMP | ₹7.81 |
| P/B | 1.7x |
EduFair Valuation Range: ₹3–₹6
(Current P/E implies wild optimism not backed by earnings)
6. What’s Cooking – News, Triggers, Drama
🔥 EMC Ltd Acquisition: Completed for ₹168 Cr
🔥 Hill View Infrabuild Merger: Approved Dec 2024
🔥 Elegant Forge MoU: Signed Feb 2025
💣 ED Raids (Apr 2025): Chairman & JMD residences searched
📉 Q4 FY25 net loss: -₹5.23 Cr
📊 Rating upgraded to “IVR A / Positive” by Infomerics in Sep 2024
Theme = Expansion, Expansion, Expansion
But can they digest it all?
7. Balance Sheet
| FY | Net Worth | Borrowings | Other Liabilities | Total Assets |
|---|---|---|---|---|
| FY22 | ₹282 Cr | ₹249 Cr | ₹152 Cr | ₹683 Cr |
| FY24 | ₹450 Cr | ₹350 Cr | ₹351 Cr | ₹1,151 Cr |
| FY25 | ₹786 Cr | ₹317 Cr | ₹622 Cr | ₹1,725 Cr |
🧱 Equity capital doubled via warrant conversion
⚠️ Debt is high, but not exploding
🧨 Other liabilities (likely payables) nearly doubled
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY22 | ₹1 Cr | -₹27 Cr | ₹26 Cr | ~₹0 Cr |
| FY23 | ₹-0.1 Cr | -₹70 Cr | ₹70 Cr | ~₹0 Cr |
| FY24 | ₹52 Cr | -₹80 Cr | ₹30 Cr | ₹2 Cr |
| FY25 | ₹-5 Cr | ₹10 Cr | ₹-3 Cr | ₹1 Cr |
🧂 Operating cash flow = inconsistent
📉 Heavy capex + acquisitions = stress on cash
🛑 Barely any net cash increase
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE % | 4.0% | 3.8% | 3.79% |
| ROCE % | 14% | 16% | 10.5% |
| Debt/Equity | 0.74 | 0.77 | 0.40 |
| OPM % | 9% | 10% | 8% |
| Inventory Days | 186 | 163 | – |
| CCC (days) | 254 | 211 | 117 |
📉 ROE still below 4%
📦 Cash conversion cycle improving = Good sign
💥 EPS fell from ₹0.34 to ₹0.11
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT | OPM % | NPM % |
|---|---|---|---|---|---|
| FY23 | ₹1,005 Cr | ₹92 Cr | ₹40 Cr | 9% | 4% |
| FY24 | ₹1,208 Cr | ₹122 Cr | ₹53 Cr | 10% | 4.3% |
| FY25 | ₹1,447 Cr | ₹113 Cr | ₹19 Cr | 8% | 1.3% |
🧮 FY25 sales up 20%
💣 PAT down 64% — not good
🩺 EPS bleeding = time to cut fat, not raise steel
11. Peer Comparison
| Company | CMP | P/E | ROE % | OPM % | PAT ₹ Cr |
|---|---|---|---|---|---|
| Kaynes Tech | ₹5,853 | 133.5 | 11% | 15% | ₹293 Cr |
| Honeywell | ₹40,470 | 68.3 | 13.7% | 14% | ₹523 Cr |
| Jyoti CNC | ₹1,021 | 71.9 | 21.2% | 27% | ₹322 Cr |
| Salasar | ₹7.81 | 57.6 | 3.8% | 7.8% | ₹19 Cr |
💡 Salasar’s earnings profile is nowhere near these giants—yet trades at a hefty multiple.
12. Miscellaneous – Shareholding, Promoters
| Holder | Sep 2022 | Jun 2024 | Mar 2025 |
|---|---|---|---|
| Promoter | 63.07% | 55.97% | 50.95% |
| FIIs | 12.18% | 8.42% | 5.21% |
| Public | 24.74% | 35.60% | 43.83% |
📉 Promoter stake falling rapidly
📉 FII interest also cooling
📈 Public shareholding surged (via warrants?)
13. EduInvesting Verdict™
Salasar Techno looks like an infrastructure company trying to go “techie.” They’re growing revenue and grabbing distressed assets—but earnings are suffering and red flags are waving.
So what do we see?
✅ Steel structure DNA
✅ EPC presence across key sectors
🚨 Q4 PAT negative
🚨 Promoter selling
🚨 High valuation with collapsing earnings
What we’re watching:
- Post-merger margin improvement
- New order book size post Q1
- Promoter buying (not selling)
EduFair Range: ₹3 – ₹6
(Current CMP = ₹7.81 = Above comfort zone)
Metadata
– Written by EduInvesting Research | 20 July 2025
– Tags: Salasar Techno Engineering, Steel Structures, EPC, Railways, Telecom Infra, Merger with EMC, Infra Stocks, Promoter Selling, ED Raids, EPS Collapse
