Salzer design, develop, manufacture and supply CAM operated Rotary Switches, Selector switches, Wiring Ducts, Voltmeter Switches & Allied products. Company’s prominent clients include Schneider, GE, Philips, Larsen & Toubro, LMW, Premier, Valeo, Europa, V-Guard, BHEL,Elgi, ABB, Eaton, Yokogawa, Nuclear Power Corporation, SEARS, CED and Alstom etc.
- Salzer is the largest manufacturer of rotary switches and cable ducts in India.
- Turnover CAGR of 21% over the last ten years ending 2016-17.
- Company enjoys a profit-making track record for 25 years
- Declaring dividends since 1991.
- Salzer’s products are exported to 40+ countries
- Exports account 18% of the company’s revenues, 2016-17.
- Industrial switch gear contribute 45.8% of total revenue of FY17
- Wires & Cables contribute 45.6% of total revenue of FY17
- Company is Focusing on new vertical of energy-efficient products.
- 35% to 40% of the Company’s product off take is done by L&T.
- 4 manufacturing facilities in Tamil Nadu.
- M-cap: INR 346 cr
- CMP: 239 INR (12th Dec 2017)
- PE: 19.8
- EPS:12 INR
- Book Value: 153 INR
- Share capital is 14.35 cr of FV 10.
- Promoter Share holding is 28.68 %
- FII/DII Share holding is 10.68 %
- Company intend to enhance it’s EBITDA margin by 100 bps and ROCE to around 18% in three years.
- The company is going to add new products in its portfolio like: Miniature circuit, Distribution boards, Sealing products, plugs and sockets.
- Company is entering the Western and Northern parts of India by expanding the distribution network
- In next 2-3 years this stock can deliver multibagger returns.
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