Salzer Electronics Ltd. share price target

Highly innovative electronics player poised to accelerate

Switching gears for momentous growth

Salzer Electronics (SZE) in 3QFY18 posted revenues of Rs. 101 Cr (up 22% Y-o-Y, up 10% Q-o-Q) due to good pickup in industrial switchgears and higher demand in agri market cables.

Salzer Electronics (SZE) in 3QFY18 posted revenues of Rs. 101 Cr (up 22% Y-o-Y, up 10% Q-o-Q) due to good pickup in industrial switchgears and higher demand in agri market cables.

Salzer Electronics Ltd's (SEL) revenues and earnings for Q4FY17 came in at Rs 112 Cr (up 13.3% Y-o-Y and 23.2% Q-o-Q) and Rs 3.6 Cr (down 9.2%/10.3% Y-o-Y/ Q-o-Q) respectively.

SEL had a subdued performance in 1QFY17 with revenue de-growth of 1%/8.8% YoY/QoQ, respectively, to Rs 901mn led by contribution of industrial switchgears (46%), wire & cable (48%), building (3.8%) and energy management (2.1% vs 17% in 1QFY16). EBITDA stood at Rs 108mn a YoY/QoQ growth of -12.7%/12.2% with EBITDA margins at 12%, an expansion of -160bps/225bps YoY/QoQ respectively, mainly due to lower contribution from energy management segment and higher...

Buy Salzer Electronics Ltd CMp at Rs. add on dips Rs. 224 - 207 for the Target of Rs. 248 - 275

Well positioned to ride on recovery in domestic Capital Expenditure cycle: SEL, starting as single product company, today has emerged as global player operating in 40 countries with more than 10 SKU's in the segment. SEL commands ~20% market share in industrial switchgear segment in India. The company spends ~4-5% of its revenues on R&D; to develop new products. It owns one patent for rotary switches and 5 more product patents are in process of approval. In addition, it has Joint venture with C3Controls for contactors and relays. SEL's products are internationally certified and have universal acceptance. With strong research base and technological tie-ups, SEL is a preferred supplier to various leading companies like GE, Schneider,...

Valuation: At CMP of Rs 202 the stock is trading at 16.2x/12.9x/9.4x of FY16p/17e/18e EPS. We expect, Salzer preferred supplier to GE, Schneider and Indian Railways and with new tie-ups will continue to grow its...

Salzer Electronics Ltd. (SEL) continued robust growth in 2QFY16 with revenue growth of 19.4%/-11.2% YoY/QoQ, respectively, to Rs 809mn led by higher contribution from industrial switchgears (55%). EBITDA...

Salzer Electronics (SEL) reported robust 1QFY16 result with revenue growth of 32.7% /17.7% YoY/QoQ respectively to Rs 911mn led by higher contribution from industrial switchgears (44%) and energy...

Salzer Electronics is a leading player offering Total and Customized Electrical Solutions in Switchgears, Wires & cables, Energy Management business. It is the largest manufacturer of CAM Operated Rotary switches, with a market share of 25%. The Company caters to a wide range of products with five in-house manufacturing facilities, located in Coimbatore and Himachal Pradesh. Engineering giant Larsen & Toubro (L&T;) owns 26% in SEL (strategic investment) with two directors on the board. Long term association with L&T; offers...

We initiate coverage on Salzer Electronics (SEL) with a BUY rating and a price target of Rs 330 implying 39% upside. SEL is mainly present in to industrial switchgear, wire & cable, building segment...