Salem Erode Investments Ltd

SALEMNon Banking Financial Company (NBFC)
34.90+0.00 (+0.00%)
As on 21 Jan 2026, 08:45 amMarket Closed

Fundamental Score

...

Salem Erode Investments Ltd Share Price Live NSE/BSE

No data
High
0.00
Low
0.00
Volume
0
Change
+0.00%

Profitability Metrics

Poor

Return on Equity

-21.72%
Poor

Return on Capital Employed

-6.67%
Excellent

Operating Profit Margin (5Y)

30.05%
Poor

Dividend Yield

0.00%

Valuation Metrics

Price to Earnings

N/A

Market Capitalization

47.64 (Cr)

Industry P/E

22.03x

Growth Metrics

Poor

YoY Quarterly Profit Growth

-41.18%
Poor

YoY Quarterly Sales Growth

-25.83%
Excellent

Sales Growth (5Y)

26.37%

EPS Growth (5Y)

N/A

Profit Growth (5Y)

N/A

Financial Health

Excellent

Debt to Equity

0.06x
Poor

Interest Coverage

-1.50x
Average

Free Cash Flow (5Y)

5.13 (Cr)

Ownership Structure

Good

Promoter Holding

75.00%
Poor

FII Holding

0.00%
Poor

DII Holding

0.73%
Excellent

Pledged Percentage

0.00%
Market-cap Classification
Small-cap
Higher growth potential with higher volatility.
75.00%
Promoter Holding
47.64 (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of SALEM across key market metrics for learning purposes.

Positive Indicators

5 factors identified

Strong Operating Margins (30.05%)

Observation: Healthy 5-year operating margins indicate pricing power and cost control.

Analysis: OPM >15% suggests operational efficiency and competitive advantages. This indicates sustainable profitability potential.

Consistent Growth Track Record (26.37% CAGR)

Observation: Strong 5-year sales compound annual growth rate.

Analysis: Consistent sales CAGR >12% demonstrates sustainable growth model and market opportunity execution over time.

Conservative Debt Levels (D/E: 0.06)

Observation: Low leverage provides financial flexibility and reduced risk.

Analysis: Conservative debt structure offers resilience during economic downturns and flexibility for growth investments.

Balanced Promoter Holding (75.00%)

Observation: Optimal balance between promoter control and public float.

Analysis: Promoter holding in 50-75% range provides management alignment while ensuring adequate liquidity.

Zero Share Pledging Risk

Observation: No promoter shares pledged as collateral, reducing forced-selling risk.

Analysis: Absence of share pledging eliminates potential forced-selling pressure during market stress.

Risk Factors

9 factors identified

Below-Average Return on Equity (-21.72%)

Observation: Returns on equity are below industry benchmarks.

Analysis: ROE <10% may indicate inefficient capital utilization. Consider monitoring for operational improvements and management effectiveness.

Suboptimal ROCE (-6.67%)

Observation: Returns on capital employed are below expectations.

Analysis: ROCE <10% suggests potential inefficiencies in capital allocation. Review business model and competitive positioning.

Profit Decline Concern (-41.18%)

Observation: Significant year-over-year profit contraction observed.

Analysis: Declining profitability requires investigation into underlying causes. Monitor for recovery signs and management guidance.

Revenue Contraction (-25.83%)

Observation: Sales decline may indicate market challenges or competitive pressures.

Analysis: Negative revenue growth requires analysis of market conditions and competitive positioning. Monitor recovery strategies.

Weak Interest Coverage (-1.50x)

Observation: Limited ability to service debt obligations from earnings.

Analysis: Low interest coverage raises concerns about financial stability. Monitor cash flow and debt reduction plans.

Limited Institutional Interest (FII+DII: 0.73%)

Observation: Low institutional participation may affect liquidity and visibility.

Analysis: Limited institutional interest may indicate size constraints or visibility issues in the investment community.

No Dividend Distribution

Observation: Company does not currently pay dividends to shareholders.

Analysis: Zero dividend yield may indicate growth reinvestment focus or cash flow constraints. Assess capital allocation strategy.

Very Low ROE

Observation: Poor capital utilization and shareholder returns.

Analysis: ROE below 5% suggests significant inefficiencies in capital deployment.

Small Market Cap

Observation: Higher investment risk due to limited size.

Analysis: Small-cap stocks typically carry higher volatility and liquidity risks.

Financial Statements

Comprehensive financial data for Salem Erode Investments Ltd

About SALEM

Business Overview

Salem Erode Investments Limited was incorporated in 1931.

Company Details

Symbol:SALEM
Industry:Non Banking Financial Company (NBFC)
Sector:Non Banking Financial Company (NBFC)

Key Leadership

H.E Kuzhuppilly Govinda-Menon Anilkumar
MD & Executive Director
Mr. Madhavankutty Thekkedath
Chief Financial Officer
Mr. Visakh Thazhathu Veedu
Company Secretary & Compliance Officer

SALEM Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)-21.72%
Return on Capital Employed-6.67%
Operating Profit Margin (5Y)30.05%
Debt to Equity Ratio0.06
Interest Coverage Ratio-1.50

Growth & Valuation

Sales Growth (5Y)26.37%
Profit Growth (5Y)N/A%
EPS Growth (5Y)N/A%
YoY Quarterly Profit Growth-41.18%
YoY Quarterly Sales Growth-25.83%

Frequently Asked Questions

What is the current price of Salem Erode Investments Ltd (SALEM)?

As of 21 Jan 2026, 08:45 am IST, Salem Erode Investments Ltd (SALEM) is currently trading at ₹34.90. The stock has a market capitalization of ₹47.64 (Cr).

Is SALEM share price Overvalued or Undervalued?

SALEM is currently trading at a P/E ratio of 0.00x, compared to the industry average of 22.03x. Based on this relative valuation, the stock appears to be Fairly Valued against its sector peers.

What factors affect the Salem Erode Investments Ltd share price?

Key factors influencing SALEM's price include its quarterly earnings growth (Sales Growth: -25.83%), raw material costs, government infrastructure spending, and institutional flows (FII/DII holding).

Is Salem Erode Investments Ltd a good stock for long-term investment?

Salem Erode Investments Ltd shows a 5-year Profit Growth of N/A% and an ROE of -21.72%. Long-term investors should consider these fundamentals alongside the debt-to-equity ratio of 0.06 before investing.

How does Salem Erode Investments Ltd compare with its industry peers?

Salem Erode Investments Ltd competes with major peers in the Non Banking Financial Company (NBFC). Investors should compare SALEM's P/E of 0.00x and ROE of -21.72% against the industry averages to determine its competitive standing.

What is the P/E ratio of SALEM and what does it mean?

SALEM has a P/E ratio of N/Ax compared to the industry average of 22.03x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹N/A for every ₹1 of annual earnings.

How is SALEM performing according to Bull Run's analysis?

SALEM has a Bull Run fundamental score of 24/100, which indicates concerns that require careful analysis. This comprehensive rating is based on 15+ financial parameters including profitability, growth metrics, and valuation ratios.

What sector and industry does SALEM belong to?

SALEM operates in the Non Banking Financial Company (NBFC) industry. This classification helps understand the competitive landscape and sector-specific trends affecting Salem Erode Investments Ltd.

What is Return on Equity (ROE) and why is it important for SALEM?

SALEM has an ROE of -21.72%, which suggests challenges in generating returns from shareholders' equity. Return on Equity measures how efficiently Salem Erode Investments Ltd generates profits from shareholders' equity.

How is SALEM's debt-to-equity ratio and what does it indicate?

SALEM has a debt-to-equity ratio of 0.06, which indicates conservative financing with low financial risk. A ratio below 1.0 generally indicates conservative financing.

What is SALEM's dividend yield and is it a good dividend stock?

SALEM offers a dividend yield of 0.00%, which means you receive ₹0.00 annual dividend for every ₹100 invested.

How has SALEM grown over the past 5 years?

SALEM has achieved 5-year growth rates of: Sales Growth 26.37%, Profit Growth N/A%, and EPS Growth N/A%.

What is the promoter holding in SALEM and why does it matter?

Promoters hold 75.00% of SALEM shares, with 0.00% of promoter shares pledged. High promoter holding often indicates strong management confidence.

What is SALEM's market capitalization category?

SALEM has a market capitalization of ₹48 crores, placing it in the Small-cap category.

How volatile is SALEM stock?

SALEM has a beta of N/A. A beta > 1 suggests the stock is more volatile than the market, while a beta < 1 suggests it is less volatile.

What is the 52-week high and low for SALEM?

SALEM has a 52-week high of ₹N/A and low of ₹N/A.

What is SALEM's operating profit margin trend?

SALEM has a 5-year average Operating Profit Margin (OPM) of 30.05%, indicating the company's operational efficiency.

How is SALEM's quarterly performance?

Recent quarterly performance shows YoY Sales Growth of -25.83% and YoY Profit Growth of -41.18%.

What is the institutional holding pattern in SALEM?

SALEM has FII holding of 0.00% and DII holding of 0.73%. Significant institutional holding often suggests professional confidence in the stock.