Sal Automotive Ltd

Sal Automotive Ltd maintains a debt-to-equity ratio of 0.55, indicating a moderate reliance on debt financing, while its current ratio of 1.06 suggests limited short-term liquidity cushion. The company’s cash and equivalents of INR 6.3 million are significantly lower than its long-term debt of INR 236.7 million, resulting in a net cash position that is negative after subtracting total debt [doc:HA-latest]. Free cash flow of INR 20.1 million in the latest period reflects constrained liquidity, with capital expenditures of INR -65.9 million indicating active reinvestment in operations [doc:HA-latest]. Profitability metrics show a return on equity (ROE) of 12.54% and return on assets (ROA) of 4.38%, both below the industry median for the Auto, Truck & Motorcycle Parts sector. The net income of INR 53.96 million on revenue of INR 3.78 billion yields a net margin of 1.43%, which is weak compared to peers. Gross profit of INR 765.4 million on revenue of INR 3.78 billion implies a gross margin of 20.26%, also below the sector median [doc:HA-latest]. The company operates in two segments: Automobile Components and Agriculture Implements. Revenue concentration data is not disclosed, but the dual focus suggests diversification across vehicle and agricultural markets. Geographically, all manufacturing is based in India, with plants in Punjab, Karnataka, Uttarakhand, and Maharashtra, indicating no material international exposure [doc:HA-latest]. Growth trajectory is modest, with no specific revenue delta provided in the outlook. Historical revenue of INR 3.78 billion reflects a stable but non-explosive growth path. The company’s operating income of INR 84.58 million and net income of INR 53.96 million suggest limited margin expansion potential in the near term [doc:HA-latest]. Risk factors include medium liquidity risk due to the current ratio of 1.06 and negative net cash position. Dilution risk is assessed as low, with no near-term pressure from share issuance or ATM programs. Adjustments in the valuation model reflect conservative assumptions about cash flow sustainability [doc:HA-latest]. Recent events include no material filings or transcripts disclosed in the input data. The company’s risk profile remains stable, with no significant regulatory or geopolitical exposure flagged in the industry configuration [doc:verified market data].