Salzer Electronics Limited (SEL) is among leading players offering Total and Customized Electrical Solutions in Switchgears, Wires & Cables and Energy Management business in India. The Company is the largest manufacturer of CAM Operated Rotary switches & Wire Ducts in India, with a market share of 25% & 20% respectively. The Company caters to a wide range of products with five In-house manufacturing facilities located in Coimbatore. The Company has a wide distribution network locally and globally, exporting to more than 50 countries. In India, Salzer markets its products through its own distributors and more than 350 local distributors of L&T.

Recommendation PRICE RANGE Target Price Time Horizon
Buy Rs. 408 Rs. 520 12 Months



Stock Details

Market Cap. (Cr.) 703.13
Equity (Cr.) 16.18
Face Value 10
52 Wk. high/low 431 / 221
BSE Code 517059
Book Value (Rs.) 249.09
Industry Electric Equipment
P/E 17.71


Share Holding Pattern %


FIIs 9.85
Institutions 0.14
Non Promoter Corp. 5.76
Public & Others 49.14
Government 0.00
Total 100.00



Key Investment Rationale:

  • SEL is India’s largest manufacturer of CAM operated rotary switches (25% market share) and wire ducts (20% market share), and a preferred supplier to marquee capital goods and EPC companies (including L&T, Schneider Electric, BHEL, Nuclear Power Corp, Indian Railways, ABB, General Electric, Honeywell, Siemens, and others). The switchgears section accounts for 55-57% of total income, with the remainder coming from the copper wires & cables (37-40%), construction materials (5- 10%), and Building Products (less than 7%).
  • Make in India, China+1, and PLI schemes in different industries are projected to increase manufacturing in India, which would also necessitate a suitable rail/road and electricity infrastructure. It will increase capital goods demand.
  • SEL has created a joint venture (JV) with Austria’s Kostad Steuerungsbau GmbH (Kostad) to produce DC fast charging stations for EVs. With support of the technology partner, Kostad, the Company has developed the product and tested successfully. The product is under approval process from Regulators, and efforts are being made to roll out in the market before end of third quarter. Therefore, the expansion in the EV charging area is enormous. SEL holds 37.40% in Salzer Kostad.
  • Salzer EV Infra Private Limited (Wholly owned subsidiary) and Salzer EMarch Electromobility Mobility Pvt. Ltd (Step down subsidiary) formed a JV in association with EMarch LLP. This JV is engaged in manufacturing electric conversion kits for auto-rickshaws, cars and buses and also the manufacture novel electric driven utility vehicles. This significantly lowers the cost of ownership and coupled with the battery swapping technology (lower opex) promises to be a significant game changing business model. SEL hold 98% in this JV.


Salzer Electronics Ltd (SEL) is a proxy play on the increasing demand given the positive prognosis for electricity generation and accompanying infrastructure expansion. The replacement of low KVA transmission lines with high KVA lines, electrification of trains, development of industrial corridors, Metro Rail projects and SMART City development would all increase demand for electrical components and switchgears. SEL has also entered into two strategic JVs in EV space, these JVs offer significant business potential.


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