Key Financials Snapshot

TTM · Consolidated · ₹ in Cr
Market Cap
₹44 Cr.
Stock P/E
-9.4
P/B
—
Current Price
₹19.4
Book Value
₹ 0
Face Value
1
52W High
₹35.3
52W Low
₹ 17.3
Dividend Yield
0%

Salem Erode Investm. Overview

Business

Salem Erode Investments Ltd. (SALEM) operates as a Non-Banking Financial Company (NBFC) in India. As an NBFC, its core business involves providing various financial services, primarily lending and investment activities, without holding a banking license. Typically, NBFCs cater to specific credit needs and customer segments that may be underserved by traditional banks. The company likely generates its revenue primarily through interest income on loans disbursed (e.g., corporate loans, personal loans, vehicle finance, gold loans, or other asset-backed financing) and potentially through returns on its investment portfolio.

Revenue Mix

Without specific detailed financial reports, the exact revenue mix cannot be determined. However, for a typical NBFC, major revenue components include:

Interest Income: Derived from various lending products offered to individuals, small and medium enterprises (SMEs), or corporate clients. This forms the largest portion of revenue for most NBFCs.

Income from Investments: Returns generated from investments in marketable securities, mutual funds, or other financial instruments.

Fee-based Income: Potentially from processing fees, advisory services, or other non-lending financial activities.

Given its name "Investments Ltd.", it's possible the company also maintains a significant investment portfolio alongside its lending operations.

Industry

The Indian NBFC sector is dynamic, highly competitive, and diverse, comprising a wide range of players from large, diversified entities to smaller, niche-focused companies. It is regulated by the Reserve Bank of India (RBI). Salem Erode Investments Ltd. is likely positioned as a smaller to mid-sized NBFC, possibly with a regional focus (given the names "Salem" and "Erode" which are cities in Tamil Nadu). It competes with numerous other NBFCs, Housing Finance Companies (HFCs), and to some extent, public and private sector banks, particularly in segments like retail and SME lending. Its competitive standing would depend on its specific asset focus, geographic reach, underwriting capabilities, and cost of funds.

MOAT

For an NBFC of potentially smaller scale, durable competitive advantages can be challenging to establish. Common moats like massive scale, strong national brand recognition, or proprietary technology networks may not be prominent. Potential advantages could include:

Niche Focus: Expertise in a specific asset class or serving a particular customer segment with tailored products.

Strong Local Relationships: Deep-rooted connections and trust within its primary operating regions, facilitating business sourcing and recovery.

Efficient Underwriting & Collection: Robust processes for assessing credit risk and managing loan recoveries, especially in its chosen niche.

Cost Efficiency: Lean operational structure allowing for competitive pricing while maintaining profitability.

Without more specific information, it's difficult to ascertain a strong, wide moat; its advantage is likely built on operational execution within its chosen market.

Growth Drivers

Key factors that could drive growth for Salem Erode Investments Ltd. over the next 3-5 years include:

Economic Growth: A robust Indian economy fuels credit demand across various sectors (retail, corporate, SME).

Financial Inclusion: Continued penetration into underserved or unserved customer segments and geographies.

Diversification: Expansion into new asset classes, product offerings, or geographical markets to broaden its customer base and revenue streams.

Digitalization: Leveraging technology for efficient customer acquisition, loan processing, and risk management, reducing operational costs.

Favorable Interest Rate Environment: A stable to declining interest rate regime can improve interest margins and credit demand.

Risks

Asset Quality & Credit Risk: Deterioration in loan quality leading to higher Non-Performing Assets (NPAs) and credit costs, impacting profitability.

Interest Rate Risk: Volatility in interest rates can affect net interest margins, especially if there's a mismatch between asset and liability repricing periods.

Liquidity Risk: Difficulty in raising funds at competitive rates or refinancing existing debt, which is crucial for an NBFC's operations.

Regulatory Risk: Changes in RBI regulations regarding capital adequacy, asset classification, provisioning norms, or lending practices can impact business models and profitability.

Competition: Intense competition from banks and a multitude of other NBFCs can put pressure on lending rates and margins.

Economic Slowdown: A downturn in the broader economy can lead to reduced credit demand and increased loan defaults.

Management & Ownership

Many Indian NBFCs, particularly those not among the largest players, are often promoter-driven. This implies that the vision, strategic direction, and operational execution are significantly influenced by the founding family or key promoter group. Ownership typically comprises the promoter group, institutional investors, and public shareholders. The quality of management is often assessed by their experience in the financial sector, corporate governance practices, risk management capabilities, and their ability to navigate economic cycles and regulatory changes.

Outlook

The outlook for Salem Erode Investments Ltd., like other NBFCs, presents a balanced view of opportunities and challenges. On the upside, India's growing economy and ongoing credit demand, particularly in niche segments where NBFCs excel, offer avenues for expansion. Efficient operations, strong risk management, and a focused strategy on specific asset classes or geographies could enable the company to grow its loan book and profitability. However, the sector faces significant headwinds including intense competition, potential pressure on interest margins, and the ever-present risk of asset quality deterioration, especially during economic fluctuations. Regulatory changes by the RBI also introduce an element of uncertainty. Maintaining adequate liquidity and capital adequacy will be crucial for sustained performance.

Salem Erode Investm. Share Price

Live · BSE · Inception: 1931
₹ | |
Volume
Price

Key Financials — Profit & Loss

₹ in Cr · Consolidated · annual

Salem Erode Investm. Quarterly Results

#(Fig in Cr.)
Net Sales
Other Income
Total Income
Total Expenditure
Operating Profit
Interest
Depreciation
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
Profit After Tax
Adjustments
Profit After Adjustments
Adjusted Earnings Per Share

Salem Erode Investm. Profit & Loss

#(Fig in Cr.) Mar 2016 Mar 2017 Mar 2018 TTM
Net Sales 0 1 1
Other Income 11 0 0
Total Income 11 1 1
Total Expenditure 0 1 0
Operating Profit 11 1 1
Interest 0 0 0
Depreciation 0 0 0
Exceptional Income / Expenses 0 0 0
Profit Before Tax 11 1 1
Provision for Tax 1 0 0
Profit After Tax 10 0 1
Adjustments 0 0 0
Profit After Adjustments 10 0 1
Adjusted Earnings Per Share 6.6 0.3 0.6

Salem Erode Investm. Balance Sheet

#(Fig in Cr.) Mar 2016 Mar 2017 Mar 2018
Shareholder's Funds 16 16 17
Minority's Interest 0 0 0
Borrowings 0 0 0
Other Non-Current Liabilities -0 -0 -0
Total Current Liabilities 3 1 1
Total Liabilities 20 17 18
Fixed Assets 0 0 0
Other Non-Current Assets 12 14 15
Total Current Assets 8 2 2
Total Assets 20 17 18

Salem Erode Investm. Cash Flow

#(Fig in Cr.) Mar 2016 Mar 2017 Mar 2018
Opening Cash & Cash Equivalents 2 4 1
Cash Flow from Operating Activities -2 -1 1
Cash Flow from Investing Activities 4 -2 -1
Cash Flow from Financing Activities -0 -0 -0
Net Cash Inflow / Outflow 1 -3 -0
Closing Cash & Cash Equivalent 4 1 1

Salem Erode Investm. Ratios

# Mar 2016 Mar 2017 Mar 2018
Earnings Per Share (Rs) 6.59 0.28 0.57
CEPS(Rs) 6.6 0.34 0.61
DPS(Rs) 0 0 0
Book NAV/Share(Rs) 11.08 11.15 11.61
Core EBITDA Margin(%) 0 42.5 79.21
EBIT Margin(%) 0 36.69 75.3
Pre Tax Margin(%) 0 36.67 75.29
PAT Margin (%) 0 28.8 58.98
Cash Profit Margin (%) 0 34.62 62.92
ROA(%) 49.01 2.25 4.79
ROE(%) 59.48 2.53 4.99
ROCE(%) 68.39 3.23 6.37
Receivable days 0 0.03 0
Inventory Days 0 0.88 0.28
Payable days 0 223.85 220.57
PER(x) 0 0 0
Price/Book(x) 0 0 0
Dividend Yield(%) 0 0 0
EV/Net Sales(x) 0 -0.09 0.05
EV/Core EBITDA(x) -0.24 -0.21 0.07
Net Sales Growth(%) 0 0 -1.48
EBIT Growth(%) 0 -95.27 102.19
PAT Growth(%) 0 -95.73 101.75
EPS Growth(%) 0 -95.73 101.75
Debt/Equity(x) 0 0 0
Current Ratio(x) 2.19 3.56 3.26
Quick Ratio(x) 2.18 3.56 3.26
Interest Cover(x) 0 2013.62 0
Total Debt/Mcap(x) 0 0 0

Growth Rates

Compounded annual
# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 0% — — —
Operating Profit CAGR 0% — — —
PAT CAGR — — — —
Share Price CAGR -34% -15% +33% —
ROE Average +5% +22% +22% +22%
ROCE Average +6% +26% +26% +26%

Salem Erode Investm. Shareholding Pattern

Latest · Sep 2026
100% held
Promoters 75 %
FII 0 %
DII (MF + Insurance) 0.73 %
Public (retail) 24.27 %
# Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026 Jun 2026 Sep 2026
Promoter 75757575757575757575
FII 0000000000
DII 0.730.730.730.730.730.730.730.730.730.73
Public 24.2724.2724.2724.2724.2724.2724.2724.2724.2724.27
Others 0000000000
Total 100100100100100100100100100100

Salem Erode Investm. Peer Comparison

Finance - NBFC Edit Columns

Salem Erode Investm. Quarterly Price

10-year quarterly close · BSE
Show Value Show %

News & Updates

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Salem Erode Investm. Pros & Cons

Pros

  • Company has a good return on equity (ROE) track record: 3 Years ROE 22%
  • Debtor days have improved from 223.85 to 220.57days.

Cons

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