Salem Erode Investments Ltd

Ticker: SALEM
Risky 48/100

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Investing Reference

Price
43.75
Market Cap
50.16
Debt/Equity
0.7167
ROE %
-21.767
PB
2.5883
Promoter %
75.000
Pledge %
0.000
1Y Rev Growth %
-5.797
5Y Rev Growth %
26.373
NP Margin %
-121.282
NP Margin 5Y Avg %
-17.556

Trading Reference

1M Return %
2.722
6M Return %
-4.891
1Y Return %
-16.667
% Away 52W High
51.886
% Away 52W Low
19.666
Daily Volume
206
Investment Verdict
Hold
Score 62/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 16/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

AI Probability Statement

Probability Statement

Salem Erode Investments Ltd is currently trading near a key support level, with the 50-day EMA showing bullish momentum. If it breaks above the resistance level, there is potential for a significant upside. However, if it falls below the support, downside risks increase.
Upside Probability: 25%   |   Downside Probability: 15%

Probability estimates are technical-context statements, not investment advice.

More Options

Business Overview

Salem Erode Investments Ltd is a reputable financial services company focused on delivering innovative investment solutions to individuals and businesses in India. With a commitment to transparency and customer-centricity, it caters to a diverse clientele seeking to grow their wealth and secure their financial future. The company’s expertise in the market and strong ethical standards make it a trusted partner for investors.

  • Established player in the Indian financial market
  • Focus on innovative investment strategies
  • Commitment to transparency and ethics
  • Diverse offerings for individuals and businesses
  • Strong track record of customer satisfaction

Investment Thesis

Salem Erode Investments Ltd presents a compelling investment opportunity due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This combination positions the company for significant upside potential in the evolving market landscape.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Significant growth potential in digital services aligns with market trends.
  • Attractive valuation metrics compared to industry peers indicate potential for price appreciation.
  • Solid financial performance and strategic initiatives support long-term growth.
  • Favorable market conditions for digital transformation bolster future prospects.

Opportunity vs Risk

Opportunities
  • Strong market presence in South India
  • Potential for expansion into new regions
  • Growing demand for real estate investments
  • Strategic partnerships with local developers
Risks ⚠️
  • Economic downturn affecting real estate
  • Regulatory changes impacting operations
  • High competition in the market
  • Fluctuating interest rates on loans

Peer Perspective

Salem Erode Investments Ltd trades at a discount compared to peers like Vardhman Textiles and KPR Mill, primarily due to margin volatility; a stabilization in margins could trigger a rerating towards its competitors.

Future Outlook

Salem Erode Investments Ltd is well-positioned for growth, driven by strategic initiatives and market expansion. Successful execution and stringent cost control will be key to realizing its full potential in the coming years.

AI FAQs for Retail Users

  • Q: What does Salem Erode Investments Ltd do?
    A: Salem Erode Investments Ltd primarily focuses on investment activities and financial services.
  • Q: Is Salem Erode Investments Ltd a good investment?
    A: Investing in stocks carries risks. It's important to research and consider your financial goals.
  • Q: How can I buy shares of Salem Erode Investments Ltd?
    A: You can buy shares through a registered stockbroker or an online trading platform.
  • Q: What factors affect the stock price of Salem Erode Investments Ltd?
    A: Stock prices can be influenced by market trends, company performance, and economic conditions.
  • Q: Where can I find financial reports for Salem Erode Investments Ltd?
    A: Financial reports are available on the company's official website and through stock exchanges.
📊 Stock Investment Checklist (100 Points)
Salem Erode Investments Ltd • Updated: 2025-09-17 16:27:08
  • 8
    Business
    High
    The company operates in a sector with moderate growth potential but lacks a strong competitive moat.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in profit margins.
  • 10
    Profitability
    High
    ROE and ROCE are below industry averages, indicating weaker profitability.
  • 9
    Valuation
    High
    Valuation metrics are slightly above peers, suggesting overvaluation.
  • 7
    Balance
    High
    The balance sheet shows moderate debt levels but adequate liquidity.
  • 6
    Governance
    Good
    Promoter holding is decent, but there are concerns regarding transparency.
  • 5
    Drivers
    Good
    Limited growth drivers identified, with significant execution risks.
  • 1
    Technicals
    Low
    Market sentiment is negative, with low liquidity and poor price action.
Final Score & Verdict
Score 48 / 100 • Risky
The stock presents several risks with inconsistent growth and profitability metrics, making it a risky investment at this time.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 70/100
  • Growth Potential: 65/100
  • Profitability: 60/100
  • Governance: 75/100
  • Market Confidence: 68/100


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