Salem Erode Investments Ltd

Salem Erode Investments Ltd (SALEM) is a micro-cap Financial Services company valued at ₹44 crore operating in NBFC on the NSE and BSE.

Recent price move

Salem Erode Investments Ltd last traded at ₹19.29, modestly down 0.82% on the day.

Recent developments

2026-06-30: Working capital days increased to 224 days from 55.6 days, signaling potential liquidity issues. 2026-06-30: The company has a low interest coverage ratio, indicating difficulty in meeting interest obligations.

Financial performance

The company's business is not improving, with annual net profit showing no change, remaining at a ₹5 crore loss. The latest quarter saw a loss of ₹1 crore, which widened from the same quarter a year earlier. Margins and returns remain negative, with return on equity at -28.6% and return on capital employed at -10.4%, indicating poor profitability.

Valuation multiples

A price-to-earnings ratio is not meaningful here because the company is loss-making; the stock trades at 1.56 times book value.

Things to watch

The company has reported a loss for the latest quarter and the full fiscal year, with no improvement in profitability. Working capital days have more than quadrupled, raising concerns about liquidity. The company's return on equity and return on capital employed are negative, showing poor capital utilization.

Where it stands

Salem Erode Investments Ltd remains in a loss position, with no improvement in net profit over the past year or quarter. The most significant movement is the sharp increase in working capital days, which highlights liquidity challenges. The company's financial performance and operational efficiency remain weak.

Summarised by DocStoX's model on 2026-09-10 from company filings, exchange data and news. This is a factual summary, not a rating or a recommendation. Informational only, not investment advice. Consult a SEBI-registered adviser before investing.