Salzer Electronics

I went through the recent concall but am not able to understand why this is now close to 52 week low. Vijay Kedia seems to have exited last year. Seems to be oversold to me and am thinking of taking a position here. Any idea what’s cooking here?

Disc - Not part of my portfolio yet.

Recently Promoters Holding have increased to 31% . Promoters are bullish on the companies prospect. 3 new investors too have added in last two quarters having more than 2% stake.
Disc- Invested

As per new Shareholding data Insiders holdings have increased.

https://www.bseindia.com/corporates/shpSecurities.aspx?scripcd=517059&qtrid=101.00&Flag=New

Salzer entered into a joint venture with Kostad Steuerungsbau GmbH to manufacture DC Fast charging stations for electric vehicles (EV).

Salzer entered new JV with E-March LLP to manufacture electric conversion kits for vehicles

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Q3 Update:
Approximate realisation for conversion kit has been raised to INR 1-1.2 lacs, which was originally in the 70-75k range. The increase is mostly due to the cost of the battery and the motor.
With this increase, the price of the conversion kit will be almost 50% of the cost of a new e-rickshaw of the same power and speed.
Six more months before this gets launched. Will be interesting to see whether people go for new e-rickshaws or convert their existing diesel rickshaws. CNG rickshaws are also a very good option. At this point of time it is anybody’s guess how the rickshaw segment is going to pan out. I do see a lot of headwinds for e-rickshaws in the short term specially when there is no compulsion to convert.
Challenges

  • Availability of charging infrastructure
  • Power and speed limitation
  • Significant conversion cost

Disclosure: Invested

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Sharing a video covering Salzer Electronics in detail for all the members who want to get upto speed on what’s happening with the business.

Salzer is a sure shot proxy play on the super hot EV theme, in a market where clear winners have not emerged yet, Salzer aims to build on the need for infrastructure of the Electric Vehicle Industry and become a winner in the space.

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