Multibagger penny stock below Rs 60 with Rs 1,440 crore order book; Board announces 4:1 bonus shares; scrip hit 52-week high!

The stock gave multibagger returns of 425 per cent in just 3 years while the BSE Sensex Index is up by 50 per cent.

Buoyed by a morning surge, Indian indices ultimately ended the day down over 1 per cent, with both Sensex and Nifty-50 retreating from historic peaks of 71,900 and 21,500 level respectively.

Despite the market's overall decline, the multibagger penny stock initially soared in the first half, reaching new all-time highs of Rs 64.75 (up 5.81 per cent). However, a heavy market selloff later dragged the stock down 2.40 per cent to Rs 59.72, ending its day lower than its previous closing. The shares of the company saw a spurt in volume by more than 4.51 times on BSE.

The stock that is creating the excitement is none other than SALASAR TECHNO ENGINEERING LTD. The company Established in 2006 as a tower manufacturer, Salasar Techno Engineering Ltd has emerged as a fast-growing steel structure manufacturer & EPC infrastructure company, providing services across the telecom, energy and railways sectors.

The company’s Board of Directors recommended the issue of bonus shares in the proportion of 4:1; i.e., 4 new fully paid-up bonus equity shares having a face value of Rs 1 each for every 1 existing fully paid-up equity share of Rs 1 each held by the members of the company as on the record date, subject to/shareholders and other statutory approvals. The company will credit bonus shares within 2 months from the date of the Board approval i.e. Wednesday, December 20, 2023.

In 2017, Salasar Techno Engineering's initial public offering (IPO) took the Indian stock market by storm. With a phenomenal subscription of 273.05 times, it smashed records and became the most subscribed IPO in the Indian markets.

Results: According to the Quarterly Results, the net sales increased by 6.42 per cent to Rs 275.35 crore and the net profit increased by 20.5 per cent to Rs 9.05 crore in Q2FY24 compared to Q2FY23. According to the half-yearly results, the net sales increased by 14.5 per cent to Rs 537.21 crore and the net profit increased by 29.5 per cent to Rs 19.20 crore in H1FY24 compared to H1FY23.

Order book: As of 30th September 2023, STEL has a strong diversified order book worth Rs 1,440 crore providing strong revenue visibility. STEL's order book comprises domestic EPC orders valued at Rs 1,090 crore, international EPC orders worth Rs 211 crore, orders under the heavy steel structure division worth Rs 130 crore, monopoles worth Rs 53 crore, and telecom tower and pole exports worth Rs 37 crore. Additionally, STEL receives recurring monthly orders for telecom towers worth approximately Rs 30-35 crore.

In the financial year 2022-2023, the company conducted a stock split, reducing the share value from Rs 10 to Rs 1, with a record date of June 27, 2022. The stock gave multibagger returns of 425 per cent in just 3 years while the BSE Sensex Index is up by 50 per cent. Investors should keep an eye on this Small-Cap engineering stock.

Disclaimer: The article is for informational purposes only and not investment advice.