Multibagger penny stock below Rs 60 with Rs 1,440 crore order book: This small-cap engineering company bags new order worth Rs 364 crore from TANGEDCO!

The stock gave multibagger returns of 382 per cent in just 3 years while the BSE Sensex Index is up by 51.12 per cent.

Salasar Techno Engineering Ltd (STEL), a leader in steel structures and EPC solutions, has secured a major Rs 364 crore contract from Tamil Nadu's power utility TANGEDCO. This turnkey project aims to significantly upgrade the Erode district's power infrastructure through loss reduction initiatives. STEL will be responsible for designing, supplying, installing, and testing key components like feeder segregation systems, high voltage distribution networks, and transformer separation, all within a 36-month timeframe. This project strengthens STEL's order book and promises healthy profit margins, solidifying its position as a prominent player in India's infrastructure development.

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.

On Friday, shares of Salasar Techno Engineering Ltd gained 2 per cent to Rs 51.11 per share from its previous closing of Rs 50.11 with an intraday high of Rs 51.67 and an intraday low of Rs 49.81. The stock’s 52-week high is Rs 58.66 and its 52-week low is Rs 35.80.

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. 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 382 per cent in just 3 years while the BSE Sensex Index is up by 51.12 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.