Rs 2,388 crore order book: Multibagger penny stock under Rs 20; Company considered and approved proposed amalgamation with Hill View Infrabuild Ltd
The stock is up by 8.80 per cent from its 52-week low of Rs 12.90 per share and gave multibagger returns of 1,230 per cent in 5 years.
Salasar Techno Engineering Limited approved to amalgamation of Hill View Infrabuild Limited with itself under the Companies Act, 2013. Hill View Infrabuild Limited is an unlisted public company involved in infrastructure development and acts as an incubator for Salasar Techno's projects. Salasar Techno Engineering Limited is a listed company engaged in manufacturing telecom, railway, and transmission towers, and has diversified into steel bridges and railway electrification. The amalgamation will be achieved through a share exchange, with no cash consideration. Salasar Techno will issue 2,87,430 equity shares and 8,358 preference shares for every 100 equity shares held in Hill View Infrabuild.
This transaction falls within related party transactions but is proposed at arm's length. The key rationale for the amalgamation includes consolidating Group Companies, simplifying shareholding, and pooling resources for better utilization and cost efficiency. By combining their strengths, the companies aim to achieve economies of scale, reduce overheads, enhance operational efficiency, and improve shareholder value. The amalgamation will also streamline legal and regulatory compliances for both entities.
Earlier, Salasar Techno's strategic acquisition of EMC Limited, a distinguished EPC player in power transmission and distribution, for a substantial Rs 178 crore, marks a pivotal moment in the company's growth trajectory. This strategic move, further solidified by a preferential issue of 290.77 crore, empowers Salasar Techno to actively participate in highly lucrative 765 kV transmission line and substation projects. By integrating EMC's extensive expertise and leveraging its valuable assets, Salasar Techno significantly enhances its capabilities to execute complex EPC orders, reinforcing its position in the industry.
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Established in 2006, Salasar Techno Engineering Limited (STEL) is a leading provider of customised steel infrastructure solutions in India. They offer a comprehensive range of services, including engineering, design, fabrication, galvanization and installation. STEL's product portfolio includes various towers (telecom, power transmission, lighting, etc.), substations, solar structures, railway electrification components, bridges and custom steel structures. Moreover, they act as an EPC contractor, managing complete projects for rural electrification, power lines and solar plants. As of September 30, 2024, STEL has a strong order book of Rs 2,388 crore.
According to Quarterly Results (Q2FY25), the revenue increased by 2.2 per cent to Rs 281.49 crore and net profit increased by 6.9 per cent to Rs 9.68 crore compared to Q2FY24 while in its half-yearly results (H1FY25), the net sales increased by 7.1 per cent to Rs 575.49 crore and net profit increased by 5 per cent to Rs 20.17 crore compared to H1FY24.
The company issued bonus shares in a 4:1 ratio to its shareholders on February 1, 2024 (ex-date). This means that for every share a shareholder held, they received four additional shares. The stock is up by 8.80 per cent from its 52-week low of Rs 12.90 per share and gave multibagger returns of 1,230 per cent in 5 years. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.