4:1 Bonus Share: Multibagger penny stock under Rs 100 with Rs 1,440 crore order was locked in 20 per cent upper circuit on January 20
The stock is up by 580 per cent in just 3 years while NSE Nifty-50 Index is up by 50 per cent.
The stock market ended the day in the red today with BSE Sensex Index down 0.36 per cent and NSE Nifty-50 Index down 0.23 per cent. Though the market was in red, this multibagger penny stock was locked in 20 per cent upper circuit to Rs 95.15 per share from its previous closing of Rs 79.30 per share with a spurt in volume by more than 3.40 times, being one of the Top Gainers on NSE.
The stock name is SALASAR TECHNO ENGINEERING LIMITED.
Established in 2006 as a tower manufacturer, Salasar Techno Engineering Limited has emerged as a fast-growing Steel structure manufacturer & EPC infrastructure company, providing services across the telecom, energy and railways sectors.
As of September 30, 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.
The Board of Directors has proposed issuing bonus shares to shareholders in a 4:1 ratio, meaning for every existing share held, shareholders will receive 4 additional free shares. Each bonus share will have a face value of Rs 1, and the record date for determining eligible shareholders is Thursday, February 1, 2024. This proposal is subject to shareholder and regulatory approvals.
Additionally, the Board considered and approved, in principle, the proposed amalgamation of ‘Hill View Infrabuild Limited’ with Salasar Techno Engineering Limited and other connected matters subject to requisite approvals.
Salasar Techno Engineering's 2017 IPO wasn't just successful, it was a market phenomenon. Its eye-popping 273-fold subscription shattered records, crowning it the most sought-after IPO in Indian history and sending shockwaves through the stock market.
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.
The stock gave multibagger returns of over 160 per cent from its 52-week low of Rs 36 per share. The stock is up by 580 per cent in just 3 years while NSE Nifty-50 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.
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