Multibagger penny stock at Rs 24 with Rs 2,326 crore order book: This engineering company likely to receive orders worth Rs 200,00,00,000 from various clients!
The stock gave multibagger returns of 165 per cent in 1 year and a whopping 890 per cent in 5 years.
Today, the Indian stock market witnessed was down, with the BSE Sensex and NSE Nifty indices plunging by 0.60 per cent and 0.66 per cent respectively. Though the market was in red, one multibagger penny stock gained 2.1 per cent of Rs 24 per share from its previous closing of Rs 23.51 per share. The stock’s 52-week high is Rs 34.08 and its 52-week low is Rs 7.20.
The stock name is SALASAR TECHNO ENGINEERING LTD (STEL).
Established in 2006 as a tower manufacturer, Salasar Engineering Limited has emerged as a fast-growing Steel structure manufacturer & EPC infrastructure company, providing services across telecom, energy and railways sectors. The company has an order book of Rs 2,326 crore as of December 31, 2023, out of which Rs 1,879 crore are domestic EPC orders, Rs 221 are international EPC orders, orders under heavy steel structure division are worth Rs 110.7 crore, Monopoles orders are worth Rs 72.1 crore and exports orders (telecom towers and poles) are worth Rs 43.2 crore.
Salasar Techno Engineering Ltd is setting its sights on a booming opportunity: monopoles. With over 16 years of experience in crafting various kinds of towers and structures, the company is well-equipped to capitalize on the rising demand for these space-saving, efficient supports.
Monopoles, previously popular in the West, are now gaining traction in India due to their distinct advantages over traditional lattice towers. They require significantly less space, offer faster erection times, and are even considered eco-friendly thanks to their smaller footprints. Recognizing these benefits, various sectors like power corporations, highway authorities, and smart city projects are increasingly turning to monopoles.
Salasar Techno is a pioneer in this space, being among the first in India to design, test, and manufacture steel monopoles. Their decade-long expertise positions them as a preferred partner for national and international companies. Their commitment to quality is evident in their ISO certifications and a strong in-house engineering team that handles projects from conception to completion.
Recent ground-breaking deliveries further solidify their leadership:
- A 220kV D/C pole with a remarkably short peak, delivered to Tata Power.
- A 220kV M/C pole with the highest groundline reactions, supplied to UPPTCL.
- Design, manufacturing, and supply of a 66kV D/C multilevel pole for MPSEZ Utilities.
- Delivery of a 132kV M/C special pole to Bihar State Power Transmission.
Riding on all these factors, The Company is receiving a high volume of inquiries from big customers, already having orders worth ~Rs. 720 Mn from various prestigious clients like UPPTCL, Karnataka Power Corporation, TKG infrastructure etc and is confident of getting firm orders to manufacture and supply Monopoles amounting to ~Rs. 2,000 Mn within the next 12 months.
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The company plans to raise Rs 806.4 crore by issuing equity shares and convertible warrants to non-promoters and promoters. The Board of Directors also approved a bonus issue of 4 shares for every 1 share held by members on record as of February 1, 2024. This move is expected to inject substantial capital into the company and support its ambitious growth plans. Specific investors like North Star Opportunities Fund, Intuitive Alpha Investment Fund, and Coeus Global Opportunities Fund have been earmarked for significant share allocations.
According to Quarterly Results (Q3FY24), the net sales increased by 26.32 per cent to Rs 304.35 crore and net profit increased by 56.75 per cent to Rs 167.10 crore compared to Q3FY23 while in nine-month results (9MFY24), the net sales increased by 18.43 per cent to Rs 841.10 crore and net profit increased by 40.89 per cent to Rs 35.96 crore compared to 9MFY23. As of December 2023, promoters own 63.07 per cent, FIIs own 8.85 per cent and the public own 28.08 per cent.
The stock gave multibagger returns of 165 per cent in 1 year and a whopping 890 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.
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