Multibagger penny stock with Rs 1,440 crore order book: Board announced bonus shares and proposed merger with Hill View Infrabuild Limited!

The stock is up by 455 per cent in just 3 years while the BSE Sensex Index is up by 45.42 per cent.

Today, this multibagger penny stock gained 6.32 per cent and reached a new all-time high & 52-week high of Rs 74.95 per share from its previous closing of Rs 70.49.  

SALASAR TECHNO ENGINEERING LTD, once a humble tower builder in 2006, has rocketed into a steel and EPC powerhouse, its influence now shaping vital sectors like telecom, energy, and railways. This fast-growing force is the buzz on the stock market today.

The company informed the 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 fixed the record date for the bonus issue of shares as Thursday, February 1, 2024.

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.

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.

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 36 per share. The stock is up by 455 per cent in just 3 years while the BSE Sensex Index is up by 45.42 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.