Rs 2,388 crore order book: Multibagger penny stock under Rs 20; Jumps 8.7 per cent from intraday low
The stock is up by 70 per cent from its 52-week low of Rs 9.89 per share and gave multibagger returns of 1,330 per cent in 5 years.
On Friday, shares of Salasar Techno Engineering Limited (STEL) jumped 8.70 per cent to Rs 16.79 per share from its intraday low of Rs 15.45 per share. The stock’s 52-week high is Rs 34.08 per cent and its 52-week low is Rs 9.89 per share.
Established in 2006, Salasar Techno Engineering Limited (STEL) is a leading provider of customized 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.
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The acquisition of EMC's solar power plant not only diversifies Salasar Techno's operations but also introduces a sustainable energy component, aligning with global trends and environmental concerns. Furthermore, the company's international expansion is evident through ongoing projects in Tanzania and a strategic technical collaboration with Ramboll Telecom, a global leader in innovative tower design. With a robust order book of ₹10,337.8 Mn from Tangedco, Salasar Techno is well-positioned to capitalize on future growth opportunities and solidify its position as a leading player in the power transmission and distribution sector.
The company anticipates a robust growth trajectory, targeting a CAGR of at least 20 per cent for its top and bottom lines in the coming years. This growth is fuelled by a substantial order book of Rs 2,388 crore, encompassing domestic and international EPC orders, monopoles, heavy steel structure projects, and export orders for telecom towers and poles. The company maintains a consistent order inflow of Rs 30-35 crore per month for telecom towers. Additionally, it is actively pursuing opportunities in the EPC business to enhance margins. To solidify its financial position, the company is adhering to its long-term debt repayment schedule, aiming to significantly reduce its debt burden.
The company issued bonus shares in a 4:1 ratio to its shareholders on February 1, 2024 (ex-date). This means that for every one share a shareholder held, they received four additional shares. The stock is up by 70 per cent from its 52-week low of Rs 9.89 per share and gave multibagger returns of 1,330 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.