Multibagger penny stock under Rs 25 rockets 7 per cent with heavy volume; Company has a strong order book of Rs 24,019 million & FIIs increase stake!
The stock gave multibagger retunes of 165 per cent from its 52-week low of Rs 8.71 and a whopping 1,700 per cent in 5 years.
Today, shares of Salasar Techno Engineering Limited (STEL) gained 7 per cent to an intraday high of Rs 23.10 per share from its previous closing of Rs 21.59 per share. The company's shares saw a spurt in volume by more than 2 times on BSE. The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces.
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 June 30, 2024, STEL has a strong order book of Rs 24,019 million.
According to Quarterly Results (Q1FY25), the total income increased by 12.41 per cent to Rs 294.90 crore and net profit increased by 3.35 per cent to Rs 10.49 crore compared to Q1FY24 while in its annual results (FY24), the net sales increased by 20.3 per cent to Rs 1,208,43 crore and net profit increased by 31.5 per cent to Rs 52.93 crore compared to FY23.
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STEL's strategic acquisitions, such as EMC Limited, and additional funding from Coeus Global Opportunities Fund, have strengthened its market position. Furthermore, significant project wins, including a Rs 1,033.78 crore contract from Tamil Nadu Generation and Distribution Corporation Limited and a Rs 173.99 crore contract in partnership with Rail Vikas Nigam Ltd for Madhya Pradesh Power Transmission Company Limited, demonstrate STEL's growth trajectory.
FIIs bought a 5.42 per cent stake in the company in Q1FY25 and increased to 8.42 per cent compared to 3 per cent in Q4FY24. 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 gave multibagger retunes of 165 per cent from its 52-week low of Rs 8.71 and a whopping 1,700 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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