Promoters hold 37.53 per cent stake: Multibagger electrical equipment stock to keep under radar as company announces stellar quarterly results

The stock gave multibagger returns of 160 per cent in just 1 year, 370 per cent in 3 years and a whopping 720 per cent in 5 years.

Salzer Electronics Limited (BSE: 517059, NSE: SALZERELEC), a capital goods engineering company offering total and customised electrical solutions, announced its unaudited financial results for the second quarter and half year ended September 30, 2024.

For the quarter ended September 30, 2024, the company witnessed a robust performance, with Net Revenue surging to Rs 344.23 crore, marking a 22.62 per cent YoY growth compared to the previous year's Rs 280.72 crore. This growth was primarily fuelled by increased demand for Industrial switchgear and wires & cable products, particularly three-phase transformers, wire harnesses, relays, and new offerings like contactors. Exports contributed significantly, accounting for 29.15 per cent of the revenue, with a 3.1 per cent YoY growth driven by strong sales in North and South America, the Middle East, Africa, and Asian countries. Consequently, Profit After Tax surged to Rs 27.28 crore, a substantial 170.10 per cent YoY increase from Rs 10.10 crore in the same period last year.

For the half-year period, the company's positive momentum continued, with Net Revenue reaching Rs 701.14 crore, a 23.14 per cent YoY growth over the previous year's Rs 569.40 crore. This growth was primarily driven by the strong performance of the Industrial switchgear and wire & cable businesses. Profit After Tax for the half-year period also saw a significant improvement, reaching Rs. 42.03 crore, a 107.39 per cent YoY growth from Rs. 20.27 crore in the same period last year. The company also secured its first small order worth Rs 5 crore for Smart Meters, signalling its entry into this promising segment.

Salzer, a prominent player in the electrical solutions industry, specializes in providing comprehensive and tailored solutions for switchgears, wires & cables, and energy management. Renowned as India's largest manufacturer of CAM Operated Rotary switches and Wire Ducts, Salzer leverages its four in-house manufacturing facilities in Coimbatore to deliver a diverse range of products. With a robust distribution network spanning both domestic and international markets, the company exports to numerous countries. In India, Salzer's products are marketed through its own distributors and a network of over 350 local L&T distributors. The company's dedicated R&D team is committed to developing and commercializing cutting-edge technologies, enabling Salzer to offer customized electrical solutions that meet the specific needs of its customers.

The company has a market cap of Rs 1,725.60 crore with promoters holding37.53 per cent stake, FIIs own 2.65 per cent stake, DIIs own 0.11 per cent stake and public owns 59.71 per cent stake as of September 2024. The stock gave multibagger returns of 160 per cent in just 1 year, 370 per cent in 3 years and a whopping 720 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.