Rs 2,198 Crore Order Book: Multibagger Penny Stock Under Rs 10 Jumps 16.3 Per Cent on April 01

The stock is up by 22 per cent from its 52-week low of Rs 7.80 per share and has given multibagger returns of over 1,100 per cent in 5 years.

Today, the Indian stock market was trading in the red, with the BSE Sensex and NSE Nifty indices plunging 1 per cent each. Though the market was trading in the red, shares of Salasar Techno Engineering Ltd jumped 16.3 per cent to Rs 9.49 per share from its previous closing of Rs 8.16 per share with heavy volume. The stock’s 52-week high is Rs 24.15 per share and its 52-week low is Rs 7.80 per share.  

The Board of Directors of Salasar Techno Engineering Limited, in their meeting held on March 26, 2025, approved the proposed Scheme of Amalgamation of EMC Limited, its wholly-owned subsidiary, with Salasar Techno Engineering Limited. This decision, made under sections 230 to 232 of the Companies Act, 2013, aims to consolidate the two entities. EMC Limited's financials as of December 31, 2024, showed a paid-up share capital of Rs 7,800 lakh, reserves & surplus of Rs 5,376.04 lakh and a total income of Rs 1,471.08 lakh with a profit after tax of Rs (774.89) lakh. Salasar Techno Engineering Limited's financials for the same period showed a paid-up share capital of Rs 17,267.70 lakh, reserves & surplus of Rs 53,959.24 lakh, total income of Rs 94,494.02 lakh and profit after tax of Rs 3,139.91 lakh. The scheme is subject to approvals from competent authorities and sanction by the National Company Law Tribunal (NCLT). The Audit Committee and the Independent Directors’ Committee of Salasar Techno Engineering Limited had previously reviewed and recommended the proposed amalgamation.

The amalgamation is driven by the rationale of operational integration, better facility utilization, efficient raw material procurement, and reduced costs. It also seeks to enhance marketing value, improve customer satisfaction, and streamline legal compliance. Since EMC Limited is a wholly-owned subsidiary, no new shares will be issued, and the transaction is not considered a related party transaction. The financial details of both companies, including their paid-up share capital, reserves, total income, and profit after tax, were disclosed, along with the pre and post-scheme shareholding patterns of Salasar Techno Engineering Limited. The aim is to create a more efficient and financially stable combined entity, ultimately benefiting shareholders and stakeholders.

About the Company

Established in 2006, Salasar Techno Engineering Limited (STEL) is a leading provider of customised 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 December 31, 2024, STEL has a strong order book of Rs 2,198 crore.  

According to Quarterly Results (Q3FY25), the net sales increased by 33.3 per cent to Rs 375.18 crore and net profit increased by 23.3 per cent to Rs 11.95 crore compared to Q3FY24 while in its nine-month results (9MFY25), the net sales increased by 13 per cent to Rs 950.67 crore and net profit decreased by 11 per cent to Rs 32.11 crore compared to 9MFY24. In FY24, the company reported net sales of Rs 1,208.43 crore and net profit of Rs 52.95 crore.

In December 2024, DIIs took a fresh entry and bought 15,00,000 shares or 0.09 per cent stake. The stock is up by 22 per cent from its 52-week low of Rs 7.80 per share and has given multibagger returns of over 1,100 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.