Rs 24,019 million order book & FIIs increase stake: Multibagger penny stock under Rs 20 in green post quarterly results (Q1FY25) & robust order book!

The stock is up by 95 per cent from its 52-week low of Rs 8.71 and gave multibagger returns of over 1,200 per cent in 5 years.

Today, shares of Salasar Techno Engineering Limited (STEL) gained 2/5 per cent to Rs 16.97 per share from its previous closing of Rs 16.56 per share.

Salasar Techno Engineering Limited (STEL), established in 2006, acts as a single source for customized steel infrastructure solutions in India. They offer comprehensive engineering, design, fabrication, galvanisation, and installation services. Their product range includes various towers (telecom, power transmission, lighting, etc.), substations, solar structures, railway electrification components, bridges, and custom steel structures. Additionally, STEL acts as an EPC contractor, undertaking complete project management for rural electrification, power lines, and solar plants. The company has an order book of Rs 24,019 million as of June 30, 2024. 

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. As of April 2024, promoters own 58.76 per cent, FIIs own 6.27 per cent and the public owns 34.95 per cent.

Salasar Techno Engineering Limited has concluded a robust Q1 FY25 with a strong order book of Rs 24,019 million. This healthy pipeline, diversified across telecom infrastructure, power transmission, and renewable energy, ensures a stable revenue stream for the upcoming quarters. Our sustained order wins reinforce our market leadership, driven by clients' trust in our execution capabilities and strategic alignment with high-growth sectors.

The company is well-positioned to capitalize on the government's ambitious infrastructure plans. The National Electricity Plan's substantial investment in power transmission and the Central Electricity Authority's focus on renewable energy integration offers significant growth opportunities. These initiatives align perfectly with our core competencies and will drive increased demand for our solutions, solidifying our position as a key player in the evolving power transmission landscape.

STEL has recently undertaken strategic initiatives to bolster its position in the engineering and infrastructure sectors. The company successfully acquired EMC Limited through an e-auction for Rs 178 crore, aiming to expand its service offerings by integrating EMC's capabilities. Concurrently, STEL secured an additional investment of Rs 35.1 crore from Coeus Global Opportunities Fund, increasing their ownership stake to 1.88 per cent. These financial manoeuvres complement the company's recent project wins, including a Rs 173.99 crore contract in partnership with Rail Vikas Nigam Ltd for Madhya Pradesh Power Transmission Company Limited, and a substantial Rs 1,033.78 crore contract from Tamil Nadu Generation and Distribution Corporation Limited. Collectively, these developments position STEL for significant growth and market leadership in its core sectors.

FIIs bought a 3.66 per cent stake in the company in Q1FY25 and increased to 6.66 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 is up by 95 per cent from its 52-week low of Rs 8.71 and gave multibagger returns of over 1,200 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. 

Also Read: Debt-free penny stock under Rs 10 hit upper circuit as company is into expansion Europe, Middle-East and Africa (EMEA) and Asia-Pacific (APAC) markets!