Rs 24,019 million order book & FIIs increase stake: Multibagger penny stock under Rs 20 jumps over 6 per cent post positive quarterly results (Q1FY25)

The stock gave multibagger retunes of 127 per cent from its 52-week low of Rs 8.71 and a whopping 1,500 per cent in 5 years.

Today, shares of Salasar Techno Engineering Limited (STEL) gained over 6 per cent to an intraday high of Rs 19.76 per share from its previous closing of Rs 18.63 per share. The shares of the company saw a spurt in volume by more than 1.01 times on BSE.

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.

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.

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 gave multibagger retunes of 127 per cent from its 52-week low of Rs 8.71 and a whopping 1,500 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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