Shares of this multibagger steel stock jumped approximately 4 percent in Thursday’s trading session after the Joint Venture (JV) company with Rail Vikas Nigam Limited (RVNL) emerged as the lowest (L1) bidder for a project worth Rs 173.99 crores.
With a market capitalization of Rs 3,843.71 crores, the stocks of Salasar Techno Engineering Limited opened their trading hour on Thursday at Rs 23.50 and closed the session at Rs 24.42, gaining approximately 4 percent as compared to the previous close of Rs 23.51 apiece.
Such bullish stock price behavior is witnessed after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated that “RVNL-Salasar JV”, a joint venture company formed between Salasar Techno Engineering and Rail Vikas Nigam Limited, emerged as the lowest (L1) bidder for a project worth Rs 173.99 crores.
The abovementioned order is received from “Madhya Pradesh Power Transmission Company Limited” (MPPTCL) for the purpose of constructing 32kV & 220kV Transmission Lines and associated Feeder Bays on a turnkey basis in Eastern Madhya Pradesh. The time period for executing the order is 18 months.
The JV company’s shareholding constitutes RVNL holding 51 percent of the company and Salasar Techno Engineering Limited holding the remaining 49 percent of the company.
Keeping a purview of six months, the company’s stock delivered multibagger returns of around 127 percent for its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.27 lakhs.
During the recent financial quarters, the company’s prime business indicators, such as operating revenues and after-tax profits, showed positive movements with the former increasing from Rs 275 crores during Q2FY24 to Rs 303 crores during Q3FY24 and the latter, keeping the timeframe the same, rising drastically from Rs 9 crores to Rs 16 crores.
According to the latest shareholding data for the December 2023 quarter, the company’s Promoters hold a 63.07 percent stake, and the Foreign Institutional Investors (FIIs), marginally reducing their stake during the recent period, currently hold a 8.85 percent stake in the company.
Salasar Techno Engineering Limited is engaged in the business of manufacturing galvanized steel structures for transmission towers, telecom towers, utility poles, etc. The company has two broad segments including steel structure and sale of Galvanized and Non-galvanized Steel Structures.
Written by Amit Madnani
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