Headquartered in New Delhi, Salasar Techno Engineering was incorporated in 2001. The company has emerged as a fast-growing Steel structure manufacturer and EPC infrastructure company, providing services across the telecom, energy and railways sectors.
With a market capitalisation of Rs. 4,172 crores, the shares of Salasar Techno Engineering started Monday’s trading session on a higher note at Rs. 125.75 compared to its previous close of Rs. 120.05. Within a few minutes of the opening bell, the shares hit a 10 percent upper circuit at Rs. 132.05, also recorded as the company’s fresh 52-week high.
Reflecting on orders and bonus issues, the stock has moved significantly over the previous few days. Here are the reasons:
On 23d January 2024, the company informed that they had been declared successful for various additional contracts, accumulating to Rs. 9,793.7 million to date, focussing on the development of ‘Distribution Infrastructure for Loss reduction’ under the Government of India’s Revamped distribution Sector Scheme (RDSS).
Furthermore, the company has successfully built its presence in the railway and power sector by executing contracts for Transmission Lines, Sub-StaIons and Distribution Lines awarded by various prestigious power sector PSUs and Indian Railways amounting to Rs. 7,310.3 million thus far.
With its extensive years of expertise, Salasar Techno Engineering has been successful in bolstering its order book and is in the advanced stages of complementing additional contracts worth Rs. 25,164.3 million, awarded by Indian Railways and various power sector PSUs over the past couple of years.
Moreover, STEL categorises its order book into two categories, i.e., Competitive orders and Continuous Regular Business Orders. As of date, the company has an unexecuted order book in hand from Competitive orders Categories from the Railway and Power Sector, worth Rs. 14,202.71 million.
The order book further gets healthy by continuous, regular, and repeated business orders from the Telecom sector, with an approximate value of Rs. 325 to 350 million monthly, translating into approx. Annual Value of Rs. 4,200 million.
Earlier, on Jan 27, 2024 , the company announced that they are to make the allotment of Bonus Shares to all the eligible shareholders, who hold shares on the already intimated Record Date i.e. 1st February 2024. Bonus Shares shall be allotted in the ratio of 4:1 (4 new bonus Shares for every 1 existing equity share) as all necessary approvals have already been obtained.
Looking at the company’s financial statement, the revenue increased marginally by 5 percent from Rs. 261.86 crores in the June quater to Rs. 275.35 crores during the September quater. On a contrasting note, the net profit declined by 11 percent from Rs. 10.15 crores to Rs. 9.05 crores during the same period.
Written By Vaibhav Patil
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