Shares of this micro-cap stock held by Ms. Dolly Khanna traded flat after the company secured a patent for an Automatic Source Changeover for a period of 20 years. Year-to-date, the company’s stock has gained more than 40 percent.
With a market capitalization of Rs 608.34 crores, the stocks of Salzer Electronics Limited closed at Rs 364.65 on Friday, a flat movement as compared to the previous close of Rs 365.65 apiece.
In a recent filing with the Bombay Stock Exchange (BSE), the company intimated that it has received a 20-year patent for a revolutionary product, i.e., “Heavy Duty Energy Efficient Automatic Source Changeover” (ACCL).
The patented technology, first introduced in 2016, has generated a revenue of approximately Rs 10 crores, primarily within the Building Segment business division.
The product is designed to successfully manage generator power distribution in residential buildings, townships, apartment complexes, and other commercial structures. Its main purpose is to help prevent generator overload.
During the recent financial years, the company has shown decent movements as far as the operating revenues and net profits are concerned. The former increased from Rs 803.54 crores during FY21-22 to Rs 1,037.17 crores during FY22-23, and, the latter, during the same period, moved up from Rs 24.2 crores to Rs 39.62 crores.
As a result of the same, the company’s profitability metrics improved with the return on equity (RoE) increasing from 7.05 percent during FY21-22 to 10.58 percent during FY22-23, and, the return on capital employed (RoCE), keeping the timeframe the same, shifting from 9.17 percent to 12.55 percent.
Ms. Dolly Khanna, one of the well-known ace investors based in India, has recently invested in the stocks of Salzer Electronics Limited and, as per the September 2023 quarter, she holds around 1.78 lakh equity shares equivalent to a 1.06 percent stake.
According to the shareholding pattern data available for the quarter ended September 2023, the company’s Promoters hold a 35.13 percent stake, and the Foreign Institutional Investors (FIIs) hold a 6.06 percent stake in the company.
Salzer Electronics Limited is involved in the business of manufacturing cam-operated rotary switches, wiring ducts, selector switches, voltmeter switches, and allied products.
The company has four business divisions that are industrial switchgears, building products, copper business, and energy savers. The ‘wires and cables’ segment generates the majority of revenue for the company.
Written by Amit Madnani
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