Shares of this small-cap engineering stock gained approximately 10 percent in Monday’s trading session after the company’s Board is going to meet to consider and recommend a proposal for the declaration of Bonus shares to its shareholders.
With a market capitalization of Rs 1,790.05 crores, the stocks of Salasar Techno Engineering Limited started their trading session on Monday at Rs 54.50 and currently trade at Rs 56.70, gaining around 10 percent as compared to the previous closing levels of Rs 51.72 apiece.
Such bullish stock price movements are observed today after the company, in a recent filing with the Bombay Stock Exchange (BSE), intimated that a Board meeting is scheduled to be held on 20th December 2023 to consider and recommend a proposal for declaration of Bonus shares to its shareholders.
During the recent financial quarters, the company’s basic business indicators such as operating revenues and after-tax profits showed movements in opposing directions.
The former, on one end, increased from Rs 261.86 crores during Q1FY23-24 to Rs 275.35 crores during Q2FY23-24, and, the latter, on the other end, dipped from Rs 10.15 crores to Rs 9.05 crores.
In addition, the company’s profitability ratios showed positive marginal movements with the return on equity (RoE) increasing from 11.77 percent during FY21-22 to 11.80 percent during FY22-23, and the return on capital employed (RoCE), during the same time horizon, rose from 13.05 percent to 14.23 percent.
As per the recent presentations, the overall order book of the company, as of 30th June 2023, stands at Rs 1,440 crores. Out of the same, the domestic Engineering, Procurement, and Construction (EPC) orders constitute 70 percent of the company’s order book.
Founded in 2001, Salasar Techno Engineering Limited is engaged in the business of manufacturing galvanized steel structures and other associated activities. The company manufactures steel structures for transmission towers, telecom towers, railway electrification, solar mounting structures, and many more.
Written by Amit Madnani
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