Bonus Bonanza: Salasar Techno’s 4:1 Gift and the Surge from Rs 7.20 to Rs 29.40

The recent update on Salasar Techno Engineering Limited’s share

• Salasar Techno Engineering is a small-cap stock. Due to its Q3 results release and bonus share announcement, the company stock has seen a significant increase in market interest.
• The stock has reached a new 52-week high, with a 4.99% increase in share price on the Bombay Stock Exchange (BSE).
• The company’s market capitalization value has reached Rs 4,648.76 crore, marking a new record high for the stock.
• The stock has seen a significant one-year surge of 224%, showcasing its robust market performance.
• The company announced a bonus issue with the board of directors to deliberate on and approve the allotment of bonus shares to eligible shareholders.
• The upcoming Q3 results for the financial year 2023–24 are expected to be released on February 3, 2024.
• Salasar Techno Engineering, incorporated in 2006, offers customized steel fabrication and infrastructure solutions in India.
• The company’s financial performance, strategic initiatives, and optimistic outlook contribute to its allure.

About Salasar Techno Engineering Limited (STEL)

Salasar Engineering Limited (STEL) was established in 2006 as a tower manufacturer. The company has evolved into a rapidly growing steel structure manufacturer and EPC (Engineering, Procurement, and Construction) infrastructure company. The company operates across diverse sectors, including telecom, energy, and railways, offering comprehensive solutions encompassing engineering, designing, fabrication, galvanization, and deployment services.

Here are some key points about the company:

Products and services of the company:

• Designs, fabricates, and deploys telecom towers.
• Offers pre-fabricated building solutions.
• Involves electrifying railway tracks.
• Conducts engineering, procurement, and construction projects for power transmission lines.
• Constructs buildings and bridges.

Key Facts for FY23 of the Company:

• Provided over 50,000 telecom towers.
• Executed 702 kilometers of power transmission lines.
• Executed 588 kilometers of railway track electrification.

Revenue Split of the Company:

• Manufacturing (steel structures and others): 72%.
• EPC (power transmission): 23%.
• EPC (railway electrification): 5%.

Geographical Presence of the Company:

• Operates in India and exports to 25+ nations.
• Operates three manufacturing and galvanizing facilities in Uttar Pradesh.
• Has substantial manufacturing capacity.

Clients of the company

• Serves a diverse clientele, including Airtel, Huawei, Jio, Bajaj, Adani Solar, L&T, Tata Projects, Jindal Steel and Power, and American Tower.

Order Book: H1FY24:

• Includes domestic and export EPC orders, heavy steel structure division orders, monopoles, and telecom tower exports.

Management of Salasar Techno Engineering Limited (STEL)

Registered Address

Industry Type

Sector	Capital Goods
Sub Sector	Industrial Products
Classification	SmallCap
Industry Name	Steel – Medium / Small
BSE Scrip Code	540642
NSE Scrip Code	SALASAR
ISIN:	INE170V01027

Pros & Cons of Techno Engineering Limited (STEL)

Historical Performance

Years	Low	High
1 Year	7.25	139.25
3 Years	3.10	3.10
5 Years	0.70	0.70

Investment Returns

Period	Returns
1 year	229.97%
2 Years	515.06%
3 Years	824.53%
4 Years	2700.00%
5 Years	1076.00%

Dividend History of Salasar Techno Engineering Limited (STEL)

Announcement Date	Ex-Date	Dividend Type	Dividend (%)	Dividend (Rs)
29-05-2023	15-09-2023	Final	10	0.10
01-06-2022	15-09-2022	Final	10	0.10
01-06-2021	08-09-2021	Final	10	1.00
29-06-2020	17-09-2020	Final	10	1.00
04-11-2019	21-11-2019	Interim	10	1.00
28-05-2019	19-09-2019	Final	15	1.50
29-10-2018	15-11-2018	Interim	10	1.00
22-05-2018	19-09-2018	Final	10	1.00
06-11-2017	23-11-2017	Interim	10	1.00

Chart

Fundamental Analysis of Salasar Techno Engineering Limited (STEL)

Metric	Value
Market Cap	₹ 4,641 Cr.
Current Price	₹ 29.4
High / Low	₹ 29.4 / 7.20
Stock P/E	103
Book Value	₹ 2.64
Dividend Yield	0.07 %
ROCE	14.3 %
ROE	11.9 %
Face Value	₹ 1.00
Pledged Percentage	4.02 %
EVEBITDA	47.1
Change in Prom Hold	-0.01 %
Debt to Equity	0.83
Return on Equity	11.9 %
EPS	₹ 0.28
Price to Book Value	11.1
Dividend Yield	0.07 %
Debt	₹ 346 Cr.

Peer Comparison

S.No.	Name	Market Cap (Rs. Cr.)	P/E	ROCE (%)
1	Ratnamani Metals	23371.13	37.54	27.26
2	NMDC Steel	20778.00	N/A	N/A
3	Welspun Corp	15459.28	19.10	6.42
4	Mah. Seamless	13366.34	12.12	19.82
5	Usha Martin	10946.32	27.41	21.25
6	Godawari Power	10237.34	13.09	27.49
7	Sarda Energy	8714.39	16.07	19.31
8	Salasar Techno	4640.87	103.07	14.30

Shareholding of Salasar Techno Engineering Limited (STEL)

Holders	Mar-20	Mar-21	Mar-22	Mar-23	Dec-23
Promoters +	74.94%	74.94%	69.70%	63.07%	63.07%
FIIs +	0.16%	0.00%	0.55%	9.03%	8.85%
DIIs +	0.07%	0.00%	0.00%	0.03%	0.00%
Public +	24.83%	25.06%	29.75%	27.86%	28.07%

Last 5 Years’ Sales (In Cr.)

March 2019	March 2020	March 2021	March 2022	March 2023
655	526	597	719	1,005

Last 5 Years’ Net Profit (In Cr.)

March 2019	March 2020	March 2021	March 2022	March 2023
33	22	30	31	40

Balance Sheet of Salasar Techno Engineering Limited (STEL)

	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	14	29	32	32
Reserves	194	238	253	369
Borrowings +	165	198	249	273
Other Liabilities +	82	102	152	240
Total Liabilities	454	553	683	914
Fixed Assets +	91	113	126	172
CWIP	0	6	21	0
Investments	1	10	0	0
Other Assets +	361	430	551	721
Total Assets	454	553	683	914

Compounded Sales Growth

10 Years:	17%
5 Years:	15%
3 Years:	24%
TTM:	25%

Compounded Profit Growth

10 Years:	23%
5 Years:	7%
3 Years:	22%
TTM:	56%

CAGR

10 Years:	%
5 Years:	64%
3 Years:	110%
1 Year:	222%

Return on Equity

10 Years:	14%
5 Years:	13%
3 Years:	12%
Last Year:	12%

Cash Flow (In Cr.)

Particulars	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Operating Activities	-12	31	-7	1	-0
Investing Activities	-14	-22	-24	-27	-70
Financing Activities	22	-11	30	26	70
Net Cash Flow	-4	-1	-0	-0	0

Revenue and Profit Trend

Financial Year	Revenue Growth	Profit Growth
FY 2022-23	44.75%	26.03%
FY 2021-22	18.44%	8.44%
FY 2020-21	11.00%	32.88%
FY 2019-20	-19.69%	-33.02%
FY 2018-19	32.25%	11.26%

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Conclusion

This is a comprehensive guide to Salasar Techno Engineering Limited (STEL). The above-mentioned information and data are as of February 3, 2024. These figures and projections are based on our research, analysis, company fundamentals and history, experiences, and numerous technical analyses. In addition, we have discussed in depth the share’s prospects and growth potential. Hopefully, these details will be useful in your future investments. If you’re new to our website and want to stay up-to-date on the newest stock market news, join our Telegram group. If you have any further questions, please leave them in the comments section below. We will gladly address all of your inquiries. If you enjoyed this information, please share it with as many people as possible.

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