Stock of this smallcap industrial products company has zoomed 68% in 4 days

At 02:37 PM; STEL was quoting 13 per cent higher at Rs 107.08, as compared to 1.4 per cent decline in the S&P BSE Sensex

Shares of Salasar Techno Engineering Limited (STEL) surged 18 per cent to hit a record high of Rs 112.23 on the BSE in Tuesday’s intra-day trade amid heavy volumes.

In the past four trading days, the stock of the smallcap industrial products company has zoomed 68 per cent from a level of Rs 66.79 on Thursday, January 17.

In the past six weeks, the market price of STEL has more than doubled or skyrocketed 126 per cent.

At 02:37 PM, STEL was quoting 13 per cent higher at Rs 107.08 as compared to a 1.4 per cent decline in the S&P BSE Sensex.

The average trading volumes on the counter jumped more than two-fold today. A combined 16.97 million equity shares, representing 5.4 per cent of total equity of STEL, changed hands on the NSE and BSE.

STEL on Saturday January 20 announced that its board has approved the proposal to raise funds to accelerate business growth and to augment the financial resources of the company.

Last week, the board at their meeting held on January 18, 2024 has fixed February 1, 2024 as the record date for the purpose of ascertaining the eligibility of shareholders for entitlement of bonus shares in the ratio of 4:1 i.e. 4 new bonus equity share for every 1 one share held on record date.

STEL is primarily engaged in the business of manufacturing and sale of galvanized and non galvanized steel structures including telecom towers, transmission line towers including Railway Electrification (OHE), solar panels and pre-fabricated steel structures such as bridges, heavy steel structures etc.

STEL’s services include providing complete Engineering, Procurement & Control (EPC) for projects such as rural electrification, power transmission lines and solar power plants.

STEL is among the leading manufacturers with the current installed capacity of 2,11,000 MTPA having supplied 50,000 plus telecom towers, 746 km of power transmission lines, 629 km railway.

The customers of the company mainly include the leading telecom/tower companies of India, Indian Railways and state power corporations. The company also supplies to leading EPC companies such as Larsen & Toubro.

Meanwhile, last month STEL had bagged a contract valued at Rs 364 crore from Tamil Nadu Generation and Distribution Corporation (TANGEDCO).

Under the contract, STEL is entrusted with the supply, erection, and installation of feder segregation, high voltage distribution system, separation of double distribution transformer, and augmentation of 33KV Lines.

The management said the contract further strengthens the order book and is expected to get completed within 36 months, yielding healthy EBITDA margins.