Multibagger penny stock at Rs 34 with Rs 2,326 crore order book: Heavy buying in this engineering stock, hit back-to-back upper circuits & 52-week highs!

The stock gave multibagger returns of over 150 per cent year to date (YTD), 287 per cent in 1 year and a whopping 1,090 per cent in 5 years.

Today, the Indian stock market witnessed a surge, with the BSE Sensex and NSE Nifty indices plunging by 0.24 per cent and 0.20 per cent respectively. Though the market was in red, one multibagger penny stock reached a fresh 52-week high of Rs 34.08 per share, soaring 5 per cent to secure a spot among the day's leading gainers.

The stock name is SALASAR TECHNO ENGINEERING LTD (STEL).

Established in 2006 as a tower manufacturer, Salasar Engineering Limited has emerged as a fast-growing Steel structure manufacturer & EPC infrastructure company, providing services across telecom, energy and railways sectors. The company has an order book of Rs 2,326 crore as of December 31, 2023, out of which Rs 1,879 crore are domestic EPC orders, Rs 221 are international EPC orders, orders under heavy steel structure division are worth Rs 110.7 crore, Monopoles orders are worth Rs 72.1 crore and exports orders (telecom towers and poles) are worth Rs 43.2 crore.

India is also the third-largest producer and consumer of electricity globally, and as per the Central Electricity Authority’s (CEA) estimates India's power requirement will reach 340 GW by 2030, driving the need for modernization & upgradation of the existing power transmission and distribution system. Moreover, India’s infrastructure sector is poised for significant growth with the Government's initiative towards augmenting the renewable energy capacity in solar space by 200 GW by 2030, which is expected to play a pivotal role in boosting the country’s economic development. The company’s presence in these diverse sectors will create a conducive environment for the company’s facilitating business growth.

The company plans to raise Rs 806.4 crore by issuing equity shares and convertible warrants to non-promoters and promoters. The Board of Directors also approved a bonus issue of 4 shares for every 1 share held by members on record as of February 1, 2024. This move is expected to inject substantial capital into the company and support its ambitious growth plans. Specific investors like North Star Opportunities Fund, Intuitive Alpha Investment Fund, and Coeus Global Opportunities Fund have been earmarked for significant share allocations.

According to Quarterly Results (Q3FY24), the net sales increased by 26.32 per cent to Rs 304.35 crore and net profit increased by 56.75 per cent to Rs 167.10 crore compared to Q3FY23 while in nine-month results (9MFY24), the net sales increased by 18.43 per cent to Rs 841.10 crore and net profit increased by 40.89 per cent to Rs 35.96 crore compared to 9MFY23. As of December 2023, promoters own 63.07 per cent, FIIs own 8.85 per cent and the public own 28.08 per cent.

The stock gave multibagger returns of over 150 per cent year to date (YTD), 287 per cent in 1 year and a whopping 1,090 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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5 comments on article "Multibagger penny stock at Rs 34 with Rs 2,326 crore order book: Heavy buying in this engineering stock, hit back-to-back upper circuits & 52-week highs!"

Basavaraj Shankarappa Harlapur

Ok good job

2/7/2024 3:31 PM

Basavaraj Shankarappa Harlapur

Ok good

2/7/2024 3:32 PM

T Hingba Daniel

I have multibagger penny

2/7/2024 9:39 PM

A shiva A shiva

A Shiva

2/8/2024 10:44 AM

Mahendra Pal Chak

Good

2/8/2024 3:43 PM

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