Salasar Techno hits highest level since listing;up 238% against issue price

The stock rallied 8% to Rs 365 on the BSE in intra-day trade, surging 238% against issue price of Rs 108 per share.

Shares of Salasar Techno Engineering rose by 8% to Rs 365 on the BSE, its highest level since listing on July 25, 2017. The stock appreciated 238% against its issue price of Rs 108 per share.

Salasar Techno Engineering is into manufacturing, fabrication and installation of telecom towers, transmission towers & substation structures and solar mounting structures.

For the first nine months (April-December) of current financial year 2018 (FY18), the company had reported a strong 74% year on year (YoY) growth in net profit at Rs 202 million against Rs 116 million during the same period of FY17.

Operational revenues during the period rose 40% YoY to Rs 3,490 million from Rs 2,492 million in the corresponding period of previous fiscal. The earnings before interest, tax, depreciation and amortised expenses (Ebitda) margin improved by 83 bps to 10.88% from 10.05%.

Salasar Techno Engineering  believe that the government’s capex in infrastructure and investments in electrification of railways will help companies like it to continuously improve and perform better with lot of opportunities opening up going ahead.

“This quarter, the company registered a strong revenue growth of 39% and recorded significant increase in overall profit of over 85%, on account of the demand coming in from the infrastructure and telecom tower sectors. This, in turn is good news for companies like ours as we will benefit from this rising demand. We are confident of maintaining this current growth momentum,” said Shashank Agarwal, Joint Managing Director, Salasar Techno Engineering, while announcing December quarter results.

At 11:19 am; the stock was trading 7% higher at Rs 362 on the BSE, as compared to 0.45% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with 55,000 shares changed hands so far against an average 16,000 shares that were traded daily in past two weeks, the BSE data shows.