4:1 Bonus Issue: Smallcap Engineering Stock Rallied 23% In 5 Days, Beats Nifty 50 By 90.59%; Do You Own?

Smallcap stock, Salasar Techno Engineering has been on a bullish trend for five consecutive sessions, rising by a whopping 23.3% on BSE. This has expected its month-on-month performance with gains of nearly 27%. One of the key factors for the uptrend is FII appetite in Salasar which has increased. In 2024, the multi-bagger has rewarded investors with bonus issues.

Salasar Techno Engineering:

The stock ended at Rs 22.04 apiece on BSE, up by 2.08% after market hours of Wednesday, with a market valuation of Rs 3,734.17 crore. The stock's 52-week high and low is at Rs 34.08 apiece and Rs 8.71 apiece respectively.

In 5 consecutive sessions, the stock zoomed by 23.27% on BSE. YTD, the stock is up by 65%. In 1 year, the stock emerged as a multibagger with gains of 121.29%. Due to the latest bulls trend, Salasar's all-time gains have been extended to 754.26%.

Salasar Techno Engineering FIIs/FPIs buying:

Foreign institutional investors (FIIs) holding in Salasar Techno stood at 8.42% by the end of the June 2024 quarter, compared to the 6.27% holding in the April 2024 quarter.

Also, Axis Securities pointed out that with 115.2% outperformance on NSE, Salasar stock beats Nifty 50 by 90.59%. While FII shareholding in Salasar Techno Engineering Ltd has increased by 34.27% in past 3 Months.

Salasar Techno Engineering Bonus Issue:

Earlier this year, in February, Salasar Techno turned ex-bonus for its bonus issue ratio of 4:1. This meant that the company allotted 4 free shares on the existing 1 equity share.

Notably, in Q1FY25, the company posted a 3.4% growth in net profit to Rs 10.49 crore compared to the same quarter a year ago. EBITDA climbed by a whopping 19.6% YoY to Rs 28.2 crore, while revenue from operations was at Rs 294 crore, up by 12.3% YoY.

As of the June 2024 quarter, the company's order book is at Rs 2,401.9 crore. In terms of sales mix for Q1 FY25, Steel Structures stood at 64%, EPC from Power Transmission sales stood at 32% and EPC from Railway sales stood at 4%.

Incorporated in 2006, Salasar Techno is a provider of customized steel fabrication & infrastructure solutions in India. It provides 360-degree solutions by carrying out engineering, designing, fabrication, galvanization and deployment.

Salasar Techno's product portfolio includes telecommunication towers, power transmission line towers, smart lighting poles, utility poles, high mast poles, stadium lighting poles, monopoles, substation structures, solar module mounting structures, railway electrification (OHE), Road & Railway Over-Bridges (ROB) and customised galvanized & non-galvanized steel structures. Salasar Techno's services include providing complete Engineering, Procurement & Control (EPC) for projects such as rural electrification, power transmission lines and solar power plants. The Company is among the leading manufacturers with the current installed capacity of 2,11,000 MTPA having supplied, 50,000+ Telecom Towers, ~885 km of Power Transmission Lines, ~695 km Railway Track, to 600+ clients in 25+ Countries.