Salasar Techno Engineering Jumps 4% on Commissioning New Zinc Plant in UP
Salasar Techno Engineering share price jumped more than 4% on September 26. This surge followed the commissioning of a new zinc galvanization plant in UP. During early trading, the stock was trading at ₹53.20 on the NSE. The company disclosed this pivotal development through a filing with BSE on September 25. Simultaneously, the company shared news of the resignation of Jitendra Kumar Sharma from the post of company secretary & compliance officer, effective September 24, 2023, for personal reasons.
Commissioning of New Plant
Salasar Techno Engineering's latest achievement is the successful commissioning of a new Zinc Galvanization plant. With an impressive annual capacity of 96,000 metric tonnes, this plant incorporates cutting-edge galvanization technology to ensure top-quality products. Located at the Hapur facility in Uttar Pradesh, this plant is poised to play a pivotal role in meeting the growing demand for premium galvanized products, particularly in industries such as transmission line monopoles and large-size structures. These structures are used in diverse sectors, including automotive, infrastructure, construction, and more. Salasar Techno Engineering's strategic expansion is poised to strengthen its market position and enhance its service portfolio.
Salasar Techno Engineering is renowned for offering tailor-made steel fabrication and infrastructure solutions. Its diverse product portfolio spans telecommunication towers, power transmission line towers, smart lighting poles, utility poles, high mast poles, stadium lighting poles, monopoles, railway electrification, and custom steel structures. This expansion not only reinforces the company's industry presence but also contributes to regional economic development through job creation.
The company's recent contracts include securing a substantial electricity transmission order valued at approximately ₹75.23 crore in Africa. The contract has been awarded by Energy Development Corporation Ltd (EDCL) for the Rwanda Transmission System Reinforcement and Last Mile Connectivity project.
Salasar Techno Engineering's stock has exhibited outstanding performance, outpacing the benchmark Nifty50 index. Over the past six months, the company's stock has delivered an impressive return of 45.83%, while the Nifty50 index returned 15.96% during the same period.
Quote from Management
Shashank Agarwal, Joint Managing Director at Salasar Techno Engineering, expressed his perspective, "The successful installation and commissioning of our new Zinc Galvanization Plant is a testament to our commitment to excellence and innovation. This facility will enable us to enhance our service to clients and meet the continuously increasing demand for top-quality galvanized products."
The small-cap company reported a total revenue of ₹262.35 crore in the April to June 2023 quarter, compared to ₹211.25 crore in the first quarter of the previous financial year. This signifies a notable year-on-year increase of over 24% in total revenue.
The company's net PAT (Profit After Tax) for the recently ended June 2023 quarter stands at ₹10.15 crore, whereas it was reported at ₹7.32 crore in the June 2022 quarter. This indicates a substantial year-on-year growth of 38.66% in net PAT.
This small-cap stock seems to be one of the favorites among foreign institutional investors (FIIs). According to the shareholding pattern of the company for the April to June 2023 quarter, Nomura Singapore holds 54.70 lakh company shares, equivalent to 1.73% of the total paid-up capital. Similarly, Forbes EMF possesses 1.28 crore shares, representing a 4.05% stake in the company.
Incorporated in 2006, Salasar Techno Engineering has steadily emerged as a prominent player in the engineering, designing, procurement, fabrication, galvanization, and EPC sectors. The successful commissioning of the Zinc Galvanization plant, coupled with recent contract wins, underscores Salasar Techno Engineering's commitment to growth and its ability to secure significant projects in the engineering and infrastructure sectors. The company's stock performance and recent developments highlight its position as a dynamic and forward-thinking player in the industry.
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