4:1 Bonus Issue Allotment: Rs 30 Smallcap Stock Hits New Record High, Rises 115% In 1 Months; Q3 Profit Up 57%

Salasar Techno Engineering, a multi-bagger smallcap stock trading over Rs 30 per share, after turning ex-bonus, recorded a Q3 profit of Rs 167.5 million up by a whopping 56.8% YoY. The company has approved the allotment of bonus shares in the ratio of 4:1. Also, the stock has given hefty returns in a month, a staggering 115% on BSE.

Salasar Techno Engineering Share Price:

Salasar Techno's share price locked at a 5% upper circuit of Rs 30.92 apiece on BSE during Monday's trade. This was also its new all-time high. The stock's market cap is at Rs 4,880.80 crore.

In the past five trading sessions, Salasar has gained by nearly 23%, while in a month, the upside is 114.57%. Meanwhile, in six months, the stock jumped nearly 208% as of now. In a year, Salasar has rallied by 236%.

Salasar Techno Engineering Q3 Results:

In Q3FY24, Salasar's Revenue from Operations grew by 26.2% from Rs. 2,408.0 Mn in Q3 FY23 to Rs. 3,038.8 Mn in Q3 FY24 and by 18.4% from Rs. 7,102.0 Mn in 9M FY23 to Rs. 8,411.0 Mn in 9M FY24.

While EBITDA increased remarkably by 55.7% from Rs. 240.6 Mn in Q3 FY23 to Rs. 374.6 Mn in Q3 FY24 and by 38.7% from Rs. 619.6 in 9M FY23 to Rs. 859.6 Mn in 9M FY24 led by an increase in the scale of operations. Notably, EBITDA margins exhibited impressive growth of 230 bps from 10.0% in Q3 FY23
to 12.3% in Q3 FY24 and of 152 bps from 8.7% in 9M FY23 to 10.2% in 9M FY24.

Further, PAT increased by 56.8% to Rs. 167.5 Mn in Q3 FY24 and by 41.0% to Rs. 359.6 Mn in 9M FY24. PAT margins grew by 112 bps and 68 bps to 5.5% in Q3 FY24 and 4.3% in 9M FY24 respectively.

"We are happy to share with you our robust business and financial performance for Q3 and 9M FY24. Our revenue from operations increased by 26.2% and 18.4% to Rs. 3,038.8 Mn in Q3 FY24 and Rs. 8,411.0 Mn in 9M FY24 respectively. Our EBITDA margins increased by 230 bps and 152 bps to 12.3% in Q3 FY24 and 10.2% in 9M FY24 respectively. PAT margins improved by 112 bps and 68 bps in to 5.5% in Q3 FY24 and to 4.3% in 9M FY24," said the management of the company.

Coming to the quarter, Salasar said, "We added a significant project in our order book reflecting our growing presence in the infrastructure solutions and engineering sector. We secured a significant EPC contract from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) valued at Rs. 3,640 Mn."

Looking ahead, Salasar said, Salasar said that "In order to actively contribute towards the India's growth journey, we are in process of raising Rs. 8,060.4 Mn via preferential allotment of equity shares and warrants to promoter and non-promoter, public category. These funds will be mainly utilised towards financing of acquisition, capex, working capital requirements, and general corporate purposes."

Moreover, Salasar said, "We remain focused on our core mission of delivering exceptional engineering and infrastructure solutions to our customers while driving sustainable growth for our stakeholders. We will continue to invest in our capacity and capability, to provide key infrastructure elements for supporting India's global
competitiveness, be it in power transmission, railways electrification, telecom, smart cities, bridges, heavy structures, and other infrastructure."

Salasar Techno Engineering Bonus Shares:

On February 3rd, the company's board approved the allotment of 126,28,21,120 equity shares of re 1/- each by way of Bonus Issue to the members whose names appear in the ROM as of February 1, 2024.

Salasar's bonus issue record date and ex-dividend date were February 1, 2024.

The ratio of 4:1 means that Salasar Techno is issuing 4 new bonus shares for every 1 existing equity share.

Over the years the company has served over 600 customers, supplied 50,000+ Telecom towers, Laid ~813 KMs of Power Transmission Lines, and ~682 Railway Track KMs.