Companies trading below Rs. 20 with order books exceeding market capitalisation often represent hidden gems in infrastructure. Such a robust order-to-market cap ratio signals strong business momentum and potential undervaluation. For investors, this presents a unique opportunity where market perception hasn’t caught up with business reality, suggesting significant upside potential.
Share Price Movement
The share price of Salasar Techno Engineering Limited fell down by 0.92 percent to Rs. 12.93 per share on Thursday, a decrease from its previous close of Rs. 13.05 per share. The market capitalisation now stands at approximately Rs. 2,232 crore as of January 09, 2025.
Order Book
The order book of Salasar Techno Engineering as of September 30th, 2024, totals Rs. 2,388 crore and shows a diverse composition spanning multiple segments. The largest portion consists of domestic EPC orders at Rs. 1,969. crore, followed by international EPC orders at Rs. 244 crore.
The remaining components include orders under the Heavy Steel Structure Division at Rs. 46 crore, monopoles at Rs. 74 crore, and export orders for telecom towers and poles at Rs. 55 crore. Additionally, STEL maintains a steady stream of regular monthly orders for telecom towers valued between Rs. 30-35 crore, which are separate from the current order book position.
Financial Highlights
According to its recent filing, in the quarter ending September 2024, Salasar Techno Engineering’s consolidated revenue from operations has increased by 2.3 percent YOY from Rs. 275.35 crore in Q2 FY24 to Rs. 281.49 crore in Q2 FY25 and decreased by 4.25 percent QoQ from Rs. 294 crore in Q4 FY24.
The company’s consolidated net profit has increased by 6.96 percent YoY, from Rs. 9.05 crore in Q2 FY24 to Rs. 9.68 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 7.72 percent QoQ from Rs. 10.49 crore.
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Market Outlook
The Indian electrical equipment market is projected to grow from $52.98 billion in 2022 to $125 billion by 2027, reflecting a strong CAGR of 11.68%. The construction equipment market is also expanding, with an estimated CAGR of 15% over the next five years. Government initiatives, including a Rs. 11.11 lakh crore infrastructure outlay in the 2024-25 Union Budget, offer attractive opportunities.
The Ministry of Road Transport & Highways aims to build 13,814 km of highways in FY 2024, expanding to 2 lakh km by 2025. Additionally, the Urban Infrastructure Development Fund will enhance infrastructure development in Tier 2 and 3 cities.
Shareholding Pattern
As of the September 2024 shareholding pattern, Salasar Techno Engineering Limited is primarily held by the promoters at 54.95 percent, foreign institutional investors hold 6.49 percent, and the public with 38.56 percent.
About Company
Salasar Techno Engineering Limited, originally founded as Salasar Petrochemicals in 2001, has grown into a key player in India’s steel fabrication and infrastructure sector. Based in Delhi, it rebranded and became a public company in 2016. With 1,310 employees, the company operates in steel structures and engineering, procurement, and construction (EPC) segments.
They manufacture products like telecom towers and solar panel supports and provide EPC services for projects like rural electrification. With three manufacturing units in Uttar Pradesh, the company has a capacity of over 211,000 metric tons annually. Through strategic partnerships and acquisitions, Salasar remains dedicated to innovative infrastructure solutions.
Written By Fazal Ul Vahab C H
Disclaimer
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