Salasar Techno Engineering , an infrastructure and engineering services company, witnessed a remarkable surge of nearly 35% over two consecutive trading sessions, drawing significant investor attention.

Stock Performance

The company's stock price jumped 15% on Tuesday, following Monday's 20% upper circuit gain. This impressive rally has pushed the stock above key technical levels, breaking its 100-day moving average on Monday and surpassing the 200-day moving average on Tuesday.

Trading Volumes

The surge was accompanied by extraordinary trading volumes:

These volumes indicate a significant increase in investor interest and activity surrounding the stock.

Company Overview

Salasar Techno Engineering operates in three main segments:

1. Steel structure manufacturing
2. EPC (Engineering, Procurement, and Construction) services
3. Telecom infrastructure

The company has a notable history in the Indian stock market, with its 2017 Initial Public Offering (IPO) being oversubscribed by over 250 times, showcasing strong investor demand at the time.

Recent Corporate Actions

Salasar Techno Engineering has undertaken several corporate actions to enhance shareholder value:

1. In 2024, the company issued a bonus, providing four additional shares for every one share held by investors.
2. In 2022, the company executed a stock split, potentially improving liquidity and accessibility for retail investors.

Current Stock Price and Year-to-Date Performance

Despite the recent surge, Salasar Techno Engineering's stock remains down 25% year-to-date. As of the latest trading session, shares were priced at ₹10.67.

The recent rally and increased trading volumes suggest renewed interest in the stock. Investors and market observers will be keenly watching to see if this momentum continues in the coming sessions.

Salasar Techno Engineering Limited , a prominent player in the steel structures and EPC projects sector, has released its financial results for the first quarter, showcasing resilience in its operations despite ongoing challenges.

Q1 Financial Highlights

The company reported a consolidated revenue from operations of ₹300.17 crore for the quarter, marking a slight increase from ₹293.99 crore in the same quarter last year. The net profit for the quarter stood at ₹8.79 crore, compared to ₹10.49 crore in Q1 of the previous fiscal year.

Segment Performance

Salasar Techno Engineering's business is divided into two main segments:

1. Steel Structures: This segment generated revenue of ₹170.35 crore.
2. EPC Projects: The EPC division contributed ₹138.94 crore to the total revenue.

Financial Position

The company's consolidated total assets stood at ₹1,781.57 crore, with total liabilities amounting to ₹985.61 crore.

Ongoing Investigations

The company disclosed that the Directorate of Enforcement (ED) conducted search operations at the premises of Chairman & Managing Director Alok Kumar and Joint Managing Director Shashank Agarwal on April 16. Salasar Techno Engineering stated that there have been no further developments in this case as of the date of the financial results announcement.

Preferential Issue Update

The company submitted its monitoring agency report regarding the utilization of proceeds from its ₹290.77 crore preferential issue of equity shares and fully-convertible warrants. CARE Ratings Limited, serving as the monitoring agency, reported no deviation from the stated objects of the issue.

Key points from the report include:

The monitoring agency noted that low share prices below the warrant exercise price may lead subscribers to let warrants lapse, potentially affecting project viability. However, the company maintains that promoters will exercise warrants and expects non-promoters to do the same within the 18-month timeframe.

Corporate Governance Updates

• The Board of Directors approved the re-appointment of M/s VAPS & Company as the Statutory Auditor for a second term of five consecutive years, subject to shareholder approval.
• M/s Deepika Madhwal & Associates was appointed as the Secretarial Auditor for a five-year term, also pending shareholder approval.
• The company acknowledged a fine imposed by the stock exchange for non-compliance with Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As Salasar Techno Engineering navigates through regulatory challenges and market fluctuations, the company's focus remains on maintaining operational stability and ensuring compliance with regulatory requirements.