Salasar Techno Engineering saw a significant rise in its share price on Thursday, December 26, after the company announced that its board would consider the amalgamation of Hill View Infrabuild Ltd with itself at a meeting scheduled for next week. The small-cap stock, priced under ₹20, surged by up to 7% during morning trade.
Stock Performance and Gains
Salasar Techno Engineering opened at ₹13.79 on the BSE and quickly rose to an intraday high of ₹14.73, reflecting a 7% gain. This follows a remarkable 1,270% increase in the company’s stock price over the last five years, making it a multibagger for its investors.
Key Announcement and Upcoming Meeting
The company revealed in an exchange filing on December 25, 2024, that the board of directors will meet on Monday, December 30, 2024, to review and approve the proposed amalgamation of Hill View Infrabuild Ltd with Salasar Techno Engineering Ltd. This move is expected to have significant implications for the company’s growth and future outlook.
Earnings Update
For the September 2024 quarter, Salasar Techno Engineering reported:
- Revenue from sales: ₹281.49 crore
- Total revenue: ₹283.22 crore
- Net profit: ₹9.60 crore, up from ₹9.06 crore in the same period last year, although down from ₹10.5 crore in the previous quarter. The sequential decline was attributed to a slowdown in execution due to the monsoon season.
For the first half of FY25, the company posted:
- Sales: ₹575.49 crore
- Total revenue: ₹578.13 crore
- Net income: ₹20.09 crore, showing an improvement over ₹19.2 crore in H1 FY24.
Salasar Techno Engineering’s share price surge following the amalgamation announcement and its steady earnings growth highlights its ongoing business momentum. Investors will be watching closely for further developments from the upcoming board meeting.
