Salasar Tech at 20% UC

Salasar Technology, a stock which dropped almost 60% since Oct’24, is today the toast on Dalal Street. From its close of Rs.8.07, the stock zoomed to hit the 20% UC of the day at Rs.9.68.

In May last year, the company, for Rs.178 crore acquired EMC, an engineering, procurement and manufacturing (EPC) firm. This was purchased through an e-auction facilitated by the liquidator. The objective of this buy was to strengthen its market position as a leading engineering and infrastructure company, particularly in power transmission and substation projects.

And in this vein, Salasar on 21^st March’25 announced that its Board of Directors will meet on March 26, 2025, to consider and approve the proposed amalgamation of EMC with the company and this is what has led to a spurt in the stock price. This now qualifies Salasar as a bidder for executing high-margin 765 kV transmission line, substations, and industrial power system projects, areas with limited competition but high growth potential.

The company had ended Q3FY25 with a 23% (YoY) rise in consolidated sales at Rs.375 crore on which net profit came in 28% lower at Rs.12 crore. In February 2025, the company issued bonus shares in a 4:1 ratio, enhancing shareholder value.