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IPO Report
Salasar Techno Engineering Ltd
Issue Date
12th July-17th July 2017
Price
Rs 108/Share
Bid Lot
125 & in multiplethereof
Face Value
Rs 10/Share
Listing
BSE,NSE
Fresh Issue
3,321,000 Eq Shares
Pre Issue Eq Shares
0.99 Cr Eq Shares
Post Issue Eq Shares
1.33 Cr Eq shares
BRLM
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Company is a provider of customised steel fabrication and infrastructure solutions in India for Telecommunication Towers,
Transmission Towers & Substation Structures and Solar Module Mounting Structures. The objective of Company is to supply
customized, high-quality material to its impressive and evergrowing clientele. Co provide 360 degree solutions by carrying
out engineering, designing, fabrication, galvanization and deployment. Co’s products include Telecommunication Towers,
Power Transmission Line Towers, Smart Lighting Poles, Monopoles, Guard Rails, Substation Structures, Solar Module Mounting Structures and Customized Galvanized & Non-galvanized
steel structures. Co’s services include providing complete engineering, procurement and control for projects such as Rural
Electrification, Power Transmission Lines, and Solar Power
Plants.
The objects of the issue is to meet working capital requirement
worth of Rs 31.87 cr, general corporate purpose worth of Rs
2.5 Cr & meet issue expense worth of Rs 1.5 Cr.
Reasons to Subscribe:
Salasar has a strong customer profile and some of its major
customers are Bharti Infratel Ltd, Indus Towers Ltd, Huawei
Technologies Nepal Company Pvt Ltd, Reliance Jio Infocomm
Ltd, Acme Cleantech solution Pvt Ltd, ATC Telecom Infrastructure Pvt Ltd, U.P. Power Transmission Corporation Ltd, Indus
Towers Ltd, Prayatana Developers Pvt Ltd, Unitech Power
Transmission Ltd, Today Green Energy Pvt Ltd, Viom Networks
Ltd, Welspun Renewables Energy (P) Ltd etc.
Co’s Promoter and Managing Director, Mr. Alok Kumar has
over 41 years of experience in trading, manufacturing and fabrication of iron & steel and Mr. Shalabh Agarwal, Promoter and
Whole-Time Director of company, has over 18 years of experience in sugar industry and trading, manufacturing and fabrication of iron & steel.
Co’s order book of Rs. 5,761.16 million as of May 31, 2017, provides it with revenue visibility for the next financial year.
From a mere 44% capacity utilisation in FY 2012-13, co
reached a level of 91% capacity utilisation in FY 201617. This
necessitated co to increase its capacity further and therefore co
successfully completed the expansion plan in its subsidiary by
adding another 50000 MTPA galvanization plant.
Valuation
At price of Rs 108/share, co is bringing the issue at p/e multiple of
6.91 on post issue FY17 eps of Rs 15.62.
With decent fundamentals, co’s valuation look reasonable at current level. Hence we recommend “Subscribe” on issue.
Sarthi Capital Advisors Pvt Ltd
Registrar
Bigshare Services Private Ltd
Financial Statements
Rs Cr
Particulars
Revenue
Exp
Op Profit
OPM %
Other Income
Depreciation
EBIT
Interest
PBT
E/O Item
PBT After E/O
Tax
PAT
CSR
PAT
NPM %
Eq Cap
Reserves
Net Worth
Eq Shares (No)
EPS
Book Value
ROE (%)
ROCE (%)
Debt To Eq
FY14
292.37
269.24
23.13
7.91
0.20
1.95
21.37
11.07
10.31
0.00
10.31
4.05
6.26
0.00
6.26
2.14
4.88
52.04
56.91
0.49
12.83
116.72
11.00
7.59
1.39
Research Analyst: Astha Jain
FY15
330.11
302.14
27.97
8.47
0.25
5.95
22.26
10.03
12.24
2.09
10.15
3.83
6.32
0.06
6.27
1.90
4.98
59.48
64.46
0.50
12.59
129.49
9.72
9.01
1.11
FY16
310.01
280.94
29.06
9.37
0.19
3.09
26.16
8.75
17.41
0.00
17.41
6.23
11.18
0.14
11.04
3.56
4.98
70.52
75.50
0.50
22.18
151.67
14.62
13.25
0.74
FY17
384.29
343.52
40.76
10.61
0.35
3.29
37.83
7.27
30.56
-0.482
31.04
10.09
20.95
0.21
20.74
5.40
9.96
85.88
95.83
1.00
20.83
96.26
21.64
18.58
0.72
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