1. At a Glance – Steel, Scandals & Slim Margins
Salasar Techno Engineering Ltd is currently trading at ₹8.11 with a market cap of ₹1,419 crore. In the last 3 months, the stock is down nearly 21%. One-year return? A painful -27%. Meanwhile, the company trades at a P/E of 68.2 while industry median P/E stands at 27.9.
Q3 FY26 (Dec 2025 quarter) sales came in at ₹330.78 crore (down 11.83% YoY), PAT at ₹6.52 crore (down 55.06% YoY), and EPS at ₹0.03.
ROCE stands at 11%, ROE at a modest 4.1%, debt-to-equity at 0.43, and interest coverage at 1.99. Promoter holding has fallen to 46.59%, down from over 63% two years ago. Pledged shares stand at 4.97%.
And yet… there’s a ₹2,198 crore order book waiting to be executed.
So what’s happening here? Is this a steel-backed infra machine temporarily stuck in mud, or is this a high P/E story built on thin margins and heavy financing?
Let’s investigate.
2. Introduction – The Tower King with a Turbulent Script
Incorporated in 2006, Salasar Techno Engineering Ltd (STEL) manufactures galvanized steel structures and executes EPC projects across telecom, power transmission, and railways.
Sounds simple.
But nothing in Indian infra is ever simple.
This is a company that builds telecom towers, transmission lines, railway over-bridges, electrification structures, and even stadium lighting systems. It operates in sectors where government contracts dominate.
Translation? Big order books. Slow payments. Working capital gymnastics.
And then came April 16, 2025 — when the Enforcement Directorate searched the residences of the Chairman & MD Mr. Alok Kumar and Joint MD Mr. Shashank Agarwal. The company stated no business disruption.
But markets hate uncertainty.
Add promoter stake reduction. Add falling quarterly profits. Add low ROE.
And then add a ₹695 crore contract from RVNL.
Drama? Yes.
Opportunity? Maybe.
Confusion? Definitely.
Let’s peel the steel layer by layer.
3. Business Model – WTF Do They Even Do?
Think of Salasar as the company that builds the skeleton of India’s infrastructure.
You see telecom towers? They made those structures.
Transmission lines? They fabricate and erect them.
Railway electrification? They execute it.
Stadium floodlights? Yes, that too.
The business operates across three main verticals:
- Manufacturing galvanized steel structures
- Heavy steel structures division (~15,000 MTPA capacity)
- EPC execution for railway and transmission projects
They operate 3 manufacturing units in Hapur with installed capacity of 1.96 lakh MTPA.
Revenue mix (9MFY25):
- Steel Structure – ~21%
- EPC from Railway – ~35%
- EPC Transmission – ~4%
Telecom tower orders come on a rolling basis — ₹30–₹35 crore monthly inflow.
They serve clients like
