Sumit Bilgaiyan
Salasar Techno enjoys 42 percent market share and all the major telecom operators are its customers having long term business relationship. The company has technical tie up with Rambol International for manufacturing and designing world class telecom towers of various qualities and range.
The current EBITDA margin is around 10 percent, which is expected to increase up to 11-11.5 percent on the back of huge order book, consistent demand and new projects for which the company has already submitted bid.
In FY17, Salasar Techno doubled its galvanizing capacity from 50,000 metric tons to 1,00,000 metric tonne. It currently has an EV/EBIT of 9.72 percent.
At the current market price of Rs 387, the company is trading at 11x multiple for FY19. We are recommending a buy with target of Rs 445.
Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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