Salzer Electronics shares rise 17%, approach Rs 900 mark; here's why

Salzer Electronics shares surged 17% on Wednesday after the firm said it has received a patent for its disconnecting and earthing device for high-voltage applications. Trading volumes spiked, with approximately 40 lakh shares exchanging hands, far surpassing the 20-day average of just over 21,000 shares. Despite the sharp rally, the stock has recorded a 36% decline so far this year. Notably, Salzer Electronics has maintained a history of positive annual returns since 2019, including a notable 240% gain in 2024.

Salzer Electronics shares rose 16.69% to Rs 893.10 today against the previous close of Rs 765.30 on BSE. Market cap of the firm rose to Rs 1557.50 crore. 

The newly patented device is intended for traction and locomotive systems as well as other high-voltage power networks, combining requirements for safety and compact installation. The company said, "It offers a significant reduction in size compared to conventional models, featuring an innovative contact design and installer-friendly wiring arrangements that enhance both safety and ease of use." 

The newly patented product is expected to bolster Salzer’s position in the high-voltage electrical equipment sector, where competition includes other established component manufacturers.

D Rajesh Kumar, company’s joint managing director, commented, "Our goal was to design a high-voltage (1,000 volts) disconnecting and earthing device that delivers superior safety performance while offering tangible benefits in compactness, ease of installation and operational efficiency."

The innovation underlines Salzer Electronics’ focus on developing solutions tailored to evolving industry demands for safer and more efficient equipment.

March and October have been the only months this year when the stock has seen gains, reflecting generally subdued sentiment until the recent announcement. The considerable increase in trading volume suggests heightened interest from participants reacting to the patent development.

Since 2019, Salzer Electronics has consistently generated positive annual returns, providing a context for its long-term performance despite short-term volatility.