Here's why Salzer Electronics shares are up 16% on very high volumes

Shares of Salzer Electronics Ltd. gained 16% on Wednesday, October 8, after it said it has received a patent for its product 'Disconnecting and earthing device for high-voltage applications'.

The newly-patented product is designed for use in traction and locomotive systems and other high-voltage power networks, where safe maintenance and compact installation are essential.

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 company said.

"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," D Rajesh Kumar, the company's joint managing director, said.

Salzer Electronics shares gained 16.3% to hit an intraday high of 889 apiece on Wednesday. The stock has also gained on very strong volumes. As many as 40 lakh shares of the company have changed hands, compared to their 20-day average of just over 21,000 shares.

Despite today's upmove, shares of Salzer Electronics have been underperformers this year, having declined 36% so far on a year-to-date basis. March and October are the only months this year when the stock has seen gains. However, the stock has delivered positive annual returns every year since 2019, including a 240% advance in 2024.

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