Salik Company’s shares have been on a remarkable upward trajectory, gaining significant momentum in recent months. The toll gate operator’s stock reached an unprecedented high of Dhs3.72 per share on January 19, buoyed by both its strategic expansion and the news of two new toll gates on the horizon. This surge, with shares spiking by nearly Dh1 or over 35% in just the past three months, brought considerable joy to stakeholders.
Salik Company share price
The buzz around Salik Company peaked on January 19, witnessing an 11% increase or Dhs3.8 per share when the announcement of two new toll gates hit the market. However, the enthusiasm prompted short-term investors to seize the moment for profit-taking, resulting in a modest 1.4% dip in early trade on Tuesday.
Since its debut on the Dubai Financial Market on September 29, 2022, Salik Company’s shares have soared, marking an impressive gain of over 75%. What makes this toll gate operator particularly enticing for investors is its business model, which operates with low capital intensity.
Two new Salik toll gates in Dubai
In a strategic move announced on January 19, Salik Company revealed its role in installing two new toll gates assigned by the Roads and Transport Authority. Positioned at Business Bay Crossing on Al Khail Road and Al Safa South on Sheikh Zayed Road, these toll gates aim to optimize traffic flow and alleviate congestion on vital Dubai routes. With these additions, Dubai’s total toll gates will now stand at 10.
ALSO READ:
Looking ahead, Salik anticipates a substantial increase in annual revenue-generating trips with the introduction of these new toll gates. The company has already distributed cash dividends of Dhs491.4 million or 6.5521 fils per share in April last year. Looking forward, starting from 2023, Salik Company plans to distribute 100% of its net profit as dividends, a move that could potentially fuel higher demand for its shares.
Adding to the positive outlook, a collaboration with Emaar Malls to implement barrier-free parking is expected to contribute to the company’s revenue growth. The operational launch of Salik’s system is slated for the third quarter of 2024.
tanvir@dubainewsweek.com
