The shares of this Smallcap stock with an order book of over Rs. 5,000 Crores and operations across solar, railway and other industries hit a 5 percent upper circuit upon receiving a new work order worth Rs. 836 Crores.
Bondada Engineering ltd. is a small cap company With a market capitalization of Rs. 5,130 Crores, the shares of Bondada Engineering Ltd hit a 5 percent upper circuit and closed at Rs. 466.30 per equity share, from its previous day’s closing price of Rs. 444.10.
Bondada Engineering ltd has received a significant order from Tamil Nadu green energy corporation limited (TNGEC) Marking a major milestone in its clean energy journey. The company secured a letter of award for setting up of a 400 MWg battery energy storage system at vellalaviduthi and Thenampatty in Tami Nadu.
This project stands out as the highest storage capacity order ever received by bondada engineering limited, The long-term vision of achieving 10GW capacity in the green energy sector by 2030. The value of the project is approximately Rs. 836.06 Crores and it is to be executed over 18 months and value will be received over a period of 12 years as it is under BOO model. The project will be executed on a Build-own-operate (BOD) model under tariff based competitive building,supported by the state viability gap Funding scheme.
This initiative contributes to India’s National Framework for Energy Storage Systems (NFESS) 2023 and supports Tamil Nadu’s renewable energy target of 50% by 2030. The system will help enhance grid stability,manage peak demand and integrate renewable sources effectively.
Bondada Engineering Limited provides engineering, procurement, and construction (EPC) services and operations and maintenance (O&M) services to companies operating in the telecom, solar energy and other industries.
The company has a strong order book of 5044 crores, from its major 4 sectors. It received from renewable energy sector 71.15 percent, 21.62 percent from telecom industry and 7.21 percent by merging railways and manufacturing products like AAC blocks ,telecom towers , solar module moulting structures.
Coming to the revenue segmentation, it currently generates 58 percent of its revenue from solar projects from 28 percent last year, 28 percent from telecom from 52 percent(FY24) and lastly 14 percent from other products from 20%(FY24). This shows a strategic shift of focus towards solar from telecom.
Its revenue from operations grew by 116 percent from Rs. 505 Crores to Rs. 1,091 Crores, accompanied by profits of Rs. 31 Crores to Rs. 79 Crores. Bondada Engineering limited sales grew over 46.9% CAGR and its profit grew over 61% profit over 5 years.
Written by: Sudeep Kumbar
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