The Indian benchmark equity indices ended Friday’s trading session on a positive note as Nifty hit a fresh record high on June 14. The major indices were driven by the auto and consumer durable sectors.
The NSE Nifty 50 gained 66.70 points or 0.29 percent to finish the day’s trading at 23,465.60 while the BSE Sensex closed 181.87 points or 0.24 percent higher at 76,992.77.
Listed below is a smallcap stock that has delivered multibagger returns of 1,528 percent to its stakeholders in just 11 months:
With a market capitalization of Rs. 5,264 crores, the shares of Bondada Engineering Ltd started Friday’s trading session on a higher note at Rs. 2,436.80, locking 5 percent upper circuit, also recorded as the company’s fresh 52-week high compared to its previous close of Rs. 2,320.80 apiece.
In August 2023, the stock price was trading at Rs 150 exhibiting a gain of around 1,528 percent compared to the current price. For example, if someone had invested Rs. 1 lakh into the company’s stock 11 months ago, it would have converted to approximately Rs. 16.28 lakhs now.
Coming onto the company’s financial statements, The revenue increased by 71 percent from Rs. 295.71 crores during H1FY24 to Rs. 505 crores during H2FY24. In addition, the net profits surged by 111 percent from Rs. 14.87 crores to Rs. 31.42 crores during the same period.
Comparing these metrics on a YoY basis, the revenue rose by 99 percent from Rs. 253.63 crores during H2FY23 to Rs. 505 crores in H2FY24. On the other hand, the net profits magnified by 146 percent from Rs. 12.78 crores to Rs. 31.42 during the same timeframe.
As of March 2024, the company has an order book of Rs. 1,747 crores and Rs. 1,260 crores worth of orders are in the pipeline. Through its wholly-owned subsidiary, the company has entered into the LED lights business and has started getting orders.
Earlier, the company’s board of directors had approved to acquisition of a substantial stake of 30,000 equity shares of Rs 10 each in the paid-up equity share capital equivalent to 60 percent shares in Atpole the Technologies Pvt Ltd (ATPOLE).
With this acquisition, the company is planning to rapidly increase its print in the BLDC motor business segment by serving all-electric vehicle manufacturing companies by synergizing with its existing businesses.
Previously, Bondada Engineering had laid the foundation stone for the construction of ‘Bondada Industrial Park’ at Rampally, Hyderabad, to cater to global standard manufacturing facilities for its subsidiaries.
The industrial park is been constructed for the company’s subsidiaries such as SmartBrix Infra Technologies Private Limited to manufacture UPVC profile extrusion plants, UPVC windows and Aluminum Windows, followed by Atpole Technologies Private Limited to design and manufacture BLDC motors for electric vehicles and for Bondada E&E Private Limited to manufacture LED lights.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 26.79 percent and a return on capital employed (RoCE) of 22.7 percent for the period spanning FY22-23. Further, the net profit margin for FY23-24 stood at 5.78 percent.
Headquartered in Hyderabad, Bondada Engineering was incorporated in 2012. The company provides engineering, procurement, and construction (EPC) services and operations and maintenance (O&M) services to the solar energy and telecom industry.
Written By Vaibhav Patil
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