Bondada Engineering Limited provides engineering, procurement, and construction (EPC), operation, and maintenance (O&M) services to companies operating in telecom, solar energy, and infrastructure.
Recently it has made a name for itself in daily news after consistently receiving telecom infrastructure orders from famous telecom players like Reliance Jio, Bharati Airtel, BSNL, and many more. Here is a quick review of the company
In the day’s trade on November 24, 2023, the shares of Bondada Engineering Limited closed at Rs. 443, down 1.51 percent from its previous day’s close price of Rs. 449.80, and its market capitalization is Rs. 959 Crores.
The company’s business segments include telecom towers, telecom Optic Fiber Cables, solar energy, and construction materials. As of March 31, 2023, the gross order book of the company was Rs. 1,520 Crores.
It has worked on more than 11,600 telecom sites in 7 states in India and completed contracts worth more than Rs. 515 Crores in the last 3 Fiscals in Telecom Tower EPC and Solar EPC segment. Provided EPC services to 3,432.74 RKM of OFC and 198 MW of solar power plant.
It has a huge customer base which consists of famous players like Reliance Jio, Bharti Airtel, Indus Towers, BSNL, KEC International, ITI, and many more.
India’s telecom tower base is expected to reach nearly 16.70 lakhs by FY 2030, from its current base of 7.54 lakhs towers. This would result in the addition of 1.30 lakh towers per annum, up from the current yearly addition of 60 to 70 thousand telecom towers per annum.
The cumulative capex required for the addition of 9 lakhs telecom tower would be ~Rs. 150,000 crores (assuming avg. capex of Rs. 10-25 lakhs per tower). Depending upon location, the annual cost for operating a telecom tower per annum is in the range of Rs. 3 – 6 lakhs, out of which the maintenance cost of the tower is ~10 percent of the total opex incurred.
The Telecom sector is the largest consumer of Optical fibre cables (OFC), accounting for more than 40 percent of global OFC consumption. As per TRAI, India had only 30 million fixed broadband internet users – as against 816 million mobile data users, as of the quarter ending September 2023, resulting in a huge market opportunity for OFC-related industries.
In the month of November 2023 itself, it received orders worth Rs. 472.54 Crores from big players like Bharat Sanchar Nigam Limited, Bharti Airtel Limited, and many more
Its revenue from operations grew 10.92 percent from Rs. 334.11 Crores in FY22 to Rs. 370.59 Crores in FY23, accompanied by increasing profits of Rs. 10.14 Crores to Rs. 17.85 Crores.
In FY23 it reported a return on equity (ROE) of 22.77 percent and a return on capital employed (ROCE) of 35.63 percent, it is making good returns on its equity and capital Employed.
It has delivered multi-bagger returns of 196 percent since the last three months of listing on the stock exchange. A shareholder’s investment of Rs. 1 lakh in the company would be Worth Rs. 2.96 Lakh in 3 months.
Written by: Bharath K.S
