The shares of this smallcap company clocked a 5 percent upper circuit in Monday’s trading session after inaugurating an industrial park to cater to global standard manufacturing facilities for its subsidiaries.
Price Movement:
With a market capitalization of Rs. 7,814 crores, the shares of Bondada Engineering Ltd started Monday’s trading session on a higher note at Rs. 697.95 compared to its previous close of Rs. 689. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 723.45 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had inaugurated “Bondada Industrial Park-II” at Ankireddipally, Hyderabad, to cater to global standard manufacturing facilities for its subsidiaries.
Bondada Ecobuild Private Limited (formerly SmartBrix Infra Technologies Private Limited) will focus on UPVC profile extrusion, UPVC windows and doors, and aluminium windows and doors.
Bondada Green Engineering Private Limited will specialize in solar structures, telecom towers and poles, transmission line towers and substation structures, crash barriers, and industrial cable trays.
The company had previously laid the foundation for “Bondada Industrial Park” at Rampally, Hyderabad, to provide global-standard manufacturing facilities for its subsidiaries.
Financials:
Looking at 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.
Recent Development:
Previously, the company also announced a 1:5 stock split. This means that each existing share with a face value of Rs. 10 will be subdivided into five shares, each with a face value of Rs. 2.
Furthermore, Bondada Engineering Limited has recently received a Letter of Award (LoA) from three companies. This significant contract, valued at Rs. 575.74 crore, pertains to the design, installation, and commissioning of a 170.40 MW solar power project in Maharashtra.
This initiative is part of the PM-KUSUM scheme, specifically targeting the solarisation of agricultural feeders within the Maharashtra State Electricity Distribution Company Limited (MSEDCL) jurisdiction.
Important Financial Ratio:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 27.55 percent and a return on capital employed (RoCE) of 37.25 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 5.78 percent.
Company Profile:
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
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
