Shares of this consumer-durable stock under the ‘small-cap’ category jumped up to 9 percent in Monday’s trading session after the company bagged an order worth Rs 564.20 crores from Power Grid Corporation of India Limited (PGCIL).
With a market capitalization of Rs 12,680.78 crores, the stocks of Bajaj Electricals Limited started their trading session on Monday at Rs 1,167.95 and currently are trading at Rs 1,101.70. The company’s scrip witnessed an intra-day high, the same as its open price, indicating a gain of around 9 percent as compared to the previous close of Rs 1,072.20 apiece.
The bullish stock price behavior was observed after the company, through a regulatory filing with the exchange, informed the receipt of a service contract from ‘Power Grid Corporation of India Limited’ (PGCIL) worth Rs 564.20 crores. PGCIL, on behalf of its SPV M/s Ananthpuram Kurnool Transmission Limited, has awarded the contract to the company.
The order pertains to a new 400 kilovolts (kV) transmission line for 83.12 kms and 183 kms in Ananthapur and Kurnool, Andhra Pradesh respectively. The above project is decided to be completed within 21 months from the date of issue of the letter of award.
Digging into the consolidated financials, the company reported an increase in the prime business indicators such as the operating revenues as well as net profits. The operating revenues grew from Rs 4,813.01 crores during FY21-22 to Rs 5,429.26 crores during FY22-23, and, the net profits, in congruence, increased from Rs 124.41 crores to Rs 216.19 crores.
Due to the same, the profitability indicators supported the positive movements with the return on equity (RoE) moving up from 7.57 percent during FY21-22 to 11.98 percent during FY22-23, and, the return on capital employed (RoCE) taking an upward shift from 12.34 percent to 19.1 percent.
The company’s latest available shareholding pattern data shows the Promoters holding a 62.85 percent stake, and the Foreign Institutional Investors (FIIs) holding a 10.91 percent stake in the company.
With a business presence within as well as outside India, Bajaj Electricals Limited is associated with the manufacturing process and sale of consumer electrical appliances. The company operates through various business segments, some of which include consumer products, i.e., lighting & EPC products.
Written by Amit Madnani
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