Shares of the company clocked 5 percent upper circuit after announcing the industrial park construction. The shares have delivered a multibagger return of 217 percent to its investors in six months.
With a market capitalization of Rs. 1,027 crores, the shares of Bondada Engineering started Thursday’s trading session on a higher note at Rs. 475.30 compared to its previous close of Rs. 452.70. Within a few minutes of the opening bell, the shares clocked 5 percent upper circuit at Rs. 475.30, also recorded as the company’s fresh 52 -week high.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they 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.
Coming onto the company’s financial statements, the revenue increased by 11 percent from Rs. 334 crores during the June quarter to Rs. 371 crores in the September quarter. In addition, the net profits magnified by 80 percent from Rs. 10 crores to Rs. 18 crores during the same timeframe.
The company has an order book of Rs. 1695 crores and Rs.1245 crores worth of orders are in the pipeline. Furthermore, as of March 2023, the company’s order book for Telecom OFC EPC and O&M stood at Rs. 235.5 crores. 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.
Looking at the company’s important financial ratios, the return on equity stood at 26.79 percent during FY22-23 and the return on capital employed was recorded at 22.7 percent for the same period.
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 telecom and solar energy industry.
Written By Vaibhav Patil
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