Shares of this microcap company jumped 4 percent in Tuesday’s trading session after receiving an order from Bharti Airtel. The shares have delivered a multibagger return of 186 percent to its investors in one year.
With a market capitalisation of Rs. 929 crores, the shares of Bondada Engineering Ltd started Tuesday’s trading session on a higher note at Rs. 440, gaining around 4 percent compared to its previous close of Rs. 425.75. The shares are currently trading at Rs. 430 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced receiving an order from Bharti Airtel to supply a 6 meter Height GI pole with a weight of 60kg (Hot Dipped Galvanised) without Base and supply of 6 meter Height GI pole with a weight of 66kg (Hot Dipped Galvanised) without Base, of 42,500 quantity amounting approximately to Rs. 27.58 crores in Haryana.
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.
The company has installed over 11,600 telecom towers and poles out of which, 7,700 telecom towers and poles were installed in the last three years. It has completed contracts worth more than Rs. 515 crores in the last 3 years in Telecom Tower EPC and Solar EPC segments.
Earlier, the company’s board of directors had approved to acquire 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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