Shares of this smallcap company locked 5 percent upper circuit after receiving an order from Reliance Projects & Property Management Services worth Rs. 316.82 crores. On a YTD basis, the shares have delivered more than 500 percent returns to its shareholders.
Price Movement:
With a market capitalization of Rs. 5,672 crores, the shares of Bondada Engineering Ltd started Friday’s trading session on a higher note at Rs. 2,625.55, clocking a 5 percent upper circuit compared to its previous close of Rs. 2,500.55 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that one of the Subsidiaries Bondada Managed Services Private Limited had received work orders from Reliance Projects & Property Management Services Limited worth over Rs. 316.82 crores.
As per the terms of the order, the company will mainly look at the operations and maintenance work of TG Main SP O&M Contract Facility, TG Main SP O&M Contract Fiber FTTx and TG Main SP O&M Contract Tower.
The contract is valued at Rs. 1,05,60,98,466 annually, spanning three years from July 1, 2024, to June 30, 2027, with a total contract worth over Rs. 316.82 crores.
Additionally, the company also announced that it would be considering the proposal for a stock split in its upcoming board meeting. Furthermore, the board meeting to consider and approve the stock split has been fixed on 15th July 2024.
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.
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Recent Development:
Previously, Bondada Engineering had 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 has 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.
Order Book:
As of March 2024, the company has an order book of Rs. 1,747 crores and Rs. 1,260 crores worth of orders are in the pipeline. Through its wholly-owned subsidiary, the company has entered into the LED lights business and has started getting orders.
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
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