Multibagger stock engaged in providing EPC and O&M services to companies operating in telecom, solar energy, and infrastructure hit a 5 percent upper circuit upon receiving a new work order worth Rs. 576 Crores to set up a solar powerplant.
Price Action
With a market capitalization of Rs. 7,959 Crores, the shares of Bondada Engineering Limited hit 5 percent upper circuit at Rs. 3,684.45 per equity share, from its previous day’s close price of Rs. 3,509. It has delivered a multibagger return of 2,363 percent in a year.
What Happened
Bondada Engineering Limited has received multiple work orders from Lumina Clean Energy Private Limited, Purelight Energy Private Limited, and VVKR Photovoltaics Energy Private Limited for a consideration of ~Rs. 575.75 Crores.
The said work order is for the Design, Survey, Supply, Installation, Testing, and Commissioning of grid-connected distributed 170.40 MW Solar Power Plants for the Solarization of selected Agri feeders at the Sub-station (SS) level in Maharashtra State Electricity Distribution Company Limited (MSEDCL) jurisdiction
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It also includes the EPC work for its associated 11 kV line to connect the plant with the concerned SS and Remote Monitoring System (RMS) of solar power plants under Mukhyamantri Saur Krushi Vahini Yojana 2.0 of PM-KUSUM Solar projects across various districts in the state of Maharashtra.
About the Company
Bondada Engineering Limited provides engineering, procurement, and construction (EPC), operation, and maintenance (O&M) services to companies operating in telecom, solar energy, and infrastructure sector.
The company’s business segments include telecom towers, telecom Optic Fiber Cables, solar energy, and construction materials. As of 31st March 2024, the company’s order book stands at Rs. 1,747 Crores, and the pipeline is Rs. 1260 Crores.
It has a strong customer base which consists of well-known players like Reliance Jio, Bharti Airtel, BSNL, KEC International, Indus Towers, ITI, and many more.
Bondada Engineering Limited’s IPO Price band was Rs. 75 per share, with 1600 shares lot size, and since its listing on the stock exchange it has delivered approximately 4835 percent returns.
It has incorporated a wholly-owned subsidiary company “Bondada Green Engineering Pvt Ltd” which mainly deals with the manufacturing of Solar MMS, Telecom towers, Telcom Poles, Transmission Towers, Crash Barriers, and industrial cable trays.
Financials and Ratios
Its revenue from operations grew by 116 percent from Rs. 371 Crores in FY23 to Rs. 801 Crores in FY24, accompanied by profits of Rs. 17 Crores to Rs. 46 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 37.2 percent and a Return on capital employed (ROCE) of 35.5 percent. It has reported a debt-to-equity ratio of 0.39.
Written by: Bharath K.S
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