Multibagger stock engaged in providing EPC and O&M services to companies operating in telecom, solar energy, and infrastructure jumped 4 percent in the day’s trade upon declaring a record date for the split of equity shares of the company in the ratio of 1:5
Price Action
With a market capitalization of Rs. 6,870 Crores, the shares of Bondada Engineering Limited were trading at Rs. 3,188 per equity share, up 4.6 percent from its previous day’s close price of Rs. 3,048.25. It has delivered multibagger returns of 2,016 percent in a year.
Stock Split
The Board of Directors of Bondada Engineering Limited has considered and approved the subdivision/ split of equity shares of the company in the ratio of 1:5 where one equity share of the company with a face value of Rs. 10 will be split into 5 equity shares with a face of Rs. 2 and September 2, 2024 is fixed as the record date for Determining entitlement of Equity Shareholders for stock split.
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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 order book of the company stands at Rs. 1,747 Crores, and in the pipeline is Rs. 1260 Crores.
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.
It has a huge customer base which consists of famous players like Reliance Jio, Bharti Airtel, BSNL, KEC International, Indus Towers, ITI, and many more.
It has worked on more than 11,600 telecom sites in 7 states in India and completed contracts worth more than Rs. 515 Crores in the last 3 Fiscals in Telecom Tower EPC and Solar EPC segment. Provided EPC services to 3,432.74 RKM of OFC and 198 MW of solar power Plant.
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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