Shares of this recently listed Telecom stock hit the 10 percent upper circuit after the company received a work order from BHEL worth Rs 24.27 crores. Since its listing, the company’s stock has provided over 80 percent returns to its shareholders.
With a market capitalization of Rs 655 crores, the stocks of Bondada Engineering Limited opened the Wednesday’s trading session hitting the 10 percent upper circuit at a price of Rs 302.85 and currently is locked at the same price levels. The company’s stock is inching towards its 52-week high levels recorded at Rs 308.60 apiece.
Such sharp movements in the share prices today are witnessed after the company, through a regulatory filing with the BSE on 31st October 2023, intimated that it has received a work order from Bharat Heavy Electricals Limited (BHEL) worth approximately Rs 24.27 crores.
The order pertains to setting up of 2 MegaWatt (MW) Solar PV Projects on “Build Own Operate & Transfer” basis. The time period for executing the said order is decided to be 25 years.
Digging into the limited available financial records, the company has increased its operating revenues as well as net profits with the former increasing from Rs 334.11 crores during FY21-22 to Rs 370.59 crores during FY22-23, and, the latter, during the same period, shifting from Rs 10.14 crores to Rs 18.25 crores.
As a result of the same, the profitability metrics of the company has shown positive movements with the return on equity (RoE) increasing from 19.19 percent during FY21-22 to 26.79 percent during FY22-23, and, the return on capital employed (RoCE), keeping the timeframe the same, moving up from 19.04 percent to 22.70 percent.
Since the stock was recently listed in September 2023, the Q2FY24 shareholding pattern shows the company’s Promoters holding a 63.33 percent stake, the Public (retail) investors holding a 36.66 percent stake, and the remaining stake in the company held by the Foreign Institutional Investors (FIIs).
Incorporated in 2012, Bondada Engineering Limited is engaged in the business of providing telecom infrastructure services including cell site construction, erection, operation, and maintenance of telecom towers.
Moreover, the company provides O&M services to telecom and tower operating companies with preventive and corrective maintenance of passive infrastructure and equipment, backup power systems, etc.
Written by Amit Madnani
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