The shares of this smallcap stock surged around 10 percent in Wednesday’s trading session after receiving an order worth Rs. 586.28 crores from PowerGrid Corporation of India Limited. The stock has delivered around 50 percent returns to its shareholders in one year.
Price Movemnet:
With a market capitalization of Rs. 3,284 crores, the shares of Bajel Projects Ltd started Wednesday’s trading session on a higher note at Rs.293.95, gaining around 10 percent compared to its previous close of Rs. 267.70 and are currently trading at Rs. 283 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had been awarded a supply of Goods and Services contract by PowerGrid Corporation of India Limited for and on behalf of their project-specific SPV i.e. Beawar‐ Mandsaur Transmission Limited worth Rs. 586.28 crores.
The scope of work includes the Transmission Line Package TL01 for 765 kV D/c Beawar – Mandsaur PS Transmission Line – Part I associated with “Transmission System for evacuation of power from Rajasthan REZ Ph‐IV (Part‐2: 5.5GW) (Jaisalmer/ Barmer Complex) Part‐D” through Tariff Based Competitive Bidding (TBCB) route.
Financials:
Looking at the company’s financial performance, the revenue zoomed by 73 percent from Rs. 275.08 crores during the December quarter to Rs. 489.16 crores in the March quarter. In addition, the net profits magnified by 110 percent from Rs. 3.36 crores to Rs. 7.07 crores during the same period.
Customer Base:
Bajel Projects has established a strong reputation and a diverse clientele, which includes major entities like Power Grid Corporation of India Ltd and international organizations such as Zambia Electricity Supply Corporation and Kenya Power & Lighting Company.
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Important financial Ratios:
In terms of key financial metrics, the company reported a return on equity of 0.75 percent and a return on capital employed of 5.01 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 0.36 percent during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters control 62.72 percent of the stake, Foreign Institutional Investors (FIIs) own 0.29 percent, Domestic Institutional Investors (DIIs) hold 7.83 percent, and Retail Investors possess the remaining 29.17 percent of shares.
Company Profile:
Bajel Projects Ltd is a prominent company specializing in power infrastructure, particularly in the sectors of power transmission and power distribution. It operates as a part of the Bajaj Group and was established as a separate legal entity from Bajaj Electricals Ltd in 2022.
Written by Vaibhav V Patil
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