This Bajaj Group stock has a market cap of Rs. 12,805 crore and rose over 4% within the first hour of markets open with volumes that are over 6x previous session’s and monthly average volumes.
The stock gained after announcing receipt of service contract by Power Grid Corporation of India Limited, aggregating to Rs. 347.29 crore. The stock trades 16% away from its 52 week high and has a high FII holding of 11% and DII holding of 12%.
In a filing dated 17th October 2023, Bajaj Electricals Ltd (“Bajaj Electricals”) informed of being awarded a service contract by Power Grid Corporation of India Limited, aggregating to Rs. 347.29 crore.
The order entails transmission line package TL01 for Bhadia-3 Sikar-II 765 KV DC line (part I) stretching 109 km associated with the transmission system for evacuation of power from REZ in Rajasthan (20 GW) under phase III part B1 through tariff based competitive bidding route. The above project will be completed in 15 months.
Earlier this month, the company was awarded a service contract by Power Grid Corporation of India Limited, aggregating to Rs. 97.65 crore. This project entails 765 kV extension works at 2 locations of Bhadia II and Sikar III in Rajasthan.
This project will also be completed in 15 months. Both the projects mentioned above do not fall under related party transactions with promoters having no vested interest in either of the parties.
Bajaj Electricals Ltd. produces a variety of electric fans, lighting products like lamps, torches, tubes, and a wide range of luminaries, as well as engineering and construction projects. In FY23, revenue grew 14% YoY to Rs. 5417 crore. Net profits during the same period grew 50% YoY to Rs. 231 crore indicating a 100 bps expansion in bottom line margin.
Written by Sandeep R
