Stock engaged in providing EPC and O&M services to companies operating in telecom, solar energy, and infrastructure hit a 5 percent upper circuit in the day’s trade upon receiving solar projects worth Rs. 1,132 Crores from the Maharashtra Government.
Price Action
With a market capitalization of Rs. 6,717 Crores, the shares of Bondada Engineering Limited were trading at Rs. 622 per equity share, up 3 percent from its previous day’s close price of Rs. 603.90.
What Happened
Bondada Engineering Limited engaged in offering engineering, procurement, and construction (EPC), operation, and maintenance (O&M) services has received multiple work orders from Maharashtra State Power Generation Company Limited for a total consideration of Rs. 1,132.24 Crores.
The first work order is for the design, engineering, supply, erection, testing, and commissioning of a crystalline-mounted solar PV power plant including 3 years of Operation & Maintenance on an EPC basis at 33/11 kv across various districts of Maharashtra for a consideration of Rs. 763.16 Crores.
The Second work order involves the design, engineering, supply, and unloading of PV modules, erection, testing, and commissioning of Crystalline ground-mounted solar PV technology grid interactive distribution agriculture feeder solarization by solar PV power plant including 3 years of Operation & Maintenance on EPC basis at 33/11 kv across various districts of Maharashtra for a consideration of Rs. 369.08 Crores.
About the Company
Bondada Engineering Limited provides engineering, procurement, and construction (EPC), operation, and maintenance (O&M) services to companies operating in the 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. 1,260 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.
It has incorporated a wholly-owned subsidiary company “Bondada Green Engineering Pvt Ltd” which mainly deals with the manufacturing of Solar MMS, Telecom towers, and Telcom, making it self-sufficient.
Financials & Ratios
Its Revenue from operations grew by 116 percent YoY 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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