Shares of this micro-cap company clocked 5 percent upper circuit after acquiring a 60 percent stake in Atpole Technologies. In six months, the shares have delivered a multibagger return of 178 percent to its shareholders.
With a market capitalisation of Rs. 901 crores, Bondada Engineering Ltd shares started Monday’s trading session on a higher note at Rs. 408.25 compared to its previous close of Rs. 397.25. During the trading session, the shares clocked 5 percent upper circuit at Rs. 417.10 apiece.
Such a bullish movement in the share price was observed after the company in an exchange mentioned that the board meeting was held on December 29, in which the board approved to acquire a substantial stake of 30,000 equity shares of Rs 10 each in the paid-up equity share capital equivalent to 60 percent shares in Atpole Technologies Pvt Ltd (ATPOLE).
With this acquisition, ATPOLE will become a subsidiary company of Bondada Engineering. This will help the company in its foray into the Renewable Energy space as Atpole Technologies Pvt Ltd is a leading manufacturer of advanced torque motors and controllers for EV 2 and 3 Wheelers, Drones, Defence and Industrial application motors.
After the post-acquisition, the company is planning to rapidly increase its print in the BLDC motor business segment by serving all-electric vehicle manufacturing companies by synergizing with its existing businesses.
Coming onto the company’s financial statements, the revenue increased by 11 percent from Rs. 334 crores during the June quarter to Rs. 371 crores in the September quarter. In addition, the net profits magnified by 80 percent from Rs. 10 crores to Rs. 18 crores during the same timeframe.
Looking at the company’s important financial ratios, the return on equity stood at 26.79 percent during FY22-23 and the return on capital employed was recorded at 22.7 percent for the same period.
The company has an order book of Rs. 1695 crores and Rs. 1245 crores worth of orders are in the pipeline. Through its wholly-owned subsidiary, the company has entered into the LED lights business and has started getting orders.
Headquartered in Hyderabad, Bondada Engineering was incorporated in 2012. The company provides engineering, procurement, and construction (EPC) services and operations and maintenance (O&M) services to the solar energy and telecom industry.
Written By Vaibhav Patil
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