Smallcap stock engaged in the business activities of Construction and development of real estate projects and sourcing, importing, and exporting a wide range of products, hit a 5 percent upper circuit in the day’s trade upon receiving work order worth Rs. 650 Crores from TATA Agro & Consumer Products
Price Action
With a market capitalization of Rs. 10,871 Crores, the shares of Bharat Global Developers Limited hit a 5 percent upper circuit in the day’s trade at Rs. 1,073.50 per equity share, from its previous day’s close price of Rs. 1,022.40
What Happened
Bharat Global Developers Limited engaged in the infra, sourcing, importing, and exporting a wide range of products in focus after its Agro Division secured a new supply work order from TATA Agro & Consumer Products for a consideration of Rs. 650 Crores.
Under this agreement, it will supply a range of premium agricultural commodities, including tea leaves, coffee beans, organic pulses, coconuts, groundnuts, mustard, and sesame seeds, as well as premium dry fruits such as almonds, cashews, nutmeg, and walnuts. The supply will be executed throughout the year in a phased manner.
This contract is expected to significantly enhance the top line and bottom line, contributing positively to the Company’s overall financial performance, with the expectation of anywhere between 11 percent to 14 percent margins in this contract as the service fee.
With a robust order book now exceeding Rs. 1,500 crores, including significant contracts with Reliance Industries and McCain India Agro, the company is well-positioned for accelerated growth.
Stock Split & Bonus Issue
Bharat Global Developers Limited has approved a bonus issue in the ratio of 10:8 where 10 equity shares will be issued for every 8 equity shares held in the company and the sub-division /split of equity shares is proposed in the ratio of 1:10 where one equity share with a face value of Rs. 1 will be split into 10 equity shares with a face value of Rs. 1.
About the Company
Bharat Global Developers Limited is engaged in the business activities of Construction and development of real estate projects on the own-account basis or on a fee or contract basis. It specialises in sourcing, importing, and exporting a wide range of products spanning industries such as textile, agriculture, consumer goods, and more
Financials & Ratios
Its Revenue from operations grew by 300 percent QoQ from Rs. 54 Crores in Q1FY25 to Rs. 216 Crores in Q2FY25, accompanied by profits of Rs. 3 Crores to Rs. 10 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 3.3 percent and a return on capital employed (ROCE) of 4.46 percent. It has reported a debt-to-equity ratio of 0.04.
Written by: Bharath K.S
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