By Shares of Bondada Engineering soared to touch the 5% upper circuit limit during early morning trade today, reaching ₹2,625 per share and breaking a five-day losing streak. This rally was sparked by the announcement that the company secured a new order worth ₹316 crore from Reliance Projects & Property Management Services Limited. The contract covers TG Main SP O&M facilities for fiber, FTTx, and tower services, as stated in the company’s exchange filing.
This recent order is the second significant win for Bondada Engineering in less than a month. In late June, the company landed a ₹14 crore order from Goldi Solar Private Limited for the installation and commissioning of solar power plants and the supply of Watt power inverters in Jambusar, Gujarat. Additionally, in June, Bondada Engineering was awarded a contract from Bharti Airtel for supplying 6-meter-height GI poles weighing 60 kg (hot-dipped galvanized) without bases.
The company also received a letter of award from NLC India for a project valued at ₹930 crore. This project involves the balance of system work for setting up a 600 MW grid-connected solar power project at Khavda in Gujarat, including operations and management for three years.
The news of these multiple order wins has significantly buoyed Bondada Engineering’s stock performance. The stock ended June with a remarkable gain of 55.25%, resulting in a gain of 200% over the past four months. Since the start of the year, the stock has rallied an impressive 561%, climbing from ₹408 per share to the current price of ₹2,625. Bondada Engineering’s shares were listed on the BSE on August 30, 2023, at a price of ₹142.50 apiece. Taking the current market value into account, they are trading 1742% higher than their IPO price.
The company has also reported strong financial growth. For FY24, Bondada Engineering recorded a consolidated EBITDA of ₹71.5 crore, a significant increase of 137% compared to ₹30.2 crore in the previous year. The consolidated revenue for FY24 grew by 117% to ₹800 crore, reflecting an impressive revenue trajectory from ₹7 crore in FY 2013 to ₹800 crore in FY 2024, achieving a compound annual growth rate of 53%.
In terms of profitability, Bondada posted a consolidated net profit of ₹46.3 crore for FY24, up by 170% from ₹17.1 crore in the previous year. The earnings per share (EPS) for the fiscal year stood at ₹23.14, compared to ₹10.53 in the previous year. As of March 31, 2024, the company’s consolidated net worth was ₹168 crore.
Bondada Engineering’s order book at the end of FY24 stood at ₹1,747 crore, with an order pipeline of ₹1,260 crore. During the fiscal year, the company successfully completed its first Independent Power Producer (IPP) project, with a capacity of 2.80 MW, under a 25-year Power Purchase Agreement (PPA) with BHEL.
The latest developments and financial performance underscore Bondada Engineering’s strong growth trajectory and potential for continued success in the market. Investors are optimistic about the company’s future, driven by its strategic order wins and robust financial performance. The market will be closely watching Bondada Engineering’s next moves, especially with the recent flurry of contracts and the company’s ambitious plans for expansion and profitability.
