Bondada Engineering secures Rs 381.27 crore order from BSNL; stock climbs over 3%

The stock has witnessed significant buying activity as it has given returns of more than 60% in just a month.

During Thursday’s trading session, the Sensex and Nifty soared by 0.72% and 0.75%, respectively. In this positive market sentiment, the shares of Bondada Engineering Limited zoomed by 3.79%. Additionally, the stock touched the upper circuit of Rs 401.50 apiece on BSE. The company’s current market capitalisation is Rs 853.50 crore.

From a technical outlook, as of November 16, 2023, the stock’s 200-day moving average (DMA) stood at Rs 191.59, while the 50-DMA was observed at Rs 268.80. The current share price on BSE is Rs 402. In a recent development, the 50-DMA has crossed above the 200-DMA, signalling a robust and sustained upward trend over the long term.

About the company:

Established in 2012, Bondada Engineering Limited offers engineering, procurement, and construction (EPC) services, as well as operations and maintenance (O&M) services to companies operating in the telecom and solar energy industry.

Bondada Engineering Limited (BONDADA) has secured significant work orders from BSNL. The orders involve providing Infrastructure as a Service (IaaSP), including the supply and erection of Ground Based Towers (GBT) and Infrastructure Items.

Additionally, the contract encompasses subsequent Operations and Maintenance (O&M) for a duration of 5 years. The total amount for this project, focused on the Lakshadweep cluster, is Rs 34,35,68,800.

In the Q2 results season, let’s look at the company’s performance:

In the financial results for September 2023, the company demonstrated robust growth, with sales surging to Rs 2,957.18 crore compared to Rs 1,169.66 crore in the same period last year, marking an impressive growth of 253%. The EBITDA also witnessed a significant increase, reaching Rs 218.11 crore, a growth of 253% from the previous year.

The Profit Before Tax (PBT) showed remarkable expansion, reaching Rs 171.06 crore, reflecting a growth of 289%. The net profit exhibited robust performance, soaring to Rs 146.86 crore, a substantial growth of 338%. The EPS rose to Rs 8.61, representing a remarkable growth of 309%. These stellar financial figures underscore the company’s strong financial performance and strategic positioning in the market.

The company currently holds an Order Book of Rs 1,695 crore. Furthermore, the stock has witnessed significant buying activity as it has given returns of more than 60% in just 1 month.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.