Bondada Engineering | Stock Performance Analysis | Market Updates

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.

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Bondada Engineering an SME small-cap stock bags new order

In the past six months the shares of the company have given multibagger returns of 542% after listing at a 90% premium.

About the Order

Bondada Engineering which is an engineering, procurement and construction (EPC) and operations and maintenance (O&M) services company today it has reported that it has received a work order from NLC India for a Balance of System (BOS) work for 50MW Solar Power Project including the O&M for three years amounting to Rs 81.34 crore (Including GST).

Earlier, the company had received a work order from Sundrops Energia to supply the equipment for the Solar Power Plant as per the agreement amounting to Rs 4.93 crore (Including GST). It has also been reported that the company stood at L1 in two tenders worth Rs 1126.80 crore from one of the PSU companies for the implementation of solar power plants to the tune of 275 MW. The order value includes both ECP and its maintenance for the next 10 years.

Stock Performance

In the last trading session, the stock closed at Rs 894.90. Today it opened at Rs 894.60 and closed around Rs 915, up by 2.25%. The company’s 52-week high stands at Rs 949.95, while its 52-week low stands at Rs 142.50. Currently, the company boasts a market capitalisation of approximately Rs 1970 crore. In just three months the company’s shares have yielded multibagger returns of 120.32%. Bondada Engineering was listed with a 90% premium at Rs 142.5 apiece on BSE SME on August 30, 2023. Since then it has given mind mind-blowing return of 542.10%.

About the Company

Bondada Engineering is engaged in the business of providing engineering, procurement and construction (EPC) services and operations and maintenance (O&M) services to its pan India customers operating in the telecom and solar energy industry.

Recently the company has acquired a 60% stake in Atpole Technologies Private Limited which is into BLDC motors design and manufacturing for 2-wheelers, 3-wheelers and 4-wheelers. The company see a lot of business potential in BLDC motors design and manufacturing in India. As of now, India is majorly dependent on import of the motors from other countries. Way forward, the company is also looking for EV charging stations which adds another dimension to Bondada’s growth strategy. Furthermore company added that the topline is anticipated to reach around Rs 500 crore in the next 5 years from this acquiring company alone.

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.