5:1 stock split & Rs 1,747 crore order book: Multibagger solar company bags new orders worth Rs 5,75,74,73,650 from Lumina Clean Energy; Purelight Energy & VVKR Photovoltaics Energy

The shares of the company have an ROE of 37 per cent and an ROCE of 36 per cent.

On Tuesday, shares of Bondada Engineering Ltd were locked in a 5 per cent upper circuit to Rs 3,684.45 per share from its previous closing of Rs 3,509. The stock also made a fresh 52-week high of Rs 3,684.45 per share and its 52-week low of Rs 142.50 per share.

Bondada Engineering Limited has secured a significant contract to design, build, and commission solar power plants in Maharashtra. This project is part of the Indian government's PM-KUSUM initiative and the state's Mukhyamantri Saur Krushi Vahini Yojana 2.0 scheme, which aims to solarize agricultural feeders in the state. The contract was awarded by three special purpose vehicles (SPVs): Lumina Clean Energy Private Limited, Purelight Energy Private Limited, and VVKR Photovoltaics Energy Private Limited. These SPVs are backed by Paradigm IT Technologies Pvt Ltd and Metalcraft Forming Industries Pvt Ltd, both Indian software companies.

The scope of the project is broad and encompasses the entire lifecycle of the solar power plants. Bondada Engineering will be responsible for the design, surveying the land, procuring all necessary equipment, installing the plants, testing them to ensure functionality, and finally commissioning them for operation. Additionally, the project includes building associated 11 kV lines to connect the plants to the grid and installing a remote monitoring system to track the plants' performance. The total capacity of these distributed solar power plants will be 170.40 MW on a DC basis. The contract value is substantial, amounting to Rs. 575,74,73,650 inclusive of GST. This win is a major boost for Bondada Engineering and positions them as a key player in India's growing renewable energy sector.

Earlier, the Board of Directors of the company approved a stock split in the ratio 5:1 i.e., the existing 1 equity share of the company having a face value of Rs 10 each fully paid-up shall be sub-divided/split into 5 equity shares having a face value of Rs 2 each fully paid-up. The record date for the stock split is yet to be determined.

Incorporated in 2012, Bondada Engineering Limited provides engineering, procurement, and construction (EPC) services and operations and maintenance (O&M) services to companies operating in the telecom and solar energy industry. As of March 31, 2024, the company’s order book stands at Rs 1,747 crore and in the pipeline at Rs 1,260 crore.

The company has a market cap of over Rs 7,959.17 crore. According to the annual results, the net sales increased by 116 per cent to Rs 801 crore and the net profit increased by 156 per cent to Rs 46 crore in FY23 compared to FY22. The stock gave multibagger returns of 2,485.6 per cent from its 52-week low of Rs 142.50 per share. The shares of the company have an ROE of 37 per cent and an ROCE of 36 per cent. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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