Small-Cap Multibagger Reports 1,200 Per cent Returns & Rs 5,342 Crore Order Book: The Company Secured Work Order from SR Power Systems India to Supply of 220KV MS Tower Parts
The stock price has given 105 per cent multibagger returns in a year and whopping 1,200 per cent returns in the last 1.5 years, since its listing in Septemeber 2023.
Bondada Engineering Limited, through its subsidiary Bondada Green Engineering Private Limited, has secured a significant work order from SR Power Systems India Private Limited. This order involves the supply of 220KV MS tower parts to be delivered in Mancherial, Telangana, with a contract value of Rs. 4.91 crore, inclusive of GST. The order is expected to be executed within one week following the approval of drawings. This development marks a strategic win for Bondada Engineering, emphasising its capabilities in the engineering and construction sector. The company has clarified that there is no interest from the promoter group in the entity awarding the order, and the transaction does not fall under related party transactions. This order is a testament to Bondada Engineering's growing influence and operational capacity in the domestic market, particularly in the telecom infrastructure domain.
Bondada Engineering Limited, established in 2012, specialises in engineering, procurement, and construction (EPC) services, along with operations and maintenance (O&M) services, primarily catering to the telecom and solar energy sectors. The company has forged strong partnerships with major telecom operators such as Reliance Jio, Airtel, Indus, and BSNL, successfully installing over 12,500 telecom towers and laying a 4,300-kilometre optical fibre cable network. In the solar sector, it has installed power plants with a cumulative capacity exceeding 240 MW as of FY24. The EPC segment, which constitutes 70 per cent of its business, saw a revenue growth of 236 per cent between FY22 and FY24.
DSIJ offers a service 'Pop Stock" with recommendations for intraday trading based on research and analysis to help subscribers make healthy profits. If this interests you, then do download the service details pdf here
The company also manufactures a range of products, including telecom towers and solar mounting structures, with a segment revenue growth of 86 per cent in the same period. Bondada Engineering's order book stands at over Rs 2,400 crore as of June 2024, with significant orders contributing to its robust growth trajectory. The company is expanding its manufacturing capabilities and product portfolio, including the recent inauguration of Bondada Industrial Park-II for enhanced production capacity.
As of October 2024, our order book stood at Rs. 5,342 crore. These orders are expected to be delivered over the next 12 to 18 months. In just six months, the company's order book has grown significantly from Rs. 1,759 crore to Rs. 5,342 crore, an impressive 3x increase. With this strong order book, we are well-positioned to achieve solid performance for further years.
In FY24, the company posted a revenue of Rs 800.72 crore, registering a 116.07 per cent growth compared to Rs 370.59 crore in FY23. The net profit for the year stood at Rs 44.73 crore, up 167.20 per cent from Rs 16.74 crore in the previous financial year.
With a PE ratio of 62.4x, the company trades at a premium compared to the industry PE of 30.9. The company has a ROCE of 35.5 per cent and an ROE of 37.17 per cent. The 52-Week High is Rs 736.89, and the 52-Week Low is Rs 170.43. The stock price has given 105 per cent multibagger returns in a year and whopping 1,200 per cent returns in the last 1.5 years, since its listing in Septemeber 2023.
The current market price of the stock is Rs 371.65, with a market capitalisation of Rs 4,081.70 crore.
Disclaimer: The article is for informational purposes only and not investment advice.