Bondada Engineering Soars 5% on ₹316 Crore Order Win; Up 1742% from IPO Price

Bondada Engineering’s shares surged to hit the 5% upper limit in early morning trade, reaching ₹2,625 each, breaking a five-day losing streak. This rise was driven by the company securing a new order worth ₹316 crore from Reliance Projects & Property Management Services Limited. The order includes contracts for TG Main SP O&M facilities for fibre, FTTx, and tower services.

Second Major Order in a Month

This is the second significant order for Bondada Engineering in less than a month. In late June, the company received a ₹14 crore order from Goldi Solar Private Limited for installing and commissioning solar power plants and supplying Watt power inverters in Jambusar, Gujarat. Additionally, in June, Bondada secured a contract from Bharti Airtel for supplying 6-meter-height GI poles and received a ₹930 crore letter of award from NLC India for a solar power project in Gujarat.

Wealth Creator

Due to multiple order wins, the stock ended June with a 55.25% gain, resulting in a 200% increase in just four months. So far this year, the stock has rallied 561%, rising from ₹408 to ₹2,625. The shares were listed on the BSE on August 30, 2023, at ₹142.50 each. At the current market value, they are trading 1742% higher than their IPO price.

Financial Performance

The company reported a consolidated EBITDA of ₹71.5 crore for FY24, a significant 137% growth compared to ₹30.2 crore in the previous year. Consolidated revenue for FY24 grew by 117% to ₹800 crore. Bondada’s revenue has grown impressively, from ₹7 crore in FY 2013 to ₹800 crore in FY 2024, with a CAGR of 53%.

Profitability also improved, with 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 FY24 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.

During the fiscal year, Bondada 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 company’s order book at the end of FY24 was ₹1,747 crore, with an order pipeline of ₹1,260 crore, according to the Q4 earnings report.