Bondada Engineering shares hit 5% upper circuit on ₹316 crore order win; up 1742% from IPO price

Shares of Bondada Engineering surged to touch the 5% upper circuit limit during today's early morning trade, reaching ₹2,625 apiece and breaking a five-day losing streak. The rally was sparked by the company securing a fresh order worth ₹316 crore from Reliance Projects & Property Management Services Limited.

This order includes contracts for TG Main SP O&M facilities for fiber, FTTx, and tower services, according to the company's exchange filing. 

This marks the second significant order win for Bondada Engineering in less than a month. In late June, the company received a ₹14 crore order from Goldi Solar Private Limited for the installation and commissioning of solar power plants and the supply of Watt power inverters in Jambusar, Gujarat.

Additionally, it was awarded a contract from Bharti Airtel for the supply of 6-meter-height GI poles weighing 60 kg (hot-dipped galvanised) without bases, also in June. In the same month, the company received a letter of award from NLC India for a project worth ₹930 crore.

The contract is for the balance of system work for setting up a 600 MW grid-connected solar power project at Khavda in Gujarat, India. Works also include operations and management for three years.

Wealth Creator

On the back of multiple order wins, the stock ended the June month with a stellar gain of 55.25%, resulting in a gain of 200% in just 4 months. In the current year so far, the stock has rallied 561%, rising from ₹408 apiece to the current price of ₹2,625 apiece.

The shares were listed on the BSE on August 30, 2023, at a price of ₹142.50 apiece.

Taking the current market value of ₹2,625 apiece into account, they are trading 1742% higher than their IPO price.

Financials

The company has reported a consolidated EBITDA of ₹71.5 crore for FY24, marking a significant growth of 137% compared to ₹30.2 crore in the previous year. The consolidated revenue for FY24 grew by 117% to ₹800 crore.

Its revenue trajectory has been impressive, growing from ₹7 crore in FY 2013 to ₹800 crore in FY 2024, achieving a CAGR of 53%.

In terms of profitability, Bondada recorded 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 the fiscal year stood at ₹23.14, compared to ₹10.53 in FY24. As of March 31, 2024, the company's consolidated net worth was ₹168 crore.

During the fiscal year, Bondada successfully 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.

Additionally, the company's order book at the end of FY24 stood at ₹1,747 crore, with an order pipeline of ₹1,260 crore, according to the company Q4 earnings report.

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