Shares of a company providing engineering, procurement, and construction (EPC) services and operations and maintenance (O&M) services to companies operating in the telecom and solar energy industry moved up by nearly xx percent on BSE during Tuesday’s trading session. The stock is in focus after the management announced that it aims for Rs. 10,000 crores in revenue by 2030.
Price Movement
With a market cap of Rs. 4,049.8 crores, the shares of Bondada Engineering Limited closed in the green at Rs. 374.95, up by around 1 percent. The stock has delivered multibagger returns of 120 percent in one year, while around 8 percent of positive returns in the last one month. The stock hit its 52-week high at Rs. 753.98 on 28th August 2024, and compared to its closing price of Rs. 374.95, the stock is trading at a discount of nearly 50 percent.
Management Guidance
By 2030, Bondada Engineering aims to rank among the “Top Five EPC Companies in India” and targets a revenue of $1 billion, approximately Rs. 10,000 crores. The company has set a 10 GW mission for 2030, which includes 6 GW of solar EPC, 2 GW of BESS and other renewable energy sources EPC, and 2 GW of solar IPP. Bondada also plans to expand its presence in international markets, particularly in the Telecom and Renewable Energy sectors.
Order Book
The company’s robust order book, currently valued at Rs. 5,282 crores, is expected to be a crucial factor in driving revenue growth and sustaining an increase in its compound annual growth rate (CAGR). In addition to the existing order book, tenders submitted are valued at Rs. 2,337 crores, while tenders identified for participation total Rs. 5,760 crores.
In December 2024, one of Bondada’s top executives mentioned that the order book is projected to reach approximately Rs. 8,500 crore to Rs. 9,000 crore by March 2025, following the release of the March 2025 financial results.
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Financial Performance
Bondada Engineering experienced a significant growth in its revenue from operations, showing a year-on-year increase of around 62.5 percent from Rs. 295.7 crores in H1 FY24 to Rs. 480.6 crores in H1 FY25. Similarly, its net profit increased during the same period from Rs. 14.8 crores to Rs. 36 crores, indicating an impressive rise of nearly 142 percent YoY.
EBITDA for H1 FY25 increased by about 160 percent YoY to Rs. 56.7 crores, up from Rs. 21.8 crores in H1 FY24, while the EBITDA margins grew to 11.7 percent, from 7.3 percent, over the same period. The company’s revenue from operations grew at a CAGR of around 14 percent between FY21 and FY24, while the net profit jumped by nearly 72 percent CAGR over the same period.
Key Financial Ratios
In terms of key financial metrics, Bondada Engineering has a Return on Equity (RoE) of 37.2 percent and a return on capital employed (RoCE) of 35.5 percent. Additionally, the stock has a P/E ratio of 68.8, compared to the industry’s P/E ratio of 32.1, and its debt-to-equity ratio stands at 0.54.
About the Company
Incorporated in 2012, Bondada Engineering Limited is engaged in the business of providing engineering, procurement, and construction (EPC) services and operations and maintenance (O&M) services to companies operating in the telecom and solar energy industry.
Written by Shivani Singh
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