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Illustration: Binay Sinha
Bondada Engineering Company share price today was locked in the 5-per cent upper circuit at Rs 3,509, also its new high, on the BSE on Monday at 01:39 PM. Only buyers were seen on the counter with around 35,000 shares having changed hands and pending buy orders for 24,000 shares on the BSE, exchange data shows.
Thus far in the calendar year 2024, the stock of the telecom infrastructure company has rallied 783 per cent, as compared to 13 per cent rise in the BSE Sensex. With today’s rally, the stock price of the company has zoomed 4,579 per cent or nearly 47 times against its issue price of Rs 75 per share. Bondada Engineering made its stock market debut on August 30, 2023 under the SME segment.
Meanwhile, Bondada Engineering Company has fixed Monday, September 2, 2024, as the ‘Record Date’ for determining entitlement of equity shareholders for the purpose of subdivision/ split of existing equity shares of the company in the ratio of 1:5 i.e. existing 1 equity share of the company (having a face value of Rs 10 each) shall be subdivided/split into 5 equity shares (having a face value of Rs 2 each).
The rationale behind the stock split is to enhance the liquidity of the company’s equity shares and encourage the participation of investors by making it more affordable, the company said.
On August 13, Bondada had announced that it has received an add on work order worth of Rs 85.14 crore from Bharat Sanchar Nigam (BSNL) for providing infrastructure Service (IaaSP) for supply and erection of GBT, Infrastructure as a Service Provider (IaaSP) for supply installation of Infrastructure Item, and the subsequent operation & maintenance (O&M) for five years.
The group has long standing relationships with customers and suppliers. It has executed projects in more than 23 states for telecom, solar and OFC-related services. Its customers include well-established players in the telecom industry such as Reliance Jio, Airtel, Tata Communications, Bharti Infratel, Indus Towers, American Tower, and BSNL. Bondada has bagged repeat orders from these customers.
As on June 30, 2024, Bondada’s order book had orders worth more than Rs 2,500 crore, up from Rs 1,600 crore as on January 202. The growth was driven by the improvement in orders from the solar engineering, procurement and construction (EPC) segment.
Backed by healthy order flow and strong execution capabilities, the business risk profile is expected to further strengthen over the medium term, with revenue expected to cross Rs 1,300 crore in fiscal 2025 while the operating margin remains above 8.5 per cent. Order book position is also expected to cross Rs 3,500-4,000 crore, with several large ticket orders in the pipeline and bidding stage, according to analysts.
The group has managed to secure new orders on the solar segment from NLC India Ltd and Singarenni Colliers Company Ltd, which has improved the solar segment order book to Rs 1,344 crore in June 2024, from Rs 163 crore in January 2024.
Further, the management expects the scope of the ongoing BSNL 4G saturation project to be increased; new large ticket orders are in the pipeline/bidding stage, which will further drive the revenue to above Rs 1,200 crore in fiscal 2025.
“Order book will continue to be concentrated with the top 3 orders constituting more than 85 per cent of the total order book. However, the strong credit risk profiles of the counterparties mitigate concentration risks. Timely execution of the key orders and diversification of the order book will be monitorable,” CRISIL Ratings said in its rationale.
First Published: Aug 26 2024 | 2:36 PM IST
