This multibagger EPC Stock turned 3 Lakh into 50 Lakh giving 1700% Return in one Year: Owing to huge order book

At the heart of Bondada Engineering's success is its massive order book. The company operates in the EPC sector, catering to infrastructure development, renewable energy, and telecommunications. Over the past year, Bondada has secured several high-value contracts, including projects in:

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• Renewable Energy Infrastructure: Bondada has secured contracts for constructing solar and wind power facilities, leveraging the global shift towards clean energy.
• Telecommunication Tower Installation: With the rise of 5G and rural connectivity initiatives, the company has been a preferred partner for building telecom infrastructure.
• Industrial Projects: Bondada’s expertise in executing large-scale projects from manufacturing facilities to logistics hubs, from manufacturing facilities to logistics hubs, has been highly demanded.

Financial Performance: Stellar Growth 

Bondada Engineering's financials have shown remarkable growth despite the challenges posed by inflation and supply chain disruptions. Key highlights include:

• Revenue Surge: The company's revenue has increased significantly, reflecting the timely execution of its robust order book.
• Profit Margins: Effective cost management and operational efficiency have enabled Bondada to maintain strong margins.
• Debt Control: While scaling up operations, the company kept its debt under check, ensuring financial stability.

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These factors have resulted in investor confidence, leading to a sharp rise in its stock price.Investors who believed in Bondada Engineering a year ago have reaped phenomenal rewards. The stock price's rapid appreciation reflects not just market speculation but a response to the company's solid fundamentals and future growth prospects. An initial investment of ₹3 lakh has grown to ₹50 lakh, making Bondada a standout performer in the EPC sector.

Key Growth Triggers:

1. The company has a closing Order book at 5342 Cr, to be executed in 18-24 months, and expects to double its revenue and profit in FY25. Apart from telecom and renewable energy, the company plans to enter Railways.

2. Management has guided revenue of INR 4,000 Cr in revenue by FY27, which is 5x growth over 3 years. It expects a PAT of INR 330-340 Cr and aims to achieve an order book of at least INR 6,000 Cr by March 31, 2025.

3. The company has 2 GW projects in hand, an Ambitious target of 10+ GW by 2030, and 600+MW commissioned to date. It aims to become one of the "Top Five EPC Companies in India" by 2030.

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4. A board meeting is scheduled for October 22, 2024, to consider raising an aggregate amount of INR 500 Cr.

5. Company fixed assets increased from INR 41 Cr in March 2024 to 51 Cr in September 2024, a 24% increase. Clients include Bharti Airtel, BSNL, and Reliance Jio.

Recent Performance and Developments

November 1, 2024:
Bondada delivered excellent results for the half-year ending September 2024. Sales surged 63% year-on-year, climbing from ₹296 crore in September 2023 to ₹481 crore in September 2024. Net profit more than doubled, rising 2.4x from ₹15 crore to ₹36 crore. Sales dipped slightly by five on a half-on-ha,lf basis, but net profit still grew by 16%, showcasing operational efficiency.

October 17, 2024:
The company's board has scheduled a meeting on October 22, 2024, to discuss a fundraising of ₹500 crore, which is expected to support its ambitious growth plans.

October 1,4, 2024:
Bondada received a significant ₹390 crore Letter of Award from Maharashtra State Power Generation Company Limited (MAHAGENCO). This project involved designing, engineering, and commissioning of a grid-interactive solar PV power plant with dry cleaning technology and a five-year operations and maintenance contract.

October 11, 2024:
The company secured another major win from MAHAGENCO, worth ₹1,132 crore under the MSKVY 2.0 scheme. The award covers two EPC contracts: ₹763 crore for a ground-mounted solar PV power plant and ₹369 crore for solarization of agricultural feeders. Both projects include a 3-year O&M period and are expected to be completed within 9-12 months.

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Future Prospects: More Growth Ahead?

Bondada Engineering is not resting on its laurels. While the company has made a name for itself in telecom and renewable energy, it plans to enter the railway sector. In renewable energy, Bondada is also diversifying in renewable energy into Battery Energy Storage Systems (BESS) and Green Hydrogen, in addition to its established solar and wind projects. The company currently has 2 GW of renewable energy projects under its belt and has set an ambitious goal of achieving over 10 GW by 2030. To date, Bondada has commissioned more than 600 MW of capacity. 

Bondada is actively participating in tenders worth ₹5,975 crore, with an additional ₹2,437 crore in tender submissions underway. These could potentially translate into significant new business wins. Bondada actively pursues new contracts, especially in emerging sectors like green hydrogen infrastructure and smart cities. Focusing on innovation and sustainability, it aims to solidify its market position further. 

However, investors should remain mindful of potential risks, including the cyclical nature of the EPC industry and the possibility of execution delays. With its proven track record and strategic growth plans, Bondada is well-poised for continued success. Given its current trajectory, Bondada aims to rank among India's top five EPC companies in India by 2030, a bold yet achievable target given its current trajectory.

Conclusion: A Transformational Journey

Bondada Engineering’s transformation from a mid-tier EPC firm to a stock market darling is a testament to its operational excellence and strategic foresight. Its ability to deliver unparalleled returns while securing a strong foothold in high-growth sectors makes it a compelling story for both current and prospective investors.

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