Up 6x in 6 months: This telecom infra stock to watch on Tuesday as company gets order from Bharti Airtel

Telecom infrastructure company Bondada Engineering Ltd (BEL) received an order worth Rs 2.05 crore from Bharti Airtel, the second largest telecom company in India, according to a stock market disclosure.

Bondada Engineering Order Details

According to the information available on the stock market exchange BSE, Bondada Engineering has received a work order worth Rs 2.05 crore from the country's second telecom company Bharati Airtel Limited. This order is for the supply of six-meter height GI pole weighing 60 kg (hot dipped galvanised) without a base to Tamil Nadu. The work order is worth Rs 2,05,32,000 including GST.

Earlier, on June 12, the engineering, procurement, and construction (EPC) services firm BEL received a letter of award (LoA) for a large order from NCL India. This work order is for the balance of system work for setting up the 600 MW Grid Connected Solar Power Project at Khakra, Gujarat.

After getting an order from NCL, the company's shares surged to a 52-week high of Rs 2,320.80 in early trade on June 13.

Bondada Engineering business profile

BEL is a diverse player in the infrastructure sector that focuses on project execution excellence. The company is headquartered in Hyderabad and specialises in core services to operations and maintenance services in the infrastructure space.

BEL Q4FY24 earnings

Bondada Engineering's profit after tax (PAT) more than doubled to Rs 31.44 crore in the fourth quarter of fiscal year 2023-24 (Q4FY24), up from Rs 14.87 crore in the previous year. Concurrently, income from operations increased by 70.8 per cent year on year, reaching Rs 505 crore.

BEL recorded a PAT of Rs 46.31 crore for the fiscal year 2023-24 (FY24), up from Rs 17.13 crore in FY23. Furthermore, revenue from operations more than quadrupled, rising to Rs 801 crore from Rs 371 crore in the previous fiscal year.

Expert's view on Bondada Engineering

Sugandha Sachdeva, founder of SS WealthStreet says Bondada Engineering has shown commendable performance in recent quarters, establishing itself as a significant player in the infrastructure sector. The company's strong fundamentals, robust project pipeline, and strategic partnerships position it well for future growth.

"The shares of Bondada Engineering have experienced a remarkable increase, supported by positive market sentiment and robust fundamentals. The stock has surged by more than 500 percent year-to-date and continues to show promise. The company has reported strong financial results for FY24 and appears well-positioned for further growth, driven by the government's ambitious infrastructure development plans, technological advancements, and a strong order book. A healthy order book with multiple high-value projects ensures revenue visibility in the medium term. The company's ability to secure and execute large contracts will be crucial to its continued success," she added.

According to Sachdeva, as per the price pattern, the stock witnessed some consolidation last month in a narrow band but has recently experienced a fresh breakout above the Rs. 2000 mark, scaling to new highs of Rs. 2436.80. While the stock appears overbought, a new base is being witnessed at the Rs. 2000 level on daily charts, providing a cushion for the stock.

Investment Strategy

Buy on Dips: Investors can consider buying the stock on dips, with the Rs 2000 mark acting as a strong support level.

Target Levels: The stock is poised to reach higher targets of around Rs 2850 and then Rs 3050 from a near-term perspective.

Risk Management: Investors should however exercise some caution, as any breach of the Rs 2000 mark on a closing basis could invite selling pressure, with the next support seen at the Rs 1620 level.

Medium to Long-Term Perspective: Investors with a medium to long-term perspective may find Bondada Engineering a promising addition to their portfolio, capitalizing on the anticipated growth in the infrastructure sector. The company's strong performance, strategic initiatives, and favorable market conditions provide a solid foundation for sustained growth.

Bondada Engineering stock performance

The stock has given good returns in the last one year. The stock gained over 1,500 per cent in a year. The stock has shown a rise of 500 per cent in the last six months. The return in three months was 225 per cent. The stock has given returns of about 30 per cent in the last month. The 52-week high of the stock on BSE is 2,436.80 and the low is 142.50. The market cap of the company is more than Rs 7,49,845 crore.

Shares of Bondada Engineering closed at Rs 2,436.8 each, up 5 per cent on Friday, June 14 on BSE.

The views/suggestions/advices expressed here in this article are solely by brokerage firm. Zee Business suggests its readers consult their investment advisers before making any financial decision.