Published by: Gujju Traders | May 2025
🏗️ Introduction
India’s march towards renewable energy leadership has given rise to several ambitious infrastructure firms—but few have made a mark as rapidly and decisively as Bondada Engineering Ltd. Headquartered in Hyderabad and founded just over a decade ago, Bondada Engineering has now captured headlines by securing a ₹9,000 crore solar project from the Government of Andhra Pradesh. This landmark deal marks not only a massive revenue infusion but a validation of Bondada’s capabilities on a national stage.
In this comprehensive brand research report, Gujju Traders examines Bondada Engineering’s origins, business segments, order pipeline, financial health, and how this mega solar EPC project might reshape its future and elevate its position in the Indian stock market.
📜 Company Overview
Incorporated: 2012
Headquarters: Hyderabad, Telangana
Promoter: Mr. Suresh Bondada (CMD)
Listed: NSE SME Exchange
Core Segments:
- Solar EPC
- Telecom Infrastructure
- Civil & Electrical Works
- Smart Infrastructure Projects
Bondada Engineering Limited (BEL) started with telecom infrastructure rollouts for private telcos and gradually expanded to renewable energy and civil EPC. Today, the company serves clients like Reliance Jio, Airtel, NTPC, RailTel, and various state governments. Its approach of vertical integration and in-house manufacturing of telecom towers and solar mounting structures has made it cost-efficient and execution-focused.
⚡ ₹9,000 Crore Solar Order: The Game Changer
Project Details:
- Client: Government of Andhra Pradesh
- Location: Ananthapuramu and Sri Sathya Sai districts
- Capacity: 2,600 MWp (2,000 MW AC)
- Order Value: ₹9,000 crore
- Execution Timeline: 24–30 months
- Scope: Complete EPC including land acquisition, engineering design, procurement, construction, grid connectivity, and O&M for 10 years.
This contract is the largest single project win in Bondada’s history and more than 4x its FY24 revenues, propelling the company into the league of India’s largest solar EPC players.
📈 Financial Snapshot (Pre-Order)
| Metric | FY22 | FY23 | FY24 (Est) |
|---|---|---|---|
| Revenue | ₹295 Cr | ₹498 Cr | ₹675 Cr |
| EBITDA | ₹47 Cr | ₹79 Cr | ₹118 Cr |
| PAT | ₹21 Cr | ₹39 Cr | ₹58 Cr |
| ROE | 13.8% | 16.5% | 19.2% |
| Debt/Equity | 0.41x | 0.33x | 0.3x |
Bondada has shown consistent topline and bottom-line growth while maintaining a conservative debt profile. This has created a solid foundation for scaling up to larger projects.
🔍 Revised Forecasts (Post-Order)
With the new ₹9,000 crore project, the company’s revenue and earnings trajectory have changed significantly.
| FY | Revenue Projection | PAT Projection | EPS Estimate |
|---|---|---|---|
| FY25 | ₹2,300–2,500 Cr | ₹160–180 Cr | ₹45–50 |
| FY26 | ₹2,800–3,100 Cr | ₹200–220 Cr | ₹60–65 |
These estimates assume 85–90% execution of the order by FY26 and modest growth in legacy telecom and infra businesses.
🏭 Order Book Strength
Before the solar deal, Bondada’s order book stood at ₹2,100 crore (FY24-end). The ₹9,000 crore order now elevates its total executable backlog to ₹14,000 crore, giving it 3–4 years of revenue visibility. This ensures predictable cash flows, stronger quarterly performance, and scalability in operations.
🧩 Business Segmentation
Bondada Engineering operates in four verticals:
1. Solar EPC
Rapidly growing with this new mega project. Services include design, civil work, solar panel installation, BoS procurement, and maintenance. This is expected to form 65–70% of revenue in FY25.
2. Telecom Infrastructure
Still an important revenue stream. The company builds telecom towers and supplies hybrid power solutions for networks in rural and semi-urban India.
3. Civil & Electrical EPC
Involves industrial buildings, sub-stations, water pipeline works, and smart grid installations.
4. Manufacturing
Owns facilities to produce mounting structures, telecom towers, and galvanized products. Vertical integration ensures cost control and timely execution.
🌍 Industry Tailwinds
- India’s 2030 goal: 500 GW of non-fossil energy capacity
- PLI Schemes for solar manufacturing
- Renewable Energy Parks being developed across states
- Digital India push leading to rural telecom infrastructure growth
- Private sector partnerships in power, grid, and infra projects
Bondada is well-positioned to benefit from these macro themes.
📊 Stock Performance
Current Price (May 2025): ₹425
Market Cap: ~₹1,600 crore
52-Week Low/High: ₹180 / ₹425
The stock has surged over 80% in the last 6 months, largely on the back of order wins, strong Q3 and Q4 results, and speculation around migration to the NSE mainboard.
📉 Peer Comparison
| Company | P/E (Fwd) | ROE | Market Cap | Order Book |
|---|---|---|---|---|
| Bondada | 8.5x | 19.2% | ₹1,600 Cr | ₹14,000 Cr |
| Sterling & Wilson | 41.5x | 12.3% | ₹7,400 Cr | ₹18,000 Cr |
| Tata Power Solar | 34.2x | 11.9% | ₹1.7 L Cr (consolidated) | ₹21,000 Cr |
Bondada is undervalued despite showing stronger growth potential and balance sheet discipline.
📈 Technical View
Bondada Engineering’s stock shows a bullish breakout on daily and weekly charts:
- Key Support: ₹390
- Immediate Resistance: ₹450
- RSI: 68 (Bullish)
- MACD: Crossover confirmed
- 12-Month Target: ₹600
- 3-Year Target: ₹1,200–1,250
Volumes have tripled post order news, confirming investor interest and institutional tracking.
👔 Management & Vision
CMD: Mr. Suresh Bondada
A technocrat and first-generation entrepreneur with deep execution experience. Under his leadership:
- The company has grown 20x in revenue over 6 years.
- Plans are underway to expand manufacturing capacity.
- Focus on debt-free growth with a transparent project pipeline.
Bondada’s next goals include:
- NSE mainboard listing
- Overseas project bidding
- Strategic partnerships with global solar players
📢 Investor Sentiment
- FII/DII interest increasing
- Mutual fund inclusion likely post mainboard listing
- Valuation gap vs peers could trigger re-rating
- Already featured in top SME picks by leading brokerages
⚠️ Key Risks
- Execution Challenges: Timely delivery of ₹9,000 crore project is critical.
- Working Capital Needs: Scaling projects requires efficient cash flow management.
- Input Cost Volatility: Steel, panels, and other EPC components may face price pressure.
- Regulatory Delays: Government approvals or policy changes could slow timelines.
However, Bondada has historically shown project discipline and smart procurement strategies to mitigate these.
✅ Gujju Traders’ Conclusion & Stock Outlook
Bondada Engineering is no longer just a small-cap EPC company. It is now a key player in India’s solar infrastructure story with a huge growth runway.
With:
- A ₹9,000 Cr EPC deal
- ₹14,000 Cr executable backlog
- Consistent profitability
- Low debt and strong ROE
…it is a strong buy candidate for long-term investors looking for infrastructure exposure with clean energy credentials.
🔔 Gujju Traders’ Recommendation:
💡 Buy on Dips
📈 Target 12 Months: ₹600
🚀 Target 3 Years: ₹1,250+
🕰️ Horizon: 2–3 Years
🏆 Risk Level: Moderate
💰 Conviction: High
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