1:5 Stock Split: September 2 Record Date; Buy To Sub-Division of Equity Shares?

A multifaceted participant in the infrastructure market is Bondada Engineering. The company was founded in 2012 and has been offering the infrastructure sector full services for more than 12 years. Bondada Engineering's shares opened at Rs 3247.90 on the BSE and went on to record a new 52-week high of Rs 3,340 on Wednesday. The company set a record date for the stock split, and the shares closed the day 1.95% higher at Rs 3311.30.

Bondada Engineering Stock Split

"Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI LODR Regulations"), this is to inform you that the 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, such that 1 (one) equity share having face value of Rs. 10/- (Rupees Ten only) each, fully paid up, will be sub-divided into 5 (Five) equity shares having the face value of Rs. 2/- (Rupees Two only) each, fully paid up, ranking pari-passu in all respects," said Bondada Engineering in a stock exchange filing.

Bondada Engineering Financial Position

"Bondada Engineering Ltd, a dynamic player in the Telecom and Solar EPC sectors, embarked on a remarkable growth journey from 2012 to 2024. In 2012, the company reported a modest revenue of 7 crores. This marked the beginning of an era characterized by strategic expansion, innovative project execution, and relentless pursuit of excellence. By 2024, Bondada Engineering Ltd's revenue had surged to an impressive 801 crores," said the company in a statement.

"This phenomenal rise can be attributed to the company's commitment to innovation, quality, and customer satisfaction. Their robust project management, skilled workforce, and strategic alliances played pivotal roles in achieving this milestone. From a 7-crore revenue in 2012 to an 801-crore revenue in 2024, Bondada Engineering Ltd's journey exemplifies the power of strategic vision, adaptability, and execution in the ever-evolving telecom and solar EPC industries, Bondada Engineering further added.

Bondada Engineering Share Price Target

"Bondada Engineering Limited's ROE, revenue growth, and debt reduction make it a lucrative buying option for many. However, as per my analysis, market participants can explore these stocks but ensure moderate exposure. The company's stock has a PE of 151.11, which is higher than the sector PE of 23.51, suggesting overvaluation. While the stock has offered an ROE of 27.55% in the last 52 weeks it has witnessed high volatility, as seen from the price fluctuation between the range of Rs. 142-3250. Those interested may consider buying with moderate exposure in the Rs. 3200-3250 range. They may set a target price of Rs. 3700-5000 for this stock and hold it for a period of 3-6 months. However, I encourage them to set their stop loss at Rs. 2700 to limit risks," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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