At a Glance
Bondada Engineering is the silent beast in India’s EPC (Engineering, Procurement & Construction) jungle. From boring telecom towers to ₹14,000 Cr worth of solar + battery contracts, this SME has gone full Bigg Boss on its competitors. But is it still a buy at 43x P/E or just another BOO-tstrapped bubble?
1. 🎬 Hook – India’s Next Infra Rockstar?
You’ve heard of L&T, right? Now meet its microcap doppelgänger with a solar tan.
Bondada Engineering started by erecting telecom towers, moved to solar EPC, and now they’re building battery energy storage systems (BESS) for Tamil Nadu and TGGENCO.
Also:
- ✅ ₹9,000 Cr solar order
- ✅ ₹836 Cr battery BOO order
- ✅ Microsoft data center ops contract
- ✅ ₹1,000+ Cr revenue milestone unlocked
🎯 It’s the kind of company that builds India’s energy backbone… while your favorite unicorn builds memes.
2. 🛠️ WTF Do They Even Do?
📡 Telecom Infrastructure:
- Tower installation, GI pole supply
- Airtel, BSNL, Dinesh Engineers are clients
🌞 Solar EPC:
- Utility-scale solar project execution
- 2000 MW order in Andhra alone
🔋 Battery Energy Storage:
- TGGENCO: ₹204 Cr order
- Tamil Nadu: ₹836 Cr under BOO model (they own + operate)
🏗️ AAC Blocks, MS Towers & WS Beam Exports
- Yes, they even have a Telangana AAC plant
- And shipped beams to the USA. America imports Bondada now.
3. 💰 Financials – Profits Going Parabolic
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 287 | 334 | 371 | 801 | 1,571 |
| Net Profit (₹ Cr) | 9 | 10 | 17 | 46 | 115 |
| OPM | 6% | 6% | 8% | 9% | 11% |
| ROE | 22.5% | 24.7% | 33.6% | 36.8% | 37% |
💥 3-Year Profit CAGR = 123%
📈 3-Year Sales CAGR = 68%
📊 Margins are still expanding — clear operating leverage play
4. 💸 Valuation — Overpriced or Underrated?
CMP = ₹437
EPS (FY25) = ₹10.17
P/E = 43x
Book Value = ₹40.6
P/B = 10.8x 😬
M.Cap = ₹4,809 Cr
Fair Value Range (EduCalc 🧠)
- Assuming forward EPS FY26 = ₹13–14
- Assigning multiple of 25x–30x (EPC avg)
- FV = ₹325 to ₹420
📉 Current CMP already pricing in hyper growth
📈 But earnings may justify it if ₹14K Cr order book executes well
5. 🍳 What’s Cooking – BOO Boom + Battery Blitz
Recent action that would make even Tata Power jealous:
- ⚡ ₹836 Cr BESS in Tamil Nadu — BOO model (they earn over time)
- 🔋 ₹204 Cr BESS order from TGGENCO
- 🌞 ₹9,000 Cr Solar EPC order in Andhra
- ☁️ ₹2.7 Cr Microsoft DC Ops contract
- 🪜 Bharti Airtel + Dinesh Engineers orders for poles & towers
- 🧱 AAC block plant commissioned
- 🌍 WS Beam exports to USA
- 🔋 Incorporated GreenBond RE Park Pvt Ltd for energy storage biz
In short: They’re building the future while you were watching stocks crash on FinTwit.
6. 🧾 Balance Sheet – Capital-Light, Not Brain-Light
| Metric | FY25 |
|---|---|
| Equity + Reserves | ₹447 Cr |
| Borrowings | ₹182 Cr |
| Total Assets | ₹1,194 Cr |
| Net Block | ₹96 Cr |
| Cash Flow from Ops | -₹167 Cr (working capital squeeze) |
⚠️ Cash flow is negative despite PAT doubling — sign of WC intensity
🔋 Capex and margin expansion signal aggressive growth
7. 💵 Cash Flow – Aggressive Expansion Mode
| Year | CFO | Capex | FCF |
|---|---|---|---|
| FY23 | -₹32 Cr | -₹12 Cr | -44 |
| FY24 | ₹54 Cr | -₹62 Cr | -8 |
| FY25 | -₹167 Cr | -₹121 Cr | -288 😬 |
📉 Negative FCF for 3 years
⚠️ Debt-funded growth — must monitor debt cycle as BESS ops begin
8. 📊 Ratios – Sexy on ROCE, Not on Cash
| Metric | FY25 |
|---|---|
| ROCE | 40.4% ✅ |
| ROE | 36.8% ✅ |
| OPM | 11% ✅ |
| Debtor Days | 125 😬 |
| Inventory Days | 94 |
| Payable Days | 108 |
| CCC | 110 🧯 |
🔥 Return ratios are mind-blowing
🧾 But CCC > 100 = cash getting locked — classic EPC headache
9. 📉 P&L Breakdown – Growth Engine Engaged
- Revenue = ₹287 Cr → ₹1,571 Cr in 4 years
- Net Profit = ₹9 Cr → ₹115 Cr
- OPM moved from 6% → 11%
- EPS = ₹10.17
⚠️ But EPS growth is being offset by valuation compression — stock down 22% YoY despite performance
10. 🆚 Peer Comparison – Who Else Building This Fast?
| Company | P/E | ROE | OPM | FY25 PAT |
|---|---|---|---|---|
| Indus Towers | 11.5x | 33.4% | 69.2% | ₹9,931 Cr |
| HFCL | 70.4x | 4.3% | 11.0% | ₹173 Cr |
| Sar Tele | 25.9x | 10.1% | 15.8% | ₹46.9 Cr |
| Vindhya Tele | 10x | 5.0% | 6.4% | ₹202.8 Cr |
| Bondada | 43x | 36.8% | 11.1% | ₹111.9 Cr |
Bondada has elite ROE, even vs big names
📉 But its P/E is at the top end — not cheap anymore
11. 🧩 Miscellaneous – Shareholding & Sanity
- Promoter Holding: 63.34% (stable)
- FII Holding: 1.28% (steadily rising)
- Public Holding: ~35%
- No pledging
- 📈 Shareholders jumped from 1,700 to 9,000 in 6 quarters 🚨
👀 FII interest is growing
💡 But rising retail = risk of volatility + expectation mismatch
12. 🚧 Risks – The Red Flags Beneath Green Energy
- 💸 Valuation premium may compress if execution slows
- 🧯 High CCC = Cash stuck in receivables
- 🏦 Capex surge = Debt + WC strain
- 🛑 Order book sounds massive, but EPC collections are always staggered
- 🤷 BOO model = delayed monetization, needs financial finesse
13. 🧑⚖️ EduInvesting Verdict™
Bondada Engineering is building India’s next-gen infra — and doing it profitably.
- 📦 Solar, storage, exports = major growth verticals
- 💥 Profit compounding + margin expansion = textbook bull thesis
- 📊 But the stock is not cheap anymore
- ⚠️ Cash flow gaps + WC stress = red flags for conservative investors
Final Word: Bondada is the desi EPC beast your fund manager probably missed — but that doesn’t mean you overpay for it at 43x P/E. Ride the infra wave, but don’t get washed away by working capital whirlpools.
✍️ Written by Prashant | 📅 July 6, 2025
Tags: Bondada Engineering, Solar EPC, Battery Energy Storage, Infra Stocks India, Smallcap Infra, BOO Model, Energy Transition India, EduInvesting, Telangana Infra Stocks
