Bondada Engineering Limited

Industrials — Engineering & Construction · BSE

₹301.40−₹6.95 (−2.25%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Bondada Engineering Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bondada Engineering Limited provides engineering, procurement, construction, and operations and maintenance services for telecom and solar sectors in India.

IndustryEngineering & Construction

SectorIndustrials

Employees411

Annual revenue₹2,839 Cr

How does it make money?

Turns over ₹2,839 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 411 employees supports ₹6.91 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.91 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 42.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 34.9% against a peer median of 14.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +667% while net margin moved +58% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+667%

Margin effect+58%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.73 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

15.5x

3Y Median

96.2x

40 monthly readings · mean 247.3x · range 15.1x–1860.3x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 84% below its 3y median of 96.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 48% below the peer median of 30.1x.

vs. its own history

Cheap

96.2x median over 40 months · -84%

vs. sector peers

Cheap

30.1x median of 3 peers · -48%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.4x

PEG

0.12

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 8.0% to 11.8% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 21.4% to 29.3%.
Return on capital is rising
ROCE has improved from 31.8% to 42.5%.
High return on capital employed
ROCE of 42.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 247% over 3 years, from ₹84 Cr to ₹292 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 800% against revenue up 667% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 42.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 8.0% to 11.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 84% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 48% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹84 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 73% a year✓ 97.2% CAGR
Latest reported year was 27.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹84 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 40%✓ 42.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹3,366 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.5x

Fair

Fairly valued against the generic band

P/B Ratio

4.85x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹19.39

Profitable

Profitable on a per-share basis

ROE

34.9%

Strong

Strong capital efficiency

ROCE

42.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.40x

Low

Conservative leverage

Revenue Growth (YoY)

27.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

18.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.09%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

12.3%

Good

Assets are working hard

Operating Margin

10.7%

Average

Average margins

Net Margin

7.2%

Average

Average bottom-line conversion

Current Ratio

1.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.73

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

283.0 / 283.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

64.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹370 Cr	₹800 Cr	₹1,569 Cr	₹2,839 Cr	+97.2%
EBITDA	₹30 Cr	₹70 Cr	₹181 Cr	₹336 Cr	+124.4%
EBITDA Margin	8.0%	8.7%	11.5%	11.8%	—
PAT (Net Profit)	₹17 Cr	₹45 Cr	₹110 Cr	₹203 Cr	+129.9%
EPS	₹1.55	₹4.63	₹10.06	₹18.25	+127.5%
ROE	21.4%	27.8%	24.6%	29.3%	—
ROCE	31.8%	36.4%	34.5%	42.5%	—
Total Debt	₹84 Cr	₹80 Cr	₹192 Cr	₹292 Cr	+51.4%
Free Cash Flow	-₹36 Cr	₹26 Cr	-₹184 Cr	₹84 Cr	—

🟢 Revenue has grown at 97.2% a year over 3 years.

🟢 EBITDA has grown at 124.4% a year over 3 years.

🟢 EBITDA Margin has risen from 8.0% to 11.8% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 129.9% a year over 3 years.

🟢 EPS has grown at 127.5% a year over 3 years.

🟢 ROE has risen from 21.4% to 29.3% over 3 years (+8.0 pts).

🟢 ROCE has risen from 31.8% to 42.5% over 3 years (+10.8 pts).

🔴 Total Debt has grown at 51.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹36 Cr to ₹84 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,042 Cr

Total Liabilities

₹1,309 Cr

Cash & Equivalents

₹167 Cr

Operating Cash Flow

₹125 Cr

Capex

-₹41 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.5%

Corporate Actions

Dividend Rate

₹0.28

Ex-Dividend Date

14 Aug 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

2 positive4 general

Bondada Engineering Gets NSE Approval for Mainboard Migration

HDFC Sky, 15 Oct

Is Bondada Engineering the Best Stock in Its Sector? A Look at the Numbers

Univest, 15 Oct

Bondada Engineering receives NSE in-principle approval for main board migration

scanx.trade, 15 Oct

how Fair Value analysis predicted Bondada Engineering’s 57% decline By Investing.com

Investing.com India, 07 Mar

Bondada Engineering consolidated net profit rises 11.39% in the March 2026 quarter

Business Standard, 28 AprResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Bondada Engineering secures ₹945 Crore order; stock spurts ~5%

India Infoline, 22 DecOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality · Financial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑