Why Bajel Projects soared 12% in falling market on Dec 13; reasons here

Shares of smallcap firm Bajel Projects surged up to 12 per cent at Rs 274.55 a piece on the BSE in Friday’s early morning deals. On the contrary, the BSE SmallCap index slipped down 1.85 per cent at 56,066.45 level intraday.   The stock of the company was in high demand in an otherwise weak market after it was awarded a supply of goods and services contract by Solapur Transmission, a project special purpose vehicle (SPV) company of Torrent Power. 

 

“The scope of work of the project includes design, engineering, manufacturing, supply, erection, civil work, testing and commissioning work for establishment of 400/220 KV Solapur PS (New) and establishment of 400 KV Line Bays‐ 2 nos. (Power Grid Solapur), Solapur, Maharashtra,” the company said in an exchange filing on Thursday. 

 

The project will be completed in 15 months from the date of issuance of letter of award, the company said.  

 

In the recently concluded second quarter results of the financial year 2024-25 (Q2FY25), Bajel Projects reported a profit after tax of Rs 3.66 crore for the September 2024 quarter, reversing a loss of Rs 4.44 crore in the same quarter of the previous fiscal year (July-September 2023-24). 

 

The company's revenue from operations surged to Rs 662.41 crore, compared to Rs 199.96 crore in the second quarter of the last fiscal year.

 

On the equities front, Bajel Projects stock has outperformed the market year to date as it has risen 104 per cent compared with BSE Sensex’s rise of 12 per cent.

 

The company has a total market capitalization of Rs 3,158.16 crore. Its shares are trading at a price to earnings multiple of 144.32 times and at an earning per share of Rs 1.70. 

 

At 12:01 PM; the shares of the company were trading 11.5 per cent lower at Rs 273.35 a piece. By comparison, the BSE Sensex was trading flat at 81,278 level. 

 

Bajel Projects Limited (BPL) is an engineering, procurement, and construction (EPC) company specializing in power transmission and distribution. The company provides end-to-end solutions for power infrastructure projects, including design, engineering, procurement, construction, and commissioning of power transmission and distribution systems.