Bajel Projects shares soar 13% on ₹700 crore EPC contract win from MSETCL

Shares of Bajel Projects Ltd. rose over 13 per cent on Monday after it received an EPC contract worth over ₹700 crore from Maharashtra State Electricity Transmission Co. (MSETCL). 

 

The company's stock rose as much as 12.8 per cent during the day to ₹158 per share, the biggest intraday gain in at least a year. Bajel Projects stock pared gains to trade 9.6 per cent higher at ₹153.3 apiece, compared to a 0.07 per cent decline in Nifty 50 as of 09:27 AM. 

 

Shares of the company snapped a two-day losing streak and currently trade at 13 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 11.7 per cent this year, compared to a 11.4 per cent advance in the benchmark Nifty 50. Bajel Projects has a total market capitalisation of ₹1,765.37 crore.  READ LATEST STOCK MARKET UPDATES TODAY LIVE

 

What's driving Bajel Projects shares higher?

Bajel Projects said it has received an engineering, procurement and construction order for power transmission infrastructure from Maharashtra State Electricity Transmission Company Ltd. (MSETCL), with the order to be placed on behalf of its special purpose vehicle Saswad Transmission Ltd.

 

The contract involves the establishment of a 400/220 kilovolt air insulated switchgear (AIS) substation at Saswad in Pune district along with associated transmission lines, it said in an exchange filing. The project will be executed on a turnkey basis and includes design, supply, erection, testing and commissioning of the substation as well as related transmission line infrastructure, covering civil works, equipment supply and erection, testing and commissioning.

 

The project is expected to be completed within 23 months from the date of issuance of the notification of award.

 

"This order reinforces our RAASTA 2030 strategy of expanding into high-value, high-complexity projects and deepens our partnership with one of India’s most important state transmission utilities. Our team is fully committed to delivering this project with the highest standards of quality and safety," said Rajesh Ganesh, managing director and chief executive officer of Bajel Projects.  READ | IDBI Bank shares tumble 14% on reports of stake sale cancellation

Bajel Projects outlook

Earlier this year, Antique Stock Broking said it expects the company's topline to clock a compound annual growth rate (CAGR) of 22 per cent over FY25 to FY28E. A strong 350 basis points expansion in earnings before interest, tax, depreciation, and amortisation (Ebitda) margins is likely to translate into a 124 per cent CAGR in profitability over the same period.

 

According to the brokerage, the demerger of Bajaj Electricals’ power EPC business into Bajel Projects has resulted in a focused, pure-play power transmission and distribution EPC platform with a clear strategic intent. As a standalone listed entity, Bajel Projects benefits from sharper management focus, independent access to capital, and dedicated resource allocation to its core power infrastructure business.

 

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