Bajel Projects Secures Major Contract

On December 13, 2024, Bajel Projects Limited, part of the Bajaj Group, announced a significant order win from Solapur Transmission, a subsidiary of Torrent Power. The contract includes:

• Design, engineering, and manufacturing of a 400/220 KV substation.
• Supply, erection, civil works, testing, and commissioning of the project.
• Setup of two 400 KV line bays at Power Grid Solapur.

This critical project aims to bolster Maharashtra’s power infrastructure and is expected to be completed within 15 months of receiving the Letter of Award (LoA).

Market Reaction: Stock Soars 10%

Bajel Projects’ stock experienced a sharp rise of 10% in early trading on December 13, outperforming a generally weak market.

• Trading Volume Surge:
  • By 10:01 am, the stock traded at ₹266.55 on the NSE, with 17 lakh shares changing hands, far surpassing the one-month daily average of three lakh shares.
• BSE Smallcap Index Performance:
  • The stock emerged as a top performer on the BSE Smallcap index, reflecting strong buying momentum.

Q2 FY2024 Financial Performance: A Strong Turnaround

The company’s strong financial results for the September quarter (Q2 FY2024) further supported the bullish sentiment.

1. Profit Recovery:

   • Bajel Projects reported a net profit of ₹3.66 crore, a significant recovery from the ₹4.44 crore loss in the same quarter of the previous fiscal year.

2. Revenue Growth:

   • Revenue from operations surged to ₹662.41 crore, marking an impressive rise from ₹199.96 crore in Q2 FY2023.

Strategic Importance of the Solapur Project

The contract for the 400/220 KV substation holds immense strategic value for Bajel Projects:

1. Boost to Power Infrastructure:

   • The project aligns with India’s focus on improving power transmission networks to meet growing energy demands.
   • It also enhances Torrent Power’s capabilities in the Solapur region.

2. Strengthening Bajel’s Portfolio:

   • Bajel Projects specializes in power transmission and distribution, and this contract reaffirms its expertise in large-scale infrastructure projects.
   • The company’s ability to handle complex projects positions it as a leading player in the sector.

What’s Next for Bajel Projects?

With this contract, Bajel Projects is poised for further growth in the power sector. The strong financial turnaround, coupled with its strategic execution capabilities, enhances its position in the BSE Smallcap index and the broader market.

As infrastructure projects in India continue to expand, Bajel Projects is well-positioned to secure more contracts, driving shareholder value and long-term growth.