Shares of Bajaj Electricals inched higher on March 6 after the company announced that it had secured an order worth Rs 564.87 crore from South Bihar Power Distribution Company.
At 11.17 am the stock was trading at Rs 1,24.65 apiece on the National Stock Exchange, 2 percent higher from the previous close. The stock ha also touched an intraday high of Rs 1,158.00.
Two lakh shares of the company exchanged hands on the exchanges, significantly higher than the one-month daily traded average of 81,000 shares.
This order entails the supply of plant and installation services for the development of distribution infrastructure of electric supply circle in Sasaram and Munger, with a completion timeline of 30 months.
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As of the end of the third quarter, Bajaj Electricals' engineering and procurement segment had an order book of approximately Rs 1,200 crore. Given this, ICICIdirect, a brokerage firm, believes that the current order will have a positive impact on the segment's revenue for Bajaj Electricals.
Additionally, ICICIdirect predicts that the revenue for the engineering and procurement segment will experience a compound annual growth rate of 8 percent over FY22- 25, thanks to the company's robust order book and higher government capital expenditure on infrastructure.
The order inflows will also support the company's revenue growth that has remained subdued in the past few quarters. Consequently, the stock price has also tanked over 26 percent from the record highs tested in September 2021.