Bajel Projects Sees 53% Upside as Antique Starts Coverage with 'Buy'

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AuthorKavya Nair|Published at:
Bajel Projects Sees 53% Upside as Antique Starts Coverage with 'Buy'
Overview

Antique Stock Broking launched coverage on Bajel Projects with a 'Buy' rating and a ₹270 target price, implying a 53% upside. The firm cited favorable power T&D capex, strong order inflows, and improved execution driving a projected 22% topline CAGR and 124% profit CAGR through FY28E, signaling a strong turnaround post-demerger.

Antique Initiates Coverage with Strong 'Buy' Call

Antique Stock Broking has initiated coverage on Bajel Projects, a key player in the power transmission and distribution (T&D) engineering, procurement, and construction (EPC) sector, with a 'Buy' recommendation. The brokerage firm set a target price of ₹270 per share, signaling a potential upside of approximately 53% from its current trading level.

Growth Projections Fueled by T&D Tailwinds

Analysts cited strong tailwinds from favorable T&D capex, consistent order inflows, and a revamped management focus on execution and cost control as key drivers for Bajel Projects' projected growth. The company is expected to achieve a 22% compound annual growth rate (CAGR) in revenue and a substantial 124% CAGR in profitability between FY25 and FY28E, supported by a projected 350 basis point expansion in Ebitda margins.

Demerger Creates Focused Power EPC Platform

Antique noted that the strategic demerger of Bajaj Electricals' power EPC business into Bajel Projects has successfully created a focused, pure-play T&D EPC platform. This standalone structure offers sharper management attention, independent capital access, and dedicated resources for its core business, enhancing execution discipline and market positioning.

Navigating Headwinds to Sustainable Recovery

The firm detailed Bajel Projects' turnaround story, moving from challenges like execution issues, scope changes, and commodity price volatility during FY20-FY24 to a sustainable recovery. This shift is attributed to a revised order mix favouring higher-margin private and overseas projects, cost-saving initiatives under "Project Neev," and improved financing optimization.

RAASTA 2030 Drives Next Growth Phase

Looking ahead, Bajel Projects' flagship program, "RAASTA 2030," outlines a path for transformational growth. Key initiatives include prioritizing high-voltage and complex projects, expanding into adjacent categories, pursuing overseas opportunities, and accelerating digital technology adoption. Antique values the stock at 18 times its FY28E earnings per share.

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