Bajaj Group's engineering, procurement and construction (EPC) company Bajel Projects Ltd is prioritizing steady growth over rapid expansion in India's renewable energy boom, according to reports from The Economic Times. CEO and managing director Rajesh Ganesh emphasizes building a sustainable organization rather than pursuing aggressive order book growth. "A wild elephant dancing is of no use to anybody," Ganesh stated, referencing former IBM chief Louis Gerstner Jr.'s memoir on organizational discipline. The company is focusing on fixing internal processes and developing a framework for selecting projects, with Ganesh noting that "it's not that difficult to build a big orderbook in this business, the challenge is in executing the order."
As reported by The Economic Times, Bajel Projects maintains an EPC orderbook of ₹4,055 crore as of June 30, representing an all-time high but not significantly different from the ₹3,598 crore recorded at the end of FY24. The company's Ebitda margin of 3.3% in Q1FY27 lags behind industry peers like Transrail Lighting Ltd (5.8-11.7% margins), KEC International Ltd (₹40,000 crore orderbook), and Kalpataru Projects International Ltd (₹66,607 crore orderbook). The company is investing ₹170 crore to increase manufacturing capacity for transmission towers at Ranjangaon from 56,500 tonnes per year to 110,000 tonnes by the next fiscal year. Ganesh noted that "the larger peers enjoy better economies of scale," highlighting the company's relatively smaller scale challenges.
According to reports from The Economic Times, Bajel Projects is diversifying into the Middle East and North Africa (MENA) region to improve margins through overseas business. The company is recruiting 100 graduate engineers as trainees this year, marking the first time it has hired freshers since becoming an independent company. Ganesh noted that employee churn due to talent poaching has delayed the company's work on developing robust business processes amid rapid industry expansion. "Overseas businesses bring richer margins," Ganesh said, explaining the strategic shift toward international markets.
As reported by The Economic Times, Bajel Projects shares have appreciated 25% over the last six months following the company's high-quality order book of ₹4,000 crore. However, the stock is up only 10% since its listing in December 2023 and remains significantly below its ₹320 high touched in 2024. The stock ended 0.5% lower at ₹184.85 on Friday, giving the company a market capitalization of just over ₹2,100 crore. Analysts at Antique Stock Broking have given the stock a buy rating with a target price of ₹280, citing favorable power transmission and distribution capex tailwinds and the company's focus on execution discipline. "Backed by favorable power T&D capex tailwinds, sustained anticipated growth in order inflows and backlog, and revamped management focus on execution discipline and cost control initiatives, Bajel is on the cusp of a healthy growth trajectory," the analysts wrote in an 11 August note.
