Target: ₹198
CMP: ₹179.45
Bajel Projects Ltd is a Bajaj Group power T&D EPC company, demerged from Bajaj Electricals and listed in December 2023. With 20+ years of experience, it executes high-voltage transmission lines (132 kV–765 kV), AIS/GIS substations, and distribution infrastructure. Its Ranjangaon manufacturing unit (55 km from Pune) produces lattice towers, monopoles, and high masts with a proposed capacity of 1,10,000 MTPA, serving domestic and export markets across 7+ countries.
The company’s growth is anchored by its technical prowess in high-voltage segments, including 765 kV transmission lines and advanced GIS substations. With a robust unexecuted order book of ₹2,912 Cr and an “L1” position in multiple upcoming tenders, Bajel is shifting its focus toward “Quality of Earnings” by prioritising high-margin, complex projects over sheer volume.
The transmission and distribution (T&D) sector has seen a structural pivot toward high-voltage infrastructure despite historical drags from legacy distribution projects. Looking ahead, we anticipate a significant PAT inflection in FY27E and FY28E due to the de-emphasis of low-margin volume, while the 400 kV and 765 kV segments are expected to drive premium realisations. We forecast an EBITDA CAGR of 67 per cent for FY25-28E, supported by a ₹2,912 crore order book, qualification moats in niche power segments, and backward integration at the Ranjangaon facility.
We recommend a Buy with a Target price of ₹198.
Key risks: Slowdown in PGCIL/State Transco; delays of legacy distribution projects; and execution risk