The shares of this micro-cap company hit 5 percent upper circuit after the company received a fresh work order of Rs 3,498 crore, which is higher than its market value.
RBM Infracon Ltd has a market capitalization of Rs 808.75 crore, the shares were trading at Rs 800.50 per share, increasing around 5 percent as compared to the previous closing price of Rs 762.40 apiece.
Reason of Rise:-
Today, the company shares have seen such a positive movement after RBM Infracon Ltd received a fresh work order of Rs 3,498 crore including Rs 3,371 crore for Crude and 127 crore for Gas at Nandej from Oil and Natural Gas Corporation Ltd. the time to execute the order is 15 years or 180 months from effective date.
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Moreover, the company received another order from Redi Port Ltd, Maharashtra for Repairs and maintenance at Redi Port, Taluka Vengurla, District Sindhudurg, Maharashtra. This order is valued at Rs 69.03 lakhs.
Financial performance:-
Looking into the company’s financial condition, RBM Infracon Ltd’s revenue zoomed by 99 percent from Rs 19.52 Crore in Q1FY24 to 38.85 Crore in Q1FY25. During the same time frame, net profits magnified drastically by 250 percent from Rs 0.94 crore to Rs 3.29 crore.
Order Book & client base:-
The company has a robust order book of more than Rs 1,384 crore. The company has completed 87 projects to date and RBM has 16 ongoing projects with more than 18 clients which include Reliance Industries, Malco Energy, Praj Industries, Dalmia Bharat Ltd, and Others.
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Ratio analysis:-
The company’s critical ratios show that the return on equity declined from 12.82 percent in FY22-23 to 11.41 percent in FY23-24, while the return on capital employed magnified from 20.21 percent to 18.20 percent. The net profit margin (NPM) for fiscal year 23-24 is 8.55 percent.
Company profile:-
RBM Infracon Limited provides construction, maintenance, and turnaround services to oil and gas refineries, petrochemicals, fertilizers, gas cracker plants, coal/gas/WHR-based power plants, chemicals, cement, fertilizers, sugar plants, paper plants, irrigation, and other related industries.
Written by:- Abhishek Singh
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