The shares of this microcap company locked a 5 percent upper circuit after receiving an order from Reliance Industries worth over Rs. 1.31 crores. On a YTD basis, the stock has delivered more than a 100 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 924 crores, the shares of RBM Infracon Ltd started Wednesday’s trading session on a lower note at Rs. 890.70 compared to its previous close of Rs. 897.75. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 942.60 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had secured a contract from Reliance Industries for underground piping fabrication and installation, along with associated civil work for Train-1 (5 GW) at the PV Manufacturing Complex in Reliance Jamnagar, valued at over Rs. 1.31 crores.
Additionally, the company also received one more order from Kalpataru Projects International Ltd for cased crossing work worth Rs. 95.58 crores.
Financials:
Looking at the company’s financial performance, the revenue decreased by 32 percent from Rs. 57.29 crores during the March quarter to Rs. 38.85 crores in the June quarter. On the other hand, the net profits declined by around 19 percent from Rs. 4.08 crores to Rs. 3.29 crores during the same period.
Order Book:
As per the latest data, RBM Infracon’s total order book has reached over Rs. 4,884 crores, representing 5.28 times its market capitalization. This impressive growth is driven by a massive new order worth Rs. 3,498 crores received from Oil and Natural Gas Corporation Limited (ONGC).
Future Outlook:
RBM Infracon aims to achieve Rs. 1,000 crore in revenue by the next financial year, with aspirations to reach Rs. 5,000 crore in the next five years.
Moreover, RBM Infracon is positioned to benefit from India’s growing infrastructure sector, backed by favourable government policies and increased investment in infrastructure development.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 11.41 percent and a return on capital employed (RoCE) of 18.20 percent for the period spanning FY23-24. Moreover, during the same timeframe, the net profit margin stood at 8.55 percent.
Company Profile:
Incorporated in 2013, RBM Infracon Limited is primarily engaged in the engineering, execution, testing, commissioning, operating and maintenance of mechanical and rotary equipment for oil & gas refineries, cement, fertilizers, Petrochemicals, Coal/Gas based power plants, etc.
Written By Vaibhav Patil
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