The shares of this smallcap company locked a 5 percent upper circuit after signing an MoU with Greenzo Energy India Limited to develop hydrogen generation facilities with a total investment of Rs. 200 crores.
Price Movement:
With a market capitalization of Rs. 1,040 crores, the shares of RBM Infracon Ltd started Friday’s trading session on a flatter note at Rs. 979 compared to 980.80. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 1,029.80 apiece, also recorded as the company’s fresh 52-week high.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had signed a MoU with Greenzo Energy India Limited, a leading technology firm.
This partnership aims to develop and implement green hydrogen generation facilities with a total capacity of 15MW at two locations in Gujarat i.e., Jamnagar and Kutch, involving a total investment of Rs. 200 crores.
Under the terms of the MoU, RBM Infracon will serve as the developer, integrator, and sole owner of the hydrogen generation facilities. The company will be responsible for overall project management, construction activities, and the development of ancillary facilities.
Further, Greenzo Energy India Limited will play a key role in supporting the design, development, engineering, procurement, and commissioning of the plants.
Their expertise will encompass various components, including electrolyzer units, gasification units, storage facilities, and advanced control systems.
The project will be executed in phases, with each unit designed for 5MW capacity. The initial phase will launch in Jamnagar, followed by a gradual expansion into Kutch, contingent upon market demand.
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.
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.
Order Book:
As per the latest data, RBM Infracon’s total order book has reached over Rs. 4,898 crores, representing 5.03 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).
Recent Development:
Earlier, the company 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.
Customer Base:
RBM Infracon Ltd has a diverse customer base primarily in the mechanical and civil engineering sectors, serving industries such as oil and gas, petrochemicals, power generation, fertilizers, and cement.
Notable clients include major players like Reliance Industries, Nayara Energy, and Adani Group, reflecting the company’s strong presence in critical infrastructure projects.
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.
Additionally, RBM is expanding into emerging sectors like solar energy and green hydrogen, enhancing its service offerings.
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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