During Tuesday’s trading session, the shares of the integrated EPC company surged 4.8 percent to Rs. 177.55 on BSE, after the company announced securing two projects worth a total of around Rs. 318.64 crores from the Maharashtra State Infrastructure Development Corporation Limited.
With a market capitalisation of Rs. 676.2 crores, the shares of RPP Infra Projects Limited opened at Rs. 161, as against its previous closing price of Rs. 169.1.
What’s the News:
RPP Infra Projects Limited has announced through recent regulatory filings that it has secured letters of acceptance for two projects from the Maharashtra State Infrastructure Development Corporation Limited. Both projects are scheduled to be completed within two years.
The first project, valued at Rs. 201.94 crores, involves the construction of a concrete pavement road, along with the reconstruction and widening of bridges and culverts. This work will span from Alibag Bypass Road to Alibag Roha Junction, continuing to Belkade, Garudpad Nagaon Hatale, and ending at Revdanda Bridge Road in Maharashtra.
The second project, amounting to ~Rs. 116.7 crores, focuses on improving the Pachorowadi-Shewalesatgaon Road leading to Tal Pachora in the Nashik district of Maharashtra.
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Previous Orders:
On 24th June, RPP Infra Projects received a letter of acceptance for the construction of a New District Jail with 1026 capacity at District Hathras (UP), India, on EPC Mode at a contract price of Rs. 152.11 crores, with an execution period of 18 months.
On 9th July, the company secured an order worth a total of Rs. 310.93 crores for the construction of two New District Jail with 1026 capacity each at Hapur and Jaunpur (UP), India, on the Engineering, Procurement and Construction (EPC) model, both to be executed in 1 year 6 months.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 40 percent from Rs. 243 crores in Q1 FY24 to Rs. 340 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 10 crores to Rs. 16 crores, indicating a rise of nearly 60 percent YoY.
It has a P/E ratio of 14.1, compared to the industry’s P/E ratio of 22.6, indicating that the stock is trading at a lower price or in other words, the stock is undervalued. Additionally, the company’s debt-to-equity ratio stands at 0.1.
Order Book:
As of Q1 FY25, RPP Infra Projects has an order book comprising 52 projects valued at Rs. 5,671.58 crores. Of this total, Rs. 2,315.16 crores worth of project work has been completed and billed, leaving Rs. 3,356.43 crores worth of work yet to be executed.
With a robust order book of Rs. 3,356.43 crores and the addition of Rs. 805.25 crores worth of projects in Q1 FY25, the company is optimistic about its progress toward achieving its vision of becoming a global leader in the construction industry.
Stock Performance:
The stock has delivered multibagger returns of nearly 130 percent of returns in one year, and around 47.7 percent of positive returns in the last six months. So far in 2024, the shares of RPP Infra Projects have given positive returns of about 45.4 percent.
About the company:
RPP Infra Projects Limited is primarily engaged in three major segments: infrastructure development, residential and commercial buildings, and water management. It is engaged in construction across multiple infrastructure verticals like roads, buildings, industrial structures, power, irrigation and water management.
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Written by Shivani Singh
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