Shares of this microcap company surged around 18 percent in Monday’s trading session after receiving an order worth Rs. 152.11 crores for the construction of New District Jail. In one year, the stock has delivered a multi-bagger return of 182 percent to its shareholders.
Price Movement:
With a market capitalization of Rs. 576 crores, the shares of RPP Infra Projects Ltd started Monday’s trading session on a higher note at Rs. 140.97 compared to its previous close of Rs. 129.83. During the trading session, the shares hit a high of Rs. 154, gaining around 18 percent and are currently trading at Rs. 150 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received a letter of acceptance for new projects viz execution of Design, Engineering, and Procurement for the construction of New District Jail with a 1,026 capacity at District Hathras Uttar Pradesh, India, on EPC Mode at a contract price of Rs. 152.11.crores including GST.
Financials:
Looking at the company’s financial performance, the revenue increased by 26 percent from Rs. 325.78 crores during the December quarter to Rs. 412.01 crores in the March quarter. On the other hand, the net profits decreased by around 16 percent from Rs. 16.11 crores to Rs. 13.61 crores during the same period.
Recent Order:
Earlier, the company with its joint venture had received a new project for a major up-gradation of the Raipur railway station of SECR on the Engineering, Procurement and Construction (EPC) model for the Value of Rs. 412.81 crores.
Important Financial Ratios:
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 8 percent during FY 22-23 to 13.44 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 13.76 percent to 21.44 percent during the same timeframe. Furthermore, the net profit margin increased from 2.78 percent during FY22-23 to 4.22 percent during FY23-24.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold 50.88 percent of the stake, the Public holds 48.64 percent of the shares, and the remaining 0.49 percent of the stakes are held by Foreign Institutional Investors (FIIs).
Company Profile:
Headquartered in Erode, RRP Infra Project Ltd was established in the year 1995. The company is a construction company primarily engaged in the business of infrastructure development such as Highways, Roads, and Bridges. Moreover, they provide integrated engineering, procurement, and construction services, for civil construction and infrastructure projects.
Written By Vaibhav Patil
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