In Friday’s trading session, the share price of the integrated EPC company surged 4.2 percent on BSE to Rs. 221.85, after the company secured an order worth Rs. 55.5 crores from Avadi City Municipal Avadi City Municipal under Tamilnadu Climate Resilient Urban Development Plan.
With a market cap of Rs. 830.7 crores, at 11:24 a.m., the shares of RPP Infra Projects Limited were trading in the green at Rs. 218.95, up by 2.8 percent, compared to its previous closing price of Rs. 212.9.
What’s the news:
According to the latest regulatory filings on the stock exchanges, RPP Infra received an order worth Rs. 55.5 crores from Avadi City Municipal Corporation, Avadi, Chennai, under the Tamilnadu Climate Resilient Urban Development Plan, with an execution period of 5 years.
The order is to provide 24×7 water supply to the pilot water zones, and improve the existing water supply distribution system along with left-out areas of Avadi City Municipal Corporation including operation & maintenance (O&M) for 5 years.
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.
Financial:
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 FY23-24 to Rs. 340 crores in Q1 FY24-25.
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 13.3, compared to the industry’s P/E ratio of 25.8, indicating that the stock is trading at a lower price or in other words, the stock is undervalued.
In terms of return ratios, RPP Infra Projects has reported a return on equity (ROE) of 14.5 percent, and a return on capital employed (ROCE) of 21.2 percent.
Stock Performance:
The shares of RPP Infra Projects have delivered multibagger returns of nearly 245.2 percent in one year and around 88.8 percent in the last six months. So far in 2024, it has given about 79.4 percent of positive returns.
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
Written by Shivani Singh
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