The shares of fast-growing infrastructure companies gained up to 9 percent after the company bagged a letter of acceptance from State Industries Promotion Corporation of Tamilnadu Ltd worth Rs 38.32 crore.
With a market capitalization of Rs 666.22 crore, the shares of RPP Infra Projects Limited were trading at Rs 174.95 per share, increasing around 2.10 percent as compared to the previous closing price of Rs 171.35 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after RPP Infra Projects Limited bagged a letter of acceptance from State Industries Promotion Corporation of Tamilnadu Ltd for a new project Sipcot- Formation of Balance Internal Roads including the Construction of Rcc Side Drain & Culverts and Providing Street Lights at Mega Leather Park Panapakkam in Ranipet District Tamilnadu for a Contract Value of 38.32 Crores.
Financial condition:-
Analyzing the company’s financial performance, revenue zoomed by 6 percent from Rs 372 crore in Q2FY24 to Rs 394 crore in Q2FY25 but during the same time, net profit stretched by 12 percent from Rs 17 crore to Rs 19 crore.
It has a P/E ratio of 13.6, compared to the industry’s P/E ratio of 23.8, 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 0.07.
Robust OrderBook:-
The company has a robust order book consisting of 54 projects valued at Rs 6,088.78 crores. Of this, Rs 2,626.01 crores of project work has already been completed and billed, leaving Rs 3,399.80 crores worth of work yet to be executed.
With a robust order book of Rs. 3,399.80 crores and the addition of Rs. 1,568.23 crores worth of projects in Q2FY25, the company is optimistic about its progress toward achieving its vision of becoming a global leader in the construction industry.
Remarkable Return:-
The stock has delivered multibagger returns of nearly 185.30 percent of returns in five years, and around 45 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 percent.
Recent Projects:-
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.
Company profile:-
R.P.P Infra Projects Limited is engaged in construction across multiple infrastructure verticals like roads, buildings, industrial structures, power, irrigation, and water management. It executes various projects in Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Telangana, Madhya Pradesh etc
Written by:- Abhishek Singh
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