The shares of RPP Infra Projects, a microcap company rallied 13.83% on Friday’s early trades to reach an intraday high of ₹ 46.50 apiece on the National Stock Exchange (NSE). Its shares were trading at ₹ 44.60, up 9.18% apiece at 11:33 AM.
RPP Infra Projects Ltd. (RIPL) is engaged in the construction of roads, buildings, industrial structures, power, irrigation and waste management.
The company informed the bourses that it has received a letter of acceptance for a new order for the construction of Integrated Storm Water Drain Works in M1 & M2 components in the Kovalam Basin in expanded areas in the Greater Chennai Corporation Package 8, covering various streets of zone 14 for the contract price of ₹ 59.92 crores. This order is expected to be completed within 24 months from the appointed date.
RIPL is a micro-cap stock with a market capitalization of 154 crores. It has a low return on equity of 1.72%, but an ideal debt-to-equity ratio of 0.31. The company’s shares were trading at a price-to-earnings ratio (P/E) of 75.07, which is significantly higher than the industry P/E of 9.05, indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
