Shares of this micro-cap stock associated with the business of ‘Civil Construction’ hit the 5 percent upper circuit in Monday’s trading session after the company received multiple Letters of Acceptance (LoA) totaling Rs 183.59 crores for the construction of Integrated Storm Water Drain work.
With a market capitalization of Rs 463.26 crores, the stocks of RPP Infra Projects Limited started their trading session on Monday at Rs 122.10 hitting the 5 percent upper circuit, and are currently locked at the same stock price. The locked price also represents the company’s new 52-week high mark.
Such stock price movements are observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has received multiple Letters of Acceptance (LoA) totaling Rs 183.59 crores from the Superintending Engineer, Stormwater Drain Department, Chennai for the construction of Integrated Storm Water Drain work.
Keeping a purview of six months, the company’s stock has delivered multibagger returns of 113 percent for its stakeholders, viz, if someone had invested Rs 1 lakh into the stock six months ago, it would have converted to Rs 2.13 lakhs.
During the recent financial quarters, the company outperformed as far as the operating revenues and after-tax profit numbers are concerned. The former jumped from Rs 243.2 crores during Q1FY23-24 to Rs 372.42 crores during Q2FY23-24 and the latter, during the same horizon, increased from Rs 10.44 crores to Rs 17.03 crores.
In addition, the profitability ratios of the company were on the rise during the recent periods with the return on equity (RoE) increasing from 1.75 percent during FY21-22 to 8.33 percent during FY22-23, and the return on capital employed (RoCE), during the same period, jumping from 7.83 percent to 13.9 percent.
Founded in 1988, RPP Infra Projects Limited is engaged in the engineering and construction business. The firm’s construction business has a presence across multiple infrastructure verticals including roads, buildings, power, irrigation, industrial structures, and water management.
Written by Amit Madnani
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