Shares of this Penny stock hit their 52-week high after JV company received a Letter of Acceptance ((LoA) for a project in Himachal Pradesh worth Rs 138.24 crores.
With a market capitalization of Rs 240 crores, the stocks of RPP Infra Projects Limited closed today at Rs 64. The scrip witnessed an intra-day high of Rs 68.60, also marked as the company’s fresh 52-week high level, representing a gain of 9 percent compared to the previous closing levels of Rs 62.90.
The company, through a regulatory filing with the exchange, announced that the Joint Venture (JV) company of RPP Infra Projects Limited (51% holding) and HS Engineers Associates (49% holding) has bagged an order worth Rs 138.24 crores.
The project is pertaining to the engineering, procurement, construction, testing, commissioning, trial runs, operation, and maintenance of various components of various Lift Water Supply Schemes (LWSS) from the River Beas in the Barsar district, Himachal Pradesh.
RPP Infra Projects Limited, along with its JV partner, will invest in the project according to their capacity of holding and complete the project within the timeline agreed upon.
Having a glance at the consolidated financials, the company, on a consolidated basis, has consistently increased its revenues with the most recent movement being from Rs 801 crores during FY21-22 to Rs 1,040 crores in FY22-23. Moreover, the net profit figures took a jump from Rs 5 crores to Rs 28 crores.
Due to the above, the profitability metrics such as the return on equity (RoE), as well as return on capital employed (RoCE), showed positive movements with the former increasing from 1.59 percent during FY21-22 to 8.38 percent in FY22-23, and, the latter, during the same time horizon, moving from 6.81 percent to 13.42 percent.
RPP Infra Projects Limited, with its operations in India, is engaged in the construction business across various infrastructure verticals such as buildings, roads, power, water management, and many more.
Written by Amit Madnani
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