Shares of this penny stock hit the 5 percent upper circuit after the company received several orders worth Rs 482.37 crores. In the past six months, the company’s stock has gained more than 80 percent. 

With a market capitalization of Rs 268.30 crores, the stocks of RPP Infra Projects Limited started their trading session on Tuesday at its 5 percent upper price band of Rs 71.36 apiece. The same price is also recorded as the company’s fresh 52-week high levels. 

Such sharp stock price movements were observed after the company, through a regulatory filing with the BSE, announced that it has bagged several orders worth Rs 482.37 crores. 

It comprises four different orders starting with Chennai Petroleum Corporation Limited awarding a project worth Rs 300.44 crores for Road and drain works in Tamil Nadu. Defence Research & Development Organization also provided an order worth Rs 90.18 crores for civil works and other allied services in Bengaluru. 

In addition, the company also received an order from Municipal Corporation based in Tamil Nadu for construction of a storm water drain worth Rs 16.88 crores. It also received an order from the Chief Engineer, Tamil Nadu worth Rs 74.87 crores for Twad Board-Improvement. 

Digging into the financial performance of the company in the past couple of financial years, the basic business indicators such as the operating revenues and net profits have shown decent improvements. 

The operating revenues moved up from Rs 801 crores during FY21-22 to Rs 1,040 crores during FY22-23, and, the net profits took a shift from Rs 5 crores to Rs 28 crores during the same time horizon. 

Additionally, the company has seen an upward trend in the profitability metrics with the return on equity (RoE) jumping from 1.59 percent during FY21-22 to 8.38 percent during FY22-23, and, the return on capital employed (RoCE) moving up from 6.81 percent to 13.42 percent. 

According to the latest shareholding pattern data available as per the June 2023 quarter, the company’s Promoters hold a 51.29 percent stake, and the Foreign Institutional Investors (FIIs) hold a 0.39 percent stake in the company. 

RPP Infra Projects Limited is involved in the business of construction and engineering activities. The company engages in construction activities across multiple infrastructure verticals like buildings, roads, power, water management, etc. It derives a majority of its revenues from domestic operations within India. 

Written by Amit Madnani

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