The shares of this microcap company hit a 5 percent upper circuit after announcing strong Q2 results. Since one year, the stock has delivered multibagger returns of 123 percent to its stakeholders. For example, if someone had invested Rs. 1 lakhs a year ago, the worth of those shares would be Rs. 2.23 lakhs now.
With a market capitalization of Rs. 295 crores, the shares of RPP Infra Project Ltd started their Thursday trading session on a higher note. The shares hit a 5 percent upper circuit at Rs. 81.65 apiece within a few minutes of the opening bell.
Such a bullish movement was observed after the company announced its June-September results. The company’s revenue increased by 35 percent from Rs. 243.20 crores during the June quarter to Rs. 243.20 crores in September. In addition, the net profit zoomed by 63 percent from Rs. 10.44 crores to Rs. 17.03 crores in the same timeframe.
Comparing these metrics on a YoY basis, the revenue jumped by 46 percent from Rs. 255.60 crores during Q2 FY23 to Rs. 372.42 crores in Q2 FY24. Furthermore, the net profit magnified by 873 percent from Rs. 1.75 crores to Rs. 17.03 crores during the same period.
Looking at the important financial ratios, the return on equity improved from 1.75 percent in FY21-22 to 8.33 percent during FY22-23 and the return on capital employed increased from 7.38 percent to 13.9 percent during the same time horizon.
According to the latest shareholding pattern, Promoters have a 51.29 percent stake in the company, the Public or Retail Investors have 47.93 percent shares, FIIs have a 0.79 percent stake, and the remaining 0.01 percent is with DIIs.
Headquartered in Erode, RRP Infra Project Ltd was established in the year 1995. The company is a construction company primarily engaged in the business of infrastructure development such as Highways, Roads, and Bridges. Moreover, they provide integrated engineering, procurement, and construction services, for civil construction and infrastructure projects.
Written By Vaibhav Patil
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