The shares of this Kolkata-based company, with experience in real estate construction, development, and other related activities, spiked over 4 percent after it won a contract worth Rs 42 crores.
Price movement
With a market capitalization of Rs. 1,006 Crores, the shares of RDB Realty & Infrastructure Ltd made a day high of Rs 61 per share, up by 4.75 percent from its previous day’s close price of Rs. 58.23.
About the Agreement
On 8 March 2024, RDB Realty & Infrastructure Ltd announced that it had received a work contract from M/s Vardhman Group Realbuild LLP worth Rs 42 crore [excluding GST or any other taxes].
As the company reported, the work includes the construction of a basement, ground floor, podiums, and an upper floor with an underground tank, overhead tanks with firefighting tanks, and a lift machine room with a G+33 upper floor design on the property bearing CS No. 1282 Sandhurst Road West, Girgaon in “D” Ward, Village Mumbai City, Taluka Mumbai City, Mumbai—400004, Maharashtra, India, with a built-up area measuring approximately 2,00,000 Sq. ft.
Rs.1 crore has been paid toward the security deposit, and the rest will be paid after the completion of the work. A retention rate of 5 percent on each bill has also been added to the contract. The project has a completion deadline of 24 months, starting from 7 March 2025.
Financial Overview
It posted a revenue of Rs 24.18 crores in Q3 FY25, down by 25 percent from its previous quarter revenue of Rs 32.48 crores. However, on a year-on-year basis, revenue has climbed 251 percent from its Q3 FY24 revenue. Whereas, Net Profit stands at Rs 1.73 crores as of Q3 FY25, up by 1.7 percent from its previous quarter and reported a Net Profit of ₹0.92 crore, on a y-o-y basis.
Other Information
It has a high PE of 234x, significantly higher than its industry PE of 26.38x and its median PE of 27.8x, signaling overvaluation. It has a low ROE (3 years) of 4% and a ROCE of 3.20%.
Company Overview
RDB Realty & Infrastructure Ltd deals in real-estate construction, development, and other related activities. It is a part of the RDB group and has a presence in the real estate sectors of Kolkata, Mumbai, Hyderabad, and many other cities. The company offers major services in developing residential and commercial projects. The company has executed and handed over possession of residential/commercial projects covering an area of 1,27,292 sq. ft.
Written by Satyajeet Mukherjee
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