Shares of this multibagger micro-cap stock associated with the business of ‘Civil Construction’ hit the 5 percent upper circuit in Tuesday’s trading session after the company received a Letter of Acceptance (LoA) for a Domestic work order worth Rs 94.13 crores.
With a market capitalization of Rs 414.69 crores, the stocks of RPP Infra Projects Limited started their trading session on Tuesday hitting the 5 percent upper circuit at Rs 109.30, and currently are locked at the same price.
Such stock price movements are observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has received a Letter of Acceptance (LoA) for a Domestic work order worth Rs 94.13 crores.
The abovementioned order is received from the “State Industries Promotion Corporation of Tamil Nadu Limited” (SIPCOT) for various purposes, viz, for the formation of Northern, Western & Eastern Side Internal Roads, construction of RCC Drains, Providing Pipe causeway and Street Light arrangements, etc in SIPCOT Industrial Park. The period for executing the same is decided to be 11 months.
Keeping a purview of the last one year, the company’s stock has delivered multibagger returns of 184 percent for its stakeholders, viz, if someone had invested Rs 1 lakh into the stock a year ago, it would have converted to Rs 2.84 lakhs.
During the recent financial quarters, the company’s basic business indicators, i.e., its operating revenues as well as after-tax profits, faced a dip in numbers with the former slipping from Rs 372 crores during Q2FY24 to Rs 326 crores during Q3FY24 and the latter, during the same period, falling marginally from Rs 17 crores to Rs 16 crores.
On a contrasting note, the profitability ratios of the company were on the rise during the recent periods with the return on equity (RoE) increasing from 1.59 percent during FY21-22 to 8 percent during FY22-23, and the return on capital employed (RoCE), during the same period, jumping from 6.81 percent to 13.76 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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