One of the micro-cap infra stocks engaged in construction across multiple infrastructure verticals like roads, buildings, industrial structures, power, irrigation, and waste management. The stock has hit a 5 percent upper circuit after partnering with the Paper Pack Packaging industry and acquiring a 95 percent Profit Sharing Ratio.
Stock Price Movement
With a market capitalization of Rs. 761.04 crores, the shares of RPP Infra Projects Limited’s stock surged by 5 percent, reaching an upper circuit of Rs. 201.85 per share on Thursday, up from its previous closing price of Rs. 192.25 per share. Since then, the stock has retreated and is currently trading at Rs. 199.85 per equity share.
What happened
RPP Infra Projects Limited has approved entering into a partnership agreement with the Paper Pack Packaging Industry, contributing up to Rs. 8 crore with a 95% profit-sharing ratio.
This strategic move strengthens the company’s portfolio, ensuring synergies in operations while adhering to arm’s length principles for related party transactions, as per regulatory norms.
Project Overview
RPP Infra Projects Limited secured 10 new projects worth Rs. 1,568.23 crore by October 2024, with a focus on infrastructure (Rs. 1,014.06 crore), buildings (Rs. 463.07 crore), and water management (Rs. 91.10 crore).
The company’s robust order book totals Rs. 6,088.78 crore, with Rs. 2,626.01 crore completed and Rs. 3,399.80 crore pending, showcasing a strong market presence and sustainable growth potential.
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Recent quarter results and ratios
RPP Infra Projects Limited’s revenue has increased from Rs. 372 crore in Q2 FY24 to Rs. 394 crore in Q2 FY25, which has grown by 5.91 percent. The net profit of RPP Infra Projects Limited has also grown by 11.76 percent from Rs. 17 crore in Q2 FY24 to Rs. 19 crore in Q2 FY25.
RPP Infra Projects Limited’s revenue and net profit have grown at a CAGR of 38.16 percent and 52.73 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 22.6 percent and 14.4 percent, respectively. The debt-to-equity ratio of the company is to be 0.07x, which shows the company is almost debt-free. RPP Infra Projects Limited’s EPS is to be Rs. 15.8.
Shareholding pattern
In September 2024, RPP Infra Projects Limited had a majority stake held by the promoters at 50.88 percent, foreign institutional investors at 0.48 percent, and the public at 48.64 percent.
Company Overview
RPP Infra Projects Limited was established in 1995 and specializes in infrastructure development across diverse sectors, including highways, bridges, buildings, irrigation, and waste management. The company adopts an asset-light model and leverages joint ventures to expand its capabilities in delivering efficient infrastructure solutions.
Written By – Nikhil Naik
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