Infra stock hits 5% upper circuit after receiving ₹81 Cr order from Chennai Sewerage Board

The shares of the fast-growing infrastructure company hit 5 percent upper circuit after the company secured a significant work order from Chennai Metropolitan Water Supply and Sewerage Board for Rs 80.98 crore. 

Price Movement 

With a market capitalization of Rs 523 crore, the shares of RPP Infra Projects Limited were trading at Rs 137.55 per share, increasing around 5 percent as compared to the previous closing price of Rs 131.00 apiece. 

Reason For Rise 

The shares of the company have seen positive movement after RPP Infra Projects Limited secured a significant work order worth Rs 80.98 crore, from Chennai Metropolitan Water Supply and Sewerage Board, for the construction of integrated storm water drain works in M1 & M2 components in kovalam basin in expended areas in greater chennai corporation package 16 covering various streets of zone 15 under Kfw fund. 

Financial condition 

Analyzing the company’s financial performance, revenue zoomed by 9 percent from Rs 326 crore in Q3FY24 to Rs 355 crore in Q3FY25, during the same time, net profit stretched by 19 percent from Rs 16 crore to Rs 19 crore. 

It has a P/E ratio of 10.1, compared to the industry’s P/E ratio of 18.8, indicating that the stock is trading at a lower price, the stock is undervalued. Additionally, the company’s debt-to-equity ratio stands at 0.07. 

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Robust Order Book 

The company’s current order book consists of 44 projects with an outstanding value of Rs 2,993.92 crores yet to be executed. These projects, along with anticipated new contracts, are expected to drive significant growth in the current and upcoming financial years. With a strong order pipeline, the company remains focused on timely execution and expansion. 

During the current year up to January 2025, the company secured 15 new projects worth Rs 1,575.21 crores in India. Additionally, it has been awarded a residential complex project, “Legend 96,” in Sri Lanka, valued at approximately Rs 764 crores, further strengthening its global presence. 

Recent Projects

RPP Infra Projects Limited has announced through recent regulatory filings that it has secured letters of acceptance from the Maharashtra State Infrastructure Development Corporation Limited.

The project, valued at Rs. 201.94 crores, involves the construction of a concrete pavement road, along with the reconstruction and widening of bridges and culverts. This work will span from Alibag Bypass Road to Alibag Roha Junction, continuing to Belkade, Garudpad Nagaon Hatale, and ending at Revdanda Bridge Road in Maharashtra. 

Company profile

R.P.P Infra Projects Limited is engaged in construction across multiple infrastructure verticals like roads, buildings, industrial structures, power, irrigation, and water management. It executes various projects in Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Telangana, Madhya Pradesh, etc 

Written by Abhishek Singh

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