Infra stock jumps 5% after receiving ₹63 Cr order for construction project

The shares of fast-growing infrastructure companies gained up to 5 percent after the company received a letter of acceptance from the Superintending Engineer office in Tirupur for Rs 62.78 crore.

Price movement

With a market capitalization of Rs 677.83 crore, the shares of RPP Infra Projects Limited were trading at Rs 178.00 per share, increasing around 0.08 percent as compared to the previous closing price of Rs 178.15 apiece.

Reason for Rise

The shares of the company have seen positive movement after RPP Infra Projects Limited received a letter of acceptance from the Superintending Engineer office in Tirupur for widening from two lanes to four-lane of Avinashi- Mettupalayam Road [SH’80) including the reconstruction of box culvert and construction of drain and retaining wall in Tirupur, Tamil Nadu for an aggregate amount of Rs 62.78 crore.

Financial condition 

Analyzing the company’s financial performance, revenue zoomed by 8 percent from Rs 326 crore in Q3FY24 to Rs 355 crore in Q3FY25 but 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 13.6, compared to the industry’s P/E ratio of 23.8, indicating that the stock is trading at a lower price or in other words, the stock is undervalued. Additionally, the company’s debt-to-equity ratio stands at 0.07. 

Also read: 10% Upper Circuit: Stock jumps after receiving ₹16 Cr order from Cochin International Airport

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 for two projects from the Maharashtra State Infrastructure Development Corporation Limited. Both projects are scheduled to be completed within two years. 

The first 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

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Infra stock jumps 5% after receiving ₹63 Cr order for construction project appeared first on Trade Brains.