RBM Infracon jumps 5% after receiving ₹11 Cr orders from  domestic client

The shares of this micro-cap company gained up to 5 percent  after the company bagged two prestigious work orders from  domestic client for Rs 11 crore

Price movement

RBM Infracon Ltd has a market capitalization of Rs 334.66 crore, the shares were trading at Rs  331 per share, decreasing around 2.24 percent as compared to the previous closing price of Rs 322 apiece.

Reason of Rise 

RBM Infracon Ltd secured two prestigious work orders from Reliance Industries and Nayara Energy Ltd for Fabrication & Erection of Piping & Structural work and Mechanical work. The total contract value is Rs 11 crore, highlighting the company’s growing expertise in infrastructure and industrial projects.

Financial performance 

Looking into the company’s financial condition, RBM Infracon Ltd’s revenue zoomed by 96 percent from Rs 33.37 Crore in Q3FY24 to 65.14 Crore in Q3FY25. During the same time frame, net profits magnified drastically by 37 percent from Rs 4.87 crore to Rs 6.70 crore.

Order Book & client base 

The company has a robust order book of more than Rs 4,727 crore. The company has completed 87 projects to date and RBM has 17 ongoing projects with more than 18 clients which include Reliance Industries, Malco Energy, Praj Industries, Dalmia Bharat Ltd, and Others.

Also read: Penny pharma stock jumps 5% after company to acquire 51% stake in Kesar Pharma

Recent Order

Recently RBM Infracon Ltd received a fresh work order of Rs 3,498 crore including Rs 3,371 crore for Crude and 127 crore for Gas at Nandej from Oil and Natural Gas Corporation Ltd. The time to execute the order is 15 years or 180 months from the effective date.

Moreover, the company received another order from Redi Port Ltd, Maharashtra for Repairs and maintenance at Redi Port, Taluka Vengurla, District Sindhudurg, Maharashtra. This order is valued at Rs 69.03 lakhs.

Ratio analysis 

The company’s critical ratios show that the return on equity declined from 12.82 percent in FY22-23 to 11.41 percent in FY23-24, while the return on capital employed magnified from 20.21 percent to 18.20 percent. The net profit margin (NPM) for fiscal year 23-24 is 8.55 percent.

Company profile 

RBM Infracon Limited provides construction, maintenance, and turnaround services to oil and gas refineries, petrochemicals, fertilizers, gas cracker plants, coal/gas/WHR-based power plants, chemicals, cement, fertilizers, sugar plants, paper plants, irrigation, and other related industries.

Written by:- Abhishek Singh

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