Infrastructure stocks surged after receiving a ₹29 crore Letter of Acceptance from Bharat Heavy Electricals Ltd
Infrastructure stocks surged : The shares of rapidly growing infrastructure companies surged by up to 2.2 percent following the receipt of a letter of acceptance from BHEL for Rs 28.77 crore.
RPP Infra Projects Limited, with a market capitalization of Rs 677.83 crore, saw its shares trading at Rs 178.00 each, a slight increase of around 0.08 percent compared to the previous closing price of Rs 178.15.
The rise in share value can be attributed to RPP Infra Projects Limited securing a letter of acceptance from BHEL for the Erection, Testing & Commissioning of a cooled Condenser (ACC) and associated auxiliaries of Unit 2 at 3×800 MW PVUNL STPP Patratu, Jharkhand, with a contract value of Rs 28.77 crores.
In terms of financial performance, the company experienced a 6 percent increase in revenue from Rs 372 crore in Q2FY24 to Rs 394 crore in Q2FY25, while net profit rose by 12 percent from Rs 17 crore to Rs 19 crore during the same period.
With a P/E ratio of 13.6, lower than the industry average of 23.8, it suggests that the stock is undervalued. Furthermore, the company’s debt-to-equity ratio stands at 0.07, indicating a strong financial position.
Strong Order Book
The company boasts a strong order book comprising 54 projects valued at Rs 6,088.78 crores. Currently, Rs 2,626.01 crores worth of project work has been completed and billed, leaving Rs 3,399.80 crores worth of work yet to be executed.
With a robust order book of Rs. 3,399.80 crores and the addition of Rs. 1,568.23 crores worth of projects in Q2FY25, the company is confident in its progress towards achieving its vision of becoming a global leader in the construction industry.
Impressive Returns
The stock has delivered significant returns of nearly 185.30 percent over the past five years, with around 45 percent of positive returns in the last six months. In 2024 alone, shares of RPP Infra Projects have yielded positive returns of about 45 percent.
Recent Project Success
RPP Infra Projects Limited recently announced that it has secured letters of acceptance for two projects from the Maharashtra State Infrastructure Development Corporation Limited. Both projects are slated for completion within two years.
The first project, valued at Rs. 201.94 crores, involves the construction of a concrete pavement road, as well as the reconstruction and widening of bridges and culverts. This project 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 Overview
R.P.P Infra Projects Limited is involved in construction across various infrastructure verticals such as roads, buildings, industrial structures, power, irrigation, and water management. The company executes projects in states like Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Telangana, and Madhya Pradesh, among others.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.