scorecardresearchRPP Infra Projects surges 5% to 52-week high after company receives orders

RPP Infra Projects surges 5% to 52-week high after company receives orders worth 482 crore

Updated: 26 Sep 2023, 10:18 AM IST
TL;DR.

RPP Infra Projects secures multiple new contracts, leading to a surge in shares by 5% to a 52-week high. RPP is one of the leading and rapidly growing integrated EPC companies in India.

The company's shares have been on a winning streak over the last six months, gaining 74% to date on strong order wins.

The company's shares have been on a winning streak over the last six months, gaining 74% to date on strong order wins.

Shares of RPP Infra Projects surged by 5% to reach a new 52-week high of 71.15 per share in early trading on Tuesday. This significant increase came on the heels of the company securing new contracts worth 482.37 crore. In an exchange filing on Monday, the company announced that it secured a letter of acceptance for the Road and Drain Works-1 for the CBR Project of CPCL at Nagapattinam, Tamil Nadu, at a contract price of 300.44 crore.

Additionally, the company will be undertaking the provision of civil works and allied services for the engine test facility along with ancillary work for GRTE at Rajankute, Bengaluru, Karnataka, with a contract price of 90.18 crore, and it has also secured a LoA from Thoothukudi City Municipal Corporation for the construction of a storm water drain from Ponsubbiah Nagar to Loorthammalpuram Main Road Package 4 under the ADB Tamilnadu Urban flagship investment Program-tranche 3 at a contract price of 16.88 crore

Furthermore, the company also announced it had received a letter of acceptance for another project in a joint venture format, with RPP owning a 51% stake. This project involves the improvement of existing CWSS in Pudukkottai municipality and includes services for three town panchayats and fifteen wayside habitations in Pudukkottai district, Tamil Nadu, with a total contract value of 74.87 crore.

RPP is one of the leading and rapidly growing integrated EPC companies in India, with a well-diversified presence in highways, roads and bridges, civil construction (water management), irrigation, mass & affordable housing, and power projects.

The company's shares have been on a winning streak over the last six months, gaining 74% to date on strong order wins.

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Stock Price chart of RPP Infra Projects.

The company continues to maintain a robust order book, which stood at 3,200 crore at the end of FY2023, in contrast to 2,664 crore in FY2022. RPP Infra Projects anticipates sustaining its growth momentum in the order book, largely attributed to its commitment to timely and high-quality execution.

Moving forward, the government’s continuous spending on infrastructure development, including on roads and highways, mass housing, water and irrigation, and power projects, continues to be a major growth driver for the company. Thus, RPP will be a major beneficiary of increasing opportunities in the infrastructure sector, which is reflected in sustainable order wins over the years, the company said in its FY23 annual report.

Moreover, the company's revenues have witnessed substantial expansion, increasing from 580.69 crore in 2018–19 to 1,005.23 crore in 2022–23, underscoring its upward trajectory and solid performance in recent years.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.

 

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First Published: 26 Sep 2023, 10:18 AM IST