RPP Infra Soars 20% After Securing Rs. 152 Crore Construction Project in UP

RPP Infra Projects is a construction company primarily involved in infrastructure development, including highways, roads, and bridges. The company has recently backed a contract added to its order book, now totaling Rs. 3,300 crores.

New Project Details

RPP Infra Projects has announced securing a letter of acceptance (LoA) for constructing a new district jail in Hathras, Uttar Pradesh. The Office of the Superintending Engineer of PMGSY circle in Agra awarded this project to the company. The contract includes the design, engineering, and procurement for building a district jail with a capacity of 1,026 inmates. The execution period for this EPC mode contract is set at 18 months, with a fixed contract price of Rs.152.11 crore, inclusive of GST.

Financial Performance

For Q4FY24, RPP Infra Projects reported a 15% decline in net profit after tax, dropping to Rs.13.6 crore from Rs.16 crore in Q4FY23. Despite this, the company’s consolidated total income from operations surged by 35.7% YoY, reaching Rs 434.85 crore in Q4 FY24 compared to Rs.320.42 crore in Q4 FY23. However, the operating profit margin saw a dip from 3.73% in Q4FY23 to 1.15% in Q4 FY24.

Share Price Surge

RPP Infra Projects Ltd witnessed a significant surge in its share price, reaching around 13% up today. The shares peaked at an intraday high of Rs.153 per piece following the announcement of this new project worth Rs.152 crore. During the afternoon session at 2 pm, the shares were trading at Rs.151 each.

Market Performance 

RPP Infra Projects’ share hit a 52-week high of Rs.161.45 on February 7, 2024, and a 52-week low of Rs.51.45 on June 27, 2023. The company’s RSI stands at 62.6, indicating the stock is neither overbought nor oversold. 

Conclusion: RPP Infra Projects’ contract win and significant order book growth highlight its strong market position despite recent profit declines. The company’s robust financial performance, reflected in a 35.7% YoY revenue increase, and positive market response, marked by a 13% share price surge today, brings out potential for future growth in infrastructure development.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.