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RPP Infra Secures Rs 310 Crore Order, Stock Jumps Over 30% In Two Sessions

16 July 20243 mins read by Angel One
On Tuesday, RPP Infra experienced a 12% increase in their stock price after securing Rs. 310 crore for the construction of two new jail projects.
RPP Infra Secures Rs 310 Crore Order, Stock Jumps Over 30% In Two Sessions
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RPP Infra Projects specializes in infrastructure development, focusing on projects such as highways, roads, and bridges. The company provides civil and infrastructure services, including construction and procurement, through Engineering, Procurement, and Construction (EPC). RPP has expanded its expertise in civil works to include SEZ development, water management, irrigation, and power projects, both domestically and internationally. RPP is currently building 2 new jails within the next 18 months as part of a project. The company has been awarded the Letter of Acceptance for constructing a new district jail in Hapur, Uttar Pradesh, on an EPC model with a contract value of Rs. 158.82 crore. According to an exchange filing, the jail has a capacity for 1,026 inmates. The total contract value of Rs. 158.82 crore includes the GST. RPP has secured a contract worth Rs. 152.11 crore to build a new district jail in Jaunpur, Uttar Pradesh, using the EPC model. As of June 30, 2024, the company’s order book stood at Rs. 3,200 crore.

RPP quarter-to-quarter performance, net profit, and growth:

In the January to March quarter of the fiscal year 2023–24, RPP Infra Projects has demonstrated significant revenue growth for the fourth quarter of the fiscal year 2023–2024, with a 35.71% increase compared to the same period last year, reaching Rs 434.85 crore. On a quarterly basis, revenues soared by 27.68 percent compared to the preceding three months. The company experienced a decline in net profit, which decreased by 14.99 percent from the previous year to Rs 13.61 crore in Q4FY24. The net profits of the company decreased by 15.52 percent sequentially when compared to the previous quarter.

12% jump in stock price for RPP:

Shares of RPP Infra Projects were trading 12% higher yesterday at Rs. 160.55. The stock currently has a market capitalization of over Rs. 600 crore. The stock has risen just over 30% so far in 2024, including yesterday’s move. Over the last 12 months, the stock has more than doubled in value, rising 165%. Today, the stock is trading at Rs. 176, which is 6% up today, with the highest trade so far at 184.90.

Conclusion: RPP is securing contact projects, which will enhance market valuation according to their EPC model and boost the company’s revenue.

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

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