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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of RPP Infra Projects Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:43 pm

Market Cap 628 Cr.
Current Price 165
High / Low185/56.6
Stock P/E11.0
Book Value 112
Dividend Yield0.00 %
ROCE21.2 %
ROE14.5 %
Face Value 10.0
PEG Ratio0.45

Data Source: screener.in

Competitors of RPP Infra Projects Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Techindia Nirman Ltd 36.1 Cr. 24.646.0/9.35 8.200.00 %0.43 %3.35 % 10.0
Tarmat Ltd 167 Cr. 78.7154/57.4113 60.80.00 %1.45 %1.14 % 10.0
Tantia Constructions Ltd 740 Cr. 47.061.2/18.2 16.00.00 %1.19 %5.84 % 1.00
Supreme Infrastructure India Ltd 222 Cr. 86.3117/20.8 1,8950.00 %%% 10.0
Sumit Woods Ltd 249 Cr. 81.591.2/27.027.7 24.80.00 %13.6 %12.9 % 10.0
Industry Average10,336.77 Cr310.47217.39131.450.10%13.36%60.22%6.50

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales124173226278233256246306243372326412
Expenses113164212294223249236294230344315407
Operating Profit111014-1610711111328115
OPM %9%6%6%-6%4%3%4%4%6%8%3%1%
Other Income271423615661523
Interest566-334523333
Depreciation222322232224
Profit before tax697-1164102115292120
Tax %47%23%36%16%44%52%27%24%29%41%22%31%
Net Profit375-94281610171614
EPS in Rs0.891.761.25-2.570.980.472.054.312.814.494.253.59

Last Updated: July 11, 2024, 7:37 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 9:03 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2602402663143664995816005138021,0401,353
Expenses2202042302683184345195444777769961,296
Operating Profit403636464865625636254457
OPM %15%15%13%15%13%13%11%9%7%3%4%4%
Other Income36105469811142450
Interest171717201719242319201712
Depreciation10875576768911
Profit before tax161821263045403422114284
Tax %29%23%22%27%25%74%42%46%30%52%31%32%
Net Profit11141719231223181652957
EPS in Rs3.143.864.585.306.303.216.475.024.101.467.8015.08
Dividend Payout %10%8%7%6%5%10%-0%-0%-0%-0%-0%-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)27.27%21.43%11.76%21.05%-47.83%91.67%-21.74%-11.11%-68.75%480.00%96.55%
Change in YoY Net Profit Growth (%)0.00%-5.84%-9.66%9.29%-68.88%139.49%-113.41%10.63%-57.64%548.75%-383.45%

Growth

Compounded Sales Growth
10 Years:19%
5 Years:18%
3 Years:38%
TTM:30%
Compounded Profit Growth
10 Years:15%
5 Years:20%
3 Years:54%
TTM:115%
Stock Price CAGR
10 Years:11%
5 Years:15%
3 Years:34%
1 Year:174%
Return on Equity
10 Years:8%
5 Years:8%
3 Years:8%
Last Year:15%

Last Updated: July 25, 2024, 7:44 am

Balance Sheet

Last Updated: July 10, 2024, 9:03 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital232323232323232324373738
Reserves97133148164186197219239256300325388
Borrowings10097110819814512997113947941
Other Liabilities6354137124178162235230241331338376
Total Liabilities283306418392484527605589634762780842
Fixed Assets484739262931524847626767
CWIP133440644320
Investments000000000000
Other Assets234256375362451496546536582697710775
Total Assets283306418392484527605589634762780842

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -21819373470-295852333844
Cash from Investing Activity -5015-7-3-311-3-17-12-0
Cash from Financing Activity -6-20-18-31-12-1616-5579-30-42
Net Cash Flow-13-22111552-4435525-42

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-60.00-61.00-74.00-35.00-50.00-80.00-67.00-41.00-77.00-69.00-35.0016.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days146151142259195237881081001119966
Inventory Days434101516405557343619
Days Payable255175116729392503187354270390234119
Cash Conversion Cycle-105-2130-460-182-250-59-190-113-245-99-34
Working Capital Days14020026525021820912315614416111890
ROCE %16%15%12%16%16%19%18%15%11%8%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters55.30%55.25%51.29%51.29%51.29%51.29%51.29%51.29%51.29%50.88%50.88%50.88%
FIIs0.14%0.23%0.53%0.26%0.06%0.06%0.06%0.39%0.79%0.84%0.49%0.49%
DIIs1.68%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Government0.00%0.00%0.03%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public42.87%44.52%48.16%48.46%48.65%48.65%48.65%48.32%47.93%48.29%48.64%48.62%
No. of Shareholders24,77624,48825,21424,58324,15323,59624,48623,43724,04520,94420,89722,812

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)15.078.941.696.558.04
Diluted EPS (Rs.)15.078.941.696.558.04
Cash EPS (Rs.)17.8910.163.639.1411.20
Book Value[Excl.RevalReserv]/Share (Rs.)112.1196.6691.76120.11114.75
Book Value[Incl.RevalReserv]/Share (Rs.)112.1197.1191.76121.12115.81
Revenue From Operations / Share (Rs.)356.63277.72218.50216.96265.50
PBDIT / Share (Rs.)28.1917.139.0319.9528.10
PBIT / Share (Rs.)25.3714.706.8617.3624.93
PBT / Share (Rs.)22.2011.143.059.3514.89
Net Profit / Share (Rs.)15.077.731.466.558.04
NP After MI And SOA / Share (Rs.)15.077.741.466.558.04
PBDIT Margin (%)7.906.164.139.1910.58
PBIT Margin (%)7.115.293.138.009.38
PBT Margin (%)6.224.011.394.315.60
Net Profit Margin (%)4.222.780.663.023.02
NP After MI And SOA Margin (%)4.222.780.663.023.02
Return on Networth / Equity (%)13.448.001.595.457.00
Return on Capital Employeed (%)21.4413.766.8111.6818.95
Return On Assets (%)6.793.710.702.443.08
Long Term Debt / Equity (X)0.040.080.090.200.13
Total Debt / Equity (X)0.090.210.270.350.32
Asset Turnover Ratio (%)1.671.351.140.790.98
Current Ratio (X)1.751.651.612.011.82
Quick Ratio (X)1.701.601.561.971.74
Inventory Turnover Ratio (X)16.4318.3312.536.866.99
Interest Coverage Ratio (X)8.904.812.372.492.80
Interest Coverage Ratio (Post Tax) (X)5.763.171.381.821.80
Enterprise Value (Cr.)412.92190.05203.04127.44101.45
EV / Net Operating Revenue (X)0.300.180.250.240.16
EV / EBITDA (X)3.862.966.132.701.60
MarketCap / Net Operating Revenue (X)0.300.140.180.260.11
Price / BV (X)0.960.400.440.470.26
Price / Net Operating Revenue (X)0.300.140.180.260.11
EarningsYield0.130.190.030.110.26

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 182.21

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 10.43% compared to the current price 165

Intrinsic Value: 227.05

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 37.61% compared to the current price 165

Last 5 Year EPS CAGR: 24.61%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -144.00, which is a positive sign.
  2. The company has higher reserves (221.00 cr) compared to borrowings (98.67 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (370.25 cr) and profit (32.42 cr) over the years.
  1. The stock has a low average ROCE of 13.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 172.83, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in RPP Infra Projects Ltd:
    1. Net Profit Margin: 4.22%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 21.44% (Industry Average ROCE: 13.36%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✗ ROE%: 13.44% (Industry Average ROE: 60.22%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 5.76
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.70
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 11.0 (Industry average Stock P/E: 217.39)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.09
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

RPP Infra Projects Ltd. is a Public Limited Listed company incorporated on 04/05/1995 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L45201TZ1995PLC006113 and registration number is 006113. Currently Company is involved in the business activities of Construction of waterways, harbours and river works, dredging of waterways. Company’s Total Operating Revenue is Rs. 779.82 Cr. and Equity Capital is Rs. 36.69 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Construction, Contracting & EngineeringS F No. 454, Raghupathynaiken Palayam, Erode Tamil Nadu 638002secretary@rppipl.com
http://www.rppipl.com
Management
NamePosition Held
Mr. P ArulsundaramChairman & Managing Director
Mrs. A NithyaWhole Time Director
Mr. P MuralidasanNon Executive Director
Mr. K RangasamyIndependent Director
Mr. P R SundararajanIndependent Director
Mr. R KalaimonyIndependent Director
Mr. ThangavelIndependent Director

FAQ

What is the latest fair value of RPP Infra Projects Ltd?

The latest fair value of RPP Infra Projects Ltd is ₹182.21.

What is the Market Cap of RPP Infra Projects Ltd?

The Market Cap of RPP Infra Projects Ltd is 628 Cr..

What is the current Stock Price of RPP Infra Projects Ltd as on 25 July 2024?

The current stock price of RPP Infra Projects Ltd as on 25 July 2024 is 165.

What is the High / Low of RPP Infra Projects Ltd stocks in FY 2024?

In FY 2024, the High / Low of RPP Infra Projects Ltd stocks is 185/56.6.

What is the Stock P/E of RPP Infra Projects Ltd?

The Stock P/E of RPP Infra Projects Ltd is 11.0.

What is the Book Value of RPP Infra Projects Ltd?

The Book Value of RPP Infra Projects Ltd is 112.

What is the Dividend Yield of RPP Infra Projects Ltd?

The Dividend Yield of RPP Infra Projects Ltd is 0.00 %.

What is the ROCE of RPP Infra Projects Ltd?

The ROCE of RPP Infra Projects Ltd is 21.2 %.

What is the ROE of RPP Infra Projects Ltd?

The ROE of RPP Infra Projects Ltd is 14.5 %.

What is the Face Value of RPP Infra Projects Ltd?

The Face Value of RPP Infra Projects Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in RPP Infra Projects Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE