RPP Infra Projects Ltd Q2 FY25 – Roads, Orders, and a Rollercoaster Balance Sheet: The ₹2,994 Cr Order Book Marathon Nobody Saw Coming
1. At a Glance
If the Indian infrastructure universe had its own version of “Kaun Banega Crorepati,” RPP Infra Projects Ltd would be the contestant sitting in the hot seat, clutching a ₹2,994 crore order book like it’s Amitabh Bachchan’s hand of blessing. Priced at ₹104 a share (28 Nov close), this ₹518 crore market cap EPC warrior is trading at a P/E of just 9.3x — cheaper than a filter coffee in an airport lounge. The stock has tumbled nearly 48% over the last year, probably because Mr. Market doesn’t appreciate contractors who build roads faster than they build narratives.
Despite that, the company flaunts a ROCE of 20.1% and ROE of 13.9%, flexing operational efficiency that would make even its bigger peers blink. But hey, a 26.8% promoter pledge is the pothole in this otherwise well-tarred story. With a quarterly revenue of ₹317 crore and profit of ₹14 crore in Q2 FY25, RPP Infra’s financial highway has a few speed breakers — but the headlights are on full beam.
2. Introduction
If infrastructure stocks were Bollywood characters, RPP Infra would be the underrated Nawazuddin Siddiqui of the lot — gritty, relentless, and occasionally misunderstood by the audience. The company has been around since 1995, laying roads, building dams, handling irrigation, and lately, even flirting with data centers and logistics parks. It’s not glamorous, but it’s the kind of company that quietly gets India from point A to point B — literally.
In an industry filled with giants like L&T, IRB Infra, and NBCC flexing their cranes, RPP Infra is the plucky small-cap that refuses to be rolled over. And unlike some of its flamboyant peers, RPP doesn’t waste time on glossy PPTs — it prefers pouring concrete.
Still, the recent stock crash — nearly 34% in 3 months — has investors clutching their calculators. But peel back the dust, and you’ll see a company that’s pulled off a five-year profit CAGR of 29.6% and sales CAGR of 19.1%. Not bad for a firm whose projects range from Tamil Nadu’s roads to Sri Lanka’s high-rises.
3. Business Model – WTF Do They Even Do?
RPP Infra Projects Limited is basically India’s civil engineer on call. The company operates as a full-stack EPC (Engineering, Procurement, and Construction) player, which in plain English means: “We’ll design it, build it, and finish it — just pay us on time, please.”
Its business is sliced into three main divisions:
Infrastructure (60% of FY24 revenue): This is the bread-and-butter — roads, bridges, elevated corridors, and smart city projects. Think of it as the “masala dosa” of the EPC world — reliable, widely loved, and always in demand.
Water Management (30% of FY24 revenue): Jal Jeevan Mission, water supply, irrigation modernisation — basically, the company is making sure people have enough water to curse their government when roads flood.
Buildings and Others (10%): From affordable housing to hospitals and colleges, RPP has its fingers in every construction pie that smells of cement and budget overruns.
Clientele includes the usual Indian infrastructure Avengers: NTPC, L&T, CPCL, TNPL, Siemens, and APGENCO. Add to that a shiny Sri Lankan project — “Legend 96” worth ₹764 crore, because what’s an infra player without at least one international adventure?
4. Financials Overview
Let’s crunch the Q2 FY25 numbers — and no, you don’t need a degree from ICAI to follow along.
Metric
Latest Qtr (Sep ’25)
YoY Qtr (Sep ’24)
Prev Qtr (Jun ’25)
YoY %
QoQ %
Revenue
₹317 Cr
₹394 Cr
₹347 Cr
-19.6%
-8.7%
EBITDA
₹20 Cr
₹24 Cr
₹19 Cr
-16.7%
+5.3%
PAT
₹14 Cr
₹19 Cr
₹11 Cr
-26.3%
+27.3%
EPS (₹)
2.79
3.82
2.19
-27.0%
+27.4%
Commentary: YoY growth hit a speed bump with a near 20% drop in revenue and a 26% drop in profit. But the QoQ rebound in PAT by 27% shows RPP’s resilience — a contractor’s equivalent of saying, “Boss, thoda delay hua, kaam chal raha hai.” The operating margin stood at ~6%, modest but improving. Annualised EPS sits around ₹11.16, giving the stock its P/E of ~9x — the value investor’s version of a clearance sale.
5. Valuation Discussion – Fair Value Range
Let’s get our calculators sweaty.
Method 1: P/E Approach EPS (TTM): ₹11.1 Industry P/E: ~19x RPP’s P/E: 9.3x Fair range = 10x–14x → ₹111–₹155
Method 2: EV/EBITDA EV = ₹579 Cr, EBITDA = ₹93 Cr → EV/EBITDA = 6.2x Peers trade around 10–12x. Fair range (8–10x) → ₹150–₹180
Method 3: DCF (Simplified) Assuming 10% growth, discount rate 12%, terminal growth 3%, and FCF margin 5%. Resulting fair value range → ₹120–₹160
🎯 Educational Fair Value Range: ₹110 – ₹160 per share
This fair value range is for educational purposes only and not investment advice. Use it like Google
