Multibagger RBM Infracon stock hits 5% upper circuit after securing ₹3,498 crore order from ONGC

Shares of RBM Infracon hit the 5 percent upper circuit limit today, reaching ₹800 per share, following the announcement of a major order. In a Friday exchange filing, the company disclosed that it had won a service order from Oil and Natural Gas Corporation (ONGC).

The order, valued at ₹3,498 crore, includes ₹3,371 crore for crude and ₹127 crore for gas at Nandej. 

“Order Dated 06-09-2024 and has a validity period of 15 years or 180 months from the effective date. We assure to achieve the requisite order before time,” the company said in its regulatory filing.

RBM Infracon specialises in construction, maintenance, and turnaround services to oil & gas refineries, petrochemicals, fertilisers, gas cracker plants, coal/gas/WHR-based power plants, chemicals, cement, sugar plants, paper plants, irrigation, and other allied sectors.

For the June-ending quarter, the company delivered a stellar performance, Total income nearly doubled by 98.17 percent year-over-year to ₹38.86 crore, reflecting strong demand and successful project execution.

EBITDA surged 237.05 percent to ₹4.79 crore, with margins expanding by 507 basis points to 12.31 percent. Profit After Tax (PAT) more than tripled, rising 248.86 percent to ₹33.29 crore, pushing the PAT margin up by 365 basis points to 8.46 percent. This exceptional performance boosted the EPS up 187.50 percent to ₹3.22.

The company expects continued growth driven by a robust order book, strategic initiatives, and favourable industry trends.

The company anticipates further operational efficiencies and project delivery improvements, which will likely result in even stronger financial performance in the coming quarters.

Wealth creator

Since its listing in January 2023, RBM Infracon's shares have followed a steady upward trajectory, consistently reaching new record highs each month.

Between July 2023 and February 2024, the stock skyrocketed 1,320 percent. Following this surge, the stock saw some profit-taking over the next five months. However, it resumed its rally in August, rising by 64.71 percent.

During the same month, the stock surpassed the ₹800 mark, hitting a new all-time high of ₹821.70 per share. So far in the current month, the stock has increased by 9 percent.

The substantial gains have been driven by consistent order wins and improved financial performance. As of the end of the June quarter, the general public holds a 40 percent stake in the company, while the promoters retain the remaining 60.5 percent stake, Trendlyne data showed. 

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