RPP Infra upper circuit: RPP Infra Projects share price jumps 5% on ₹94-crore order win

RPP Infra Projects share price locked in 5% upper circuit limit, reaching ₹110 apiece during early trading on Tuesday. This substantial increase followed the company's recent acquisition of new contracts worth ₹94.13 crore.

According to an exchange filing made on Monday, RPP Infra Projects disclosed that it had secured a letter of acceptance from the State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT). The contract entails the formation of northern, western, and eastern side internal roads (10.20 M & 30 M wide), the construction of RCC drains, RCC culverts, minor bridges, providing pipe causeway, and street light arrangements in SIPCOT Industrial Park, Shoolagiri, Hosur Phase IV.

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Previously, in December, the company had received a letter of acceptance for three new orders. These included the construction of integrated storm water drain works in M1 & M2 components in the expanded areas of Greater Chennai Corporation Package 4, encompassing various streets in zone 12 & 14, with a contract price of ₹70.50 crore. Additionally, Package 5, covering various streets of zone 12 & 14, was contracted for ₹53.17 crore, and Package 8, covering various streets of zone 14, was contracted for ₹59.92 crore. 

RPP is one of the leading and rapidly growing integrated EPC companies in India, with a well-diversified presence in highways, roads, and bridges, civil construction (water management), irrigation, mass & affordable housing, and power projects.

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From April 2023 to January 2024, the company's shares surged from ₹39.80 to ₹146.30, marking a significant 267% increase. However, in February, profit booking occurred, resulting in a 27% correction. Nonetheless, over the past year, the stock has maintained a substantial gain of 178%.

The government’s continuous spending on infrastructure development, including on roads and highways, mass housing, water and irrigation, and power projects, continues to be a major growth driver for the company.

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