Synopsis:
RBM Infracom is in focus after securing an order worth Rs 32.06 crore from Indian Oil Corporation for the piping and structural work unit under the Lupech Project at IOCL’s Gujarat Refinery.
The shares of this company engaged in providing construction, maintenance, and turnaround services are in focus after securing a key order from IOC. In this article, we will dive more into the details.
With a market capitalization of Rs 432 crore, the shares of RBM Infracon Ltd made a day high of Rs 443.40 per share, up by 2 percent from its previous day closing price of Rs 435.45 per share. In the last one year, the stock has corrected by almost 50 percent, as compared to NIFTY 50’s positive return of 2.4 percent.
About the Order
RBM Infracon, through a stock exchange filing, announced that it has secured a new contract worth Rs 32.06 crore (inclusive of GST) from Indian Oil Corporation Ltd (Refineries Division) for piping and structural work under the Lupech Project at IOCL’s Gujarat Refinery in Vadodara.
The contract is scheduled for completion within the next six months. This newly acquired order is a great relief to RBM Infracon’s order book and is an indication of their expanded footprint in industrial infrastructure projects for big PSUs like IOCL.
In Q4 FY25, the company’s order book slightly decreased from Rs 4,728 crore at the beginning of the quarter to Rs 4,705 crore at the end. This shows that the company successfully executed a large part of its projects while keeping a healthy order pipeline.
Financial Highlights
The company’s revenue for Q4 FY25 came in at Rs 153 crore, registering a 168 percent growth from Rs 57 crore in the same quarter last year. Coming to its profitability, the company reported a net profit growth of 225 percent to Rs 13 crore in Q4 FY25 as compared to Rs 4 crore in Q4 FY24.
The stock has delivered a robust ROE and ROCE of 24.75 percent and 33 percent respectively, and is currently trading at a low P/E of 14.64x as compared to its industry P/E of 24.45x.
RBM Infracon Limited is a major engineering company that was established in 1993 and offers a full range of construction, maintenance, and turnaround services to the Oil & Gas, Fertilizers, Power, and Cement industries, among others.
For more than three decades, RBM Infracon has had a prestigious clientele, including Reliance Industries, Nayara Energy, TATA Projects, and Technip Energies. Being a company that is primarily committed to safety, quality, and on-time delivery, it is still able to efficiently execute complicated projects and, thus, maintain the trust of its clients over the long term.
Written by Satyajeet Mukherjee
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