RPP Infra Projects Ltd. (RPPINFRA) AI Stock Analysis

• Market Cap: ₹4.21B
• Dividend Yield: 0.47%
• Average Volume (3M): 13.71K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.38
• Revenue Growth: -7.32%
• EPS Growth: -26.92%
• Country: IN
• Employees: 764
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 2.92
• Shares Outstanding: 49,580,517
• 10 Day Avg. Volume: 7,724
• 30 Day Avg. Volume: 13,713
• PEG Ratio: -3.17
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -11.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹89.00 ▼(-10.28% Downside)

RPP Infra Projects Ltd. has a mixed outlook. Strong financial performance with revenue growth and a stable balance sheet is offset by cash flow challenges and a bearish technical outlook. The stock's undervaluation offers potential upside, but the current market momentum suggests caution.

Positive Factors

Strong leverage position

Very low debt-to-equity and a ~55.6% equity ratio indicate durable balance-sheet strength, lowering refinancing and solvency risk. This financial flexibility supports bidding on large EPC contracts, cushions cyclicality in construction cycles and preserves capacity to fund capex or working capital needs.

Sustained revenue and gross margin

Multi-year top-line growth with a healthy gross margin signals consistent contract wins and pricing power on core civil works. Stable gross profitability provides a structural buffer for absorbing cost inflation and supports reinvestment in capabilities that sustain competitive execution over the medium term.

Diversified EPC business model

A broad EPC scope across roads, buildings and water creates diversified revenue streams and repeat client opportunities. End-to-end capabilities reduce reliance on single subcontractors, support cross-selling, and align the firm with long-term public infrastructure spending trends in India, aiding durable demand visibility.

Negative Factors

Weak cash generation in 2025

Negative free cash flow and a deterioration in operating cash conversion are structural red flags for a contractor: they increase reliance on external financing or advance payments to fund working capital. Over months this can constrain bidding capacity, raise financing costs, and limit ability to absorb project overruns.

EBIT margin compression

A near-halving of EBIT margin within a year points to worsening project-level profitability or higher overheads. Persisting margin compression reduces operating leverage, narrows cushions against cost shocks, and undermines sustainable cash flow generation critical for reinvestment and debt servicing over the medium term.

Earnings volatility

A roughly 27% decline in EPS growth signals volatile earnings quality, which can stem from project delays, cost overruns, or revenue mix shifts. Persistent EPS volatility complicates planning, weakens credit metrics over time, and reduces predictability of distributable cash for stakeholders and reinvestment needs.

RPP Infra Projects Ltd. Business Overview & Revenue Model

Company Description

R.P.P. Infra Projects Limited, together with its subsidiaries, engages in the construction and infrastructure development activities in India, Sri Lanka, Mauritius, and internationally. The company undertakes civil construction, building projects, and irrigation and water supply projects; and infrastructure construction works, including highways, roads and bridges, buildings, industrial structures, and power and irrigation projects, as well as hotels, hospitals, and educational institutions. It also provides infrastructure projects related consultancy services; and acts as a distributor, agent, trader, merchant, contractor, broker, and dealer in various merchandise and articles, including clearing agents, freight contractors, forwarding agents, licensing agents, and general brokers, as well as carries commercial business. The company was founded in 1988 and is based in Chennai, India.

How the Company Makes Money

RPP Infra Projects Ltd. generates revenue primarily through the execution of infrastructure construction projects, which are typically funded by government contracts and private sector investments. The company bids for and secures contracts for various construction projects, and its revenue is derived from project payments received upon achieving certain milestones or upon completion of projects. Key revenue streams include road and bridge construction, irrigation projects, and urban infrastructure development. Additionally, the company may also earn revenue from maintenance contracts and consultancy services related to infrastructure projects. Strategic partnerships with government agencies and private firms are crucial for securing contracts and expanding project opportunities, thereby enhancing its earnings potential.

RPP Infra Projects Ltd. Financial Statement Overview

Summary

RPP Infra Projects Ltd. shows strong revenue growth and a stable balance sheet, with a notable improvement in the debt-to-equity ratio. However, challenges in cash flow management, particularly negative free cash flow in 2025, and a decrease in EBIT margin highlight areas for improvement.

Income Statement

RPP Infra Projects Ltd. demonstrates a strong income statement with consistent revenue growth, notably a 6.36% increase from 2024 to 2025 and a 32.3% increase from 2023 to 2024. The gross profit margin stands at a healthy 11.44% for 2025. However, the EBIT margin decreased from 9.88% in 2024 to 5.67% in 2025, indicating a need for efficiency improvements. Net profit margin improved to 4.54% in 2025, reflecting better profitability.

Balance Sheet

The company's balance sheet is robust with a stable equity position. The debt-to-equity ratio improved to 0.08 in 2025, suggesting strong leverage management. Return on equity is moderate at 12.32%, up from 13.45% in 2024, indicating effective use of equity to generate profits. The equity ratio increased to 55.57% in 2025, showcasing a solid financial structure.

Cash Flow

The cash flow analysis reveals challenges with negative free cash flow in 2025, driven by significant capital expenditures. The operating cash flow to net income ratio turned negative, raising concerns about cash generation efficiency. However, the company managed positive free cash flow in previous years, indicating potential for recovery.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.42B	14.39B	13.53B	10.40B	8.02B	5.13B
Gross Profit	1.80B	1.65B	1.39B	1.37B	809.50M	683.70M
EBITDA	1.00B	1.07B	1.07B	641.80M	331.40M	471.90M
Net Income	603.00M	652.90M	572.00M	289.60M	53.60M	155.00M
Balance Sheet
Total Assets	0.00	9.53B	8.42B	7.80B	7.62B	6.34B
Cash, Cash Equivalents and Short-Term Investments	223.80M	223.80M	394.50M	377.80M	417.90M	168.60M
Total Debt	0.00	445.30M	409.90M	794.40M	938.70M	1.13B
Total Liabilities	-5.30B	4.24B	4.17B	4.15B	4.25B	3.47B
Stockholders Equity	5.30B	5.30B	4.25B	3.65B	3.37B	2.86B
Cash Flow
Free Cash Flow	0.00	-629.80M	324.60M	147.50M	109.60M	392.40M
Operating Cash Flow	0.00	-50.80M	442.60M	382.50M	325.80M	447.30M
Investing Cash Flow	0.00	-490.60M	-1.00M	-120.30M	-168.20M	-30.90M
Financing Cash Flow	0.00	370.90M	-424.80M	-302.30M	91.80M	68.90M

RPP Infra Projects Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 99.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RPPINFRA, the sentiment is Negative. The current price of 99.2 is above the 20-day moving average (MA) of 90.27, above the 50-day MA of 98.14, and below the 200-day MA of 126.25, indicating a bearish trend. The MACD of -4.26 indicates Positive momentum. The RSI at 30.65 is Neutral, neither overbought nor oversold. The STOCH value of 30.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RPPINFRA.

RPP Infra Projects Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VASCONEQ	61 Neutral	₹9.48B	6.50	―	―	3.46%	159.96%
RPPINFRA	60 Neutral	₹4.21B	6.85	―	0.47%	-7.32%	-26.92%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
GAYAPROJ	54 Neutral	₹2.30B	1.50	―	―	―	―
MAHEPC	54 Neutral	₹3.32B	23.43	―	―	17.09%	―
SADBHIN	44 Neutral	₹1.17B	-1.74	―	―	4.63%	67.17%
IL&FSENGG	40 Underperform	₹2.94B	-170.96	―	―	-6.13%	98.35%

RPP Infra Projects Ltd. Corporate Events

RPP Infra Projects Faces Prosecution for TDS Deposit Delay

RPP Infra Projects Ltd. has announced the receipt of an order sanctioning prosecution under the Income Tax Act, 1961, due to a delay in depositing tax deducted at source (TDS) for the financial year 2022-23. This delay was attributed to an internal coordination gap during a transition in the company’s compliance function. The company has initiated compounding proceedings with the Income Tax Department, emphasizing that the delay was inadvertent and not intended to withhold material information.

R.P.P. Infra Projects Announces Resignation of Key Managerial Personnel

R.P.P. Infra Projects Limited has announced the resignation of Mr. Shammi Prakash from his roles as Company Secretary, Compliance Officer, and Key Managerial Personnel, effective from December 5, 2025. The resignation is attributed to personal reasons, and Mr. Prakash has confirmed that there are no other material reasons for his departure. This change in key personnel may have implications for the company’s compliance and governance processes, as the roles he held are crucial for regulatory adherence and corporate governance.

RPP Infra Projects Ltd. Releases Q2 2025 Financial Results

RPP Infra Projects Ltd. announced the publication of its unaudited financial results for the second quarter and half-year ended September 30, 2025. The results were published in the newspapers Maalaimalar and Business Standard, reflecting the company’s compliance with the Companies Act 2013 and SEBI regulations. This announcement provides stakeholders with insights into the company’s financial performance and operational status, potentially impacting investor confidence and market positioning.