RPP Infra Projects Ltd. (RPPINFRA) AI Stock Analysis

• Market Cap: ₹3.59B
• Dividend Yield: 0.47%
• Average Volume (3M): 13.71K
• Price to Earnings (P/E): 186.3
• Beta (1Y): 1.46
• Revenue Growth: -7.32%
• EPS Growth: -26.92%
• Country: IN
• Employees: 764
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.14
• 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: 62 Neutral
• Price Target: ₹75.00 ▼(-24.40% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is supported primarily by solid financial performance (growth and low leverage) and reasonable valuation (low P/E), but is held back materially by weak technical trend signals and 2025 cash-flow pressure.

Positive Factors

Low leverage / strong balance sheet

Very low debt-to-equity (0.08) and an increased equity ratio provide durable financial flexibility for an EPC contractor. This reduces refinancing risk, supports bid capacity on large projects, and cushions working-capital swings typical in construction over the next several months.

Consistent multi-year revenue growth

Sustained revenue increases across consecutive years indicate the company can win and execute contracts across segments. This revenue momentum supports scale, backlog replenishment and operational continuity, underpinning medium-term cash generation potential if execution remains steady.

Healthy gross margin / durable EPC model

An 11.44% gross margin combined with an end-to-end EPC model signals persistent execution capabilities and pricing recognition in infrastructure projects. Multi-segment exposure (roads, buildings, water) diversifies revenue drivers and helps sustain margins over a 2-6 month horizon absent major contract losses.

Negative Factors

Negative free cash flow and weak operating cash conversion

Negative free cash flow and an operating-cash-to-net-income shortfall signal strained cash generation from core activities. For a working-capital intensive EPC firm, this can raise financing needs, increase reliance on equity/debt or slow growth investments, posing medium-term liquidity risk unless cash conversion improves.

Material EBIT margin compression

A sharp fall in EBIT margin reduces operating leverage and long-term profitability, suggesting cost inflation, pricing pressure, or execution inefficiencies. If margins remain compressed, return on capital will weaken and competitive flexibility to bid aggressively on new contracts will be impaired over coming months.

Significant EPS volatility / contraction

A large negative EPS growth rate highlights earnings volatility and potential one-off hits or margin swings. For investors and management planning, erratic earnings reduce predictability for reinvestment, dividend policy and credit metrics, elevating medium-term execution and financing risk.

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. primarily makes money by executing construction and infrastructure projects awarded under EPC/contracting arrangements. Revenue is recognized from contract receipts tied to project progress, typically through running account (RA) bills and milestone-based billing for work completed, with final settlements upon completion and handover. Key revenue streams generally include (1) civil and infrastructure construction services (the core EPC/contracting business), where earnings come from the contract value paid by clients for delivering specified scope; and (2) any ancillary receipts directly connected to project execution (e.g., variations/claims approved by the client, escalation clauses where applicable, and retention money released after defect-liability periods), though specific mechanisms depend on individual contracts. The company’s earnings are influenced by its ability to win tenders, execute projects within time and cost, manage subcontractors and material procurement, and maintain working-capital efficiency (since construction projects can involve significant up-front costs before cash collection). Specific named partnerships, customer concentration, or segment-wise revenue breakdowns are not available; null.

RPP Infra Projects Ltd. Financial Statement Overview

Summary

Strong revenue growth and a solid balance sheet with low leverage (debt-to-equity 0.08) support the score, but 2025 cash flow weakness (negative free cash flow and negative operating cash flow to net income) and a notable EBIT margin decline (9.88% to 5.67%) are key risks.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.65B	14.39B	13.53B	10.40B	8.02B	5.13B
Gross Profit	1.70B	1.65B	1.39B	1.37B	809.50M	683.70M
EBITDA	925.10M	1.07B	1.07B	641.80M	331.40M	471.90M
Net Income	552.00M	652.90M	572.00M	289.60M	53.60M	155.00M
Balance Sheet
Total Assets	9.80B	9.53B	8.42B	7.80B	7.62B	6.34B
Cash, Cash Equivalents and Short-Term Investments	3.93B	223.80M	394.50M	377.80M	417.90M	168.60M
Total Debt	1.01B	445.30M	409.90M	794.40M	938.70M	1.13B
Total Liabilities	4.26B	4.24B	4.17B	4.15B	4.25B	3.47B
Stockholders Equity	5.55B	5.30B	4.25B	3.65B	3.37B	2.86B
Cash Flow
Free Cash Flow	-353.10M	-629.80M	324.60M	147.50M	109.60M	392.40M
Operating Cash Flow	73.30M	-50.80M	442.60M	382.50M	325.80M	447.30M
Investing Cash Flow	-383.30M	-490.60M	-1.00M	-120.30M	-168.20M	-30.90M
Financing Cash Flow	483.90M	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: Negative
• 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 74.22, above the 50-day MA of 83.65, and below the 200-day MA of 114.36, indicating a bearish trend. The MACD of -4.46 indicates Negative momentum. The RSI at 38.43 is Neutral, neither overbought nor oversold. The STOCH value of 38.58 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
RPPINFRA	62 Neutral	₹3.59B	186.32	―	0.47%	-7.32%	-26.92%
VASCONEQ	61 Neutral	₹7.57B	27.62	―	―	3.46%	159.96%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
GAYAPROJ	54 Neutral	₹2.53B	0.03	―	―	―	―
MAHEPC	54 Neutral	₹3.22B	13.84	―	―	17.09%	―
SADBHIN	43 Neutral	₹1.01B	-0.31	―	―	4.63%	67.17%
IL&FSENGG	40 Underperform	₹3.16B	-220.62	―	―	-6.13%	98.35%