RPP Infra Projects (RPPInfra) has won an order from the Karnataka Slum Development Board under the government's Housing For All Scheme to build 795 low income home units in Mysore. The work is expected to be completed in 24 months.
RPP Infra, which is based in Tamil Nadu, focuses on niche and infra projects in roads, irrigation and buildings. The company's revenue stood at Rs.782 mn in Q3 FY17, with growth of 7.9% YoY, but falling by 8.7% QoQ on account of the November demonetization impacting orders and growth. The management noted that its current order book is around Rs. 7.8 bn, with an expectation of Rs. 3 bn additional orders - for projects where the company is an L1 bidder - by FY17. The company's share price is trending below its 50 day SMA, after its weaker than expected Q3 performance.
Among analysts, the view on RPP is cautious. BOB Capital Markets issued a HOLD on RPP Infra in February.