RPP Infra Projects Ltd. share price target

We met with the management of RPP Infra Projects (RPP). The key takeaways are: -i) RPP is a pure play EPC company with a presence in the infrastructure, waters management & building segment, ii) bagged order inflow of ~| 980 crore in YTDFY19E taking total order book to | 1665.1 crore, 3.35x FY18 revenues with majority of projects of short duration of 12-24 months, iii) it expects its revenues to grow at a CAGR of 30% in FY18-20E, iv) to maintain 13-14% EBITDA margin, iv) showed a marked improvement in its cash conversion cycle (CCC) from 147 days in FY15 to...

We recently met the management of RPP Infra Projects (RPP) a small cap (Rs5bn mcap) to get a broad sense of its business and industry prospects. RPP Infra Projects is one of the leading and rapidly growing integrated Engineering Procurement & Construction (EPC) companies with a well-diversified presence across various segments. The company has a large order book of ~Rs11.8bn spread across 3 main segments-Infrastructure (49%), Water Management (23%) and Buildings (28%). and has now upgraded to Rs1-1,3bn with a predominant presence in South India such as Karnataka, Tamil Nadu and Andhra Pradesh. This strategy has worked well for the...

Execution Capabilities Thrived First Half of FY2018 RPP Infra Projects Ltd registered revenues of INR 108 crores in Q2FY18 and INR 220 crores for HIFY18, citing the strong execution and order garnering capabilities in Construction, Infra and Water management verticals. The company managed to grow topline by 29% in H1FY18 compared to same period previous year, on strategically growing its order book across all its operational verticals in five major states Andhra Pradesh, Madhya Pradesh, Karnataka and Telangana, besides Tamil Nadu. The central and state governments have initiated various projects focused on the creation of...

Huge scope for new opportunities: RPP focuses on verticals like Civil Construction, Irrigation and water supply, and Roads projects. It's portfolio is 100% government oriented. We believe, it augurs well for the company backed by Govt's initiatives of new schemes (like AMRUT, JnNURM, PMAY, DRDA, PMGSY, Smart Cities Mission etc.) for urban development, irrigation and road development. This ensures revenue visibility with a consistent order inflow going forward. The company has presence in Andhra Pradesh, Karnataka, Telangana and has entered into Madhya Pradesh. Thus, it is spreading its wings in all fastest growing...

RPP Infra reported dismal results in Q3FY17 with minimal revenue growth of 7.9%/-8.7% YoY/ QoQ respectively to Rs 782mn. EBITDA stood at Rs.102mn with margin of 13.1%, YoY expansion of 154bps and QoQ contraction of ~213bps. Reported PAT was Rs.40mn with YoY/ QoQ...

RPP Infra reported robust results in Q4FY16 with a healthy margins by offsetting revenue de-growth of 21.6%/9.8% YoY/ QoQ respectively to Rs 654mn. The EBITDA margin expanded by 830bps/750 bps YoY/QoQ to...

Government initiatives, to provide sustainable growth prospects: Being the conscious strategy, the Company used to concentrate only on government projects till 2008. But post that it spread its wings into private...