NSEI:RPPINFRA

Stock Analysis Report

Executive Summary

R.P.P. Infra Projects Limited, together with its subsidiaries, engages in the construction and infrastructure development activities in India, Sri Lanka, Mauritius, and Gabon.

Rewards

PE ratio (10.7x) is below the Indian market (12.9x)

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Does not have a meaningful market cap (₹2B)



Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has R.P.P. Infra Projects's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RPPINFRA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.7%

RPPINFRA

-3.1%

IN Construction

-2.4%

IN Market


1 Year Return

-31.8%

RPPINFRA

-6.7%

IN Construction

6.8%

IN Market

Return vs Industry: RPPINFRA underperformed the Indian Construction industry which returned -6.7% over the past year.

Return vs Market: RPPINFRA underperformed the Indian Market which returned 6.8% over the past year.


Shareholder returns

RPPINFRAIndustryMarket
7 Day-6.7%-3.1%-2.4%
30 Day-19.8%-8.6%-0.6%
90 Day-19.5%-5.4%7.2%
1 Year-31.8%-31.8%-5.5%-6.7%8.9%6.8%
3 Year-59.8%-59.9%22.0%17.6%31.8%24.8%
5 Year-37.8%-38.6%23.8%16.9%40.3%27.8%

Price Volatility Vs. Market

How volatile is R.P.P. Infra Projects's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is R.P.P. Infra Projects undervalued compared to its fair value and its price relative to the market?

10.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RPPINFRA (₹73.95) is trading above our estimate of fair value (₹67.27)

Significantly Below Fair Value: RPPINFRA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RPPINFRA is good value based on its PE Ratio (10.7x) compared to the Construction industry average (11.4x).

PE vs Market: RPPINFRA is good value based on its PE Ratio (10.7x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RPPINFRA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RPPINFRA is good value based on its PB Ratio (0.7x) compared to the IN Construction industry average (0.7x).


Next Steps

Future Growth

How is R.P.P. Infra Projects forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as R.P.P. Infra Projects has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has R.P.P. Infra Projects performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RPPINFRA has high quality earnings.

Growing Profit Margin: RPPINFRA's current net profit margins (2.6%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: RPPINFRA's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: RPPINFRA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RPPINFRA had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the Construction industry average (5.7%).


Return on Equity

High ROE: RPPINFRA's Return on Equity (6.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is R.P.P. Infra Projects's financial position?


Financial Position Analysis

Short Term Liabilities: RPPINFRA's short term assets (₹5.6B) exceed its short term liabilities (₹3.0B).

Long Term Liabilities: RPPINFRA's short term assets (₹5.6B) exceed its long term liabilities (₹770.6M).


Debt to Equity History and Analysis

Debt Level: RPPINFRA's debt to equity ratio (54.3%) is considered high.

Reducing Debt: RPPINFRA's debt to equity ratio has reduced from 61% to 54.3% over the past 5 years.

Debt Coverage: RPPINFRA's debt is well covered by operating cash flow (33.2%).

Interest Coverage: RPPINFRA's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: RPPINFRA has a low level of unsold assets or inventory.

Debt Coverage by Assets: RPPINFRA's debt is covered by short term assets (assets are 4.1x debt).


Next Steps

Dividend

What is R.P.P. Infra Projects's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RPPINFRA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RPPINFRA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RPPINFRA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RPPINFRA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RPPINFRA is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RPPINFRA's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of R.P.P. Infra Projects's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

R. Arulsundaram (53yo)

13.8yrs

Tenure

₹8,833,000

Compensation

Mr. R. P. Arulsundaram has been the Chairman and Managing Director of R.P.P Infra Projects Limited since March 2006. Mr. Arulsundaram is the one who laid the platform of R.P.P Infra Projects Limited in the ...


CEO Compensation Analysis

Compensation vs Market: R.'s total compensation ($USD124.35K) is above average for companies of similar size in the Indian market ($USD33.67K).

Compensation vs Earnings: R.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.9yrs

Average Tenure

53yo

Average Age

Experienced Management: RPPINFRA's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

7.4yrs

Average Tenure

55yo

Average Age

Experienced Board: RPPINFRA's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • R. Arulsundaram (53yo)

    Chairman & MD

    • Tenure: 13.8yrs
    • Compensation: ₹8.83m
  • A. Nithya (46yo)

    CFO & Whole Time Director

    • Tenure: 20.8yrs
    • Compensation: ₹3.84m
  • S. Varadharajen (61yo)

    Head of Administrative

    • Tenure: 0yrs
  • P. Murugesan

    Chief Operating Officer

    • Tenure: 1.9yrs
  • A. Karthiswaran

    Company Secretary & Compliance Officer

    • Tenure: 0.3yrs
  • S. Arivananthan

    Deputy Manager of Accounts

    • Tenure: 0yrs

Board Members

  • R. Muralidasan (55yo)

    Non-Executive Director

    • Tenure: 11.7yrs
    • Compensation: ₹40.00k
  • R. Arulsundaram (53yo)

    Chairman & MD

    • Tenure: 13.8yrs
    • Compensation: ₹8.83m
  • A. Nithya (46yo)

    CFO & Whole Time Director

    • Tenure: 20.8yrs
    • Compensation: ₹3.84m
  • P. Sundararajan (61yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: ₹40.00k
  • K. Rangasamy (66yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: ₹40.00k
  • Ramasamy Kalaimony

    Additional Non Executive Independent Director

    • Tenure: 0.08yrs

Company Information

R.P.P. Infra Projects Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: R.P.P. Infra Projects Limited
  • Ticker: RPPINFRA
  • Exchange: NSEI
  • Founded: 1988
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹1.646b
  • Shares outstanding: 22.60m
  • Website: https://www.rppipl.com

Number of Employees


Location

  • R.P.P. Infra Projects Limited
  • MKM Chambers
  • No. 42, Third Floor
  • Chennai
  • Tamil Nadu
  • 600034
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RPPINFRANSEI (National Stock Exchange of India)YesEquity SharesININRDec 2010
533284BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2010

Biography

R.P.P. Infra Projects Limited, together with its subsidiaries, engages in the construction and infrastructure development activities in India, Sri Lanka, Mauritius, and Gabon. The company undertakes civil  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 12:55
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.