RPP Infra Projects Receives 'Buy' Rating and Shows Strong Financial Performance

Sep 25 2024 06:36 PM IST
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RPP Infra Projects, a smallcap company in the construction and real estate industry, has received a 'Buy' rating from MarketsMojo on September 25, 2024. The company has shown consistent positive results for the past 6 quarters and has a low Debt to EBITDA ratio. However, it also has a low ROE and slow long-term growth potential.
RPP Infra Projects, a smallcap company in the construction and real estate industry, has recently received a 'Buy' rating from MarketsMOJO on September 25, 2024. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.14 times.

In addition, RPP Infra Projects has consistently shown positive results for the past 6 quarters. Its PBT LESS OI(Q) has grown by 122.0%, PAT(9M) has grown by 33.73%, and NET SALES(HY) has grown by 37.10%. These numbers indicate a strong financial performance by the company.

Technically, the stock is in a bullish range and has shown improvement since September 25, 2024. Multiple factors such as MACD, Bollinger Band, and KST are also bullish for the stock.

Moreover, with a ROE of 13.4 and a price to book value of 2.4, RPP Infra Projects is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 201.75%, while its profits have risen by 74.8%. This gives the company a PEG ratio of 0.5, indicating its market-beating performance in the long term as well as the near term.

However, there are some risks associated with investing in RPP Infra Projects. The company has a low ROE of 7.09%, indicating poor management efficiency and low profitability per unit of shareholders' funds. Additionally, its operating profit has only grown by an annual rate of 1.28% over the last 5 years, suggesting poor long-term growth potential.

Another risk factor is that despite being a smallcap company, domestic mutual funds hold only 0% of the company. This could mean that either they are not comfortable with the company's current price or they have not conducted in-depth research on the company.

In conclusion, RPP Infra Projects is a smallcap company with a strong financial performance and a bullish outlook. However, investors should also consider the risks associated with the company before making any investment decisions.
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