Stock Performance and Market Context
On 20 Jan 2026, RPP Infra Projects Ltd recorded its lowest price in the last 52 weeks at Rs.87.6. Despite outperforming its sector by 2.51% on the day, the stock remains substantially below its 52-week high of Rs.190, representing a decline of over 53%. This drop contrasts sharply with the broader market, where the Sensex, although down by 0.3% today and on a three-week losing streak with a cumulative fall of 3.23%, remains only 3.81% shy of its own 52-week high of 86,159.02 points.
The stock’s current trading levels are below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. Notably, the stock has reversed its trend today after ten consecutive days of decline, but the overall trajectory remains subdued.
Financial Metrics and Fundamental Assessment
RPP Infra Projects Ltd’s financial indicators reveal several areas of concern that have contributed to the stock’s decline. The company’s long-term fundamental strength is considered weak, with an average Return on Capital Employed (ROCE) of 9.43%, which is modest for the construction sector. The half-year ROCE stands at 12.75%, the lowest recorded in recent periods, indicating limited efficiency in capital utilisation.
Operating profit growth has been sluggish, with an annualised increase of just 15.30% over the last five years. This growth rate falls short of expectations for a company in a sector typically characterised by cyclical expansion. Earnings per share (EPS) have also contracted sharply, with a fall of 22.91% reported in the September 2025 results, which were categorised as very negative.
Interest expenses have risen significantly, with the latest six-month figure at Rs.8.42 crores, reflecting a 40.80% increase. This escalation in interest costs has exerted additional pressure on profitability and cash flows. Operating cash flow for the year is at a low Rs.8.22 crores, underscoring constrained liquidity and operational cash generation.
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Shareholding and Valuation Considerations
Promoter shareholding dynamics have also contributed to the stock’s pressure. Approximately 26.77% of promoter shares are pledged, which can exert additional downward pressure on the stock price, especially in falling markets. This factor often raises concerns about potential forced selling or liquidity constraints within the promoter group.
From a valuation standpoint, the stock exhibits an Enterprise Value to Capital Employed ratio of 0.8, which is considered attractive. However, it trades at a premium relative to its peers’ average historical valuations, suggesting that the market may be pricing in risks or uncertainties specific to the company. Despite this premium, the stock’s profitability has declined by 14.8% over the past year, further complicating the valuation narrative.
Comparative Market Performance
RPP Infra Projects Ltd has underperformed the broader market significantly over the last year. While the BSE500 index has generated returns of 6.26% during this period, the stock has delivered a negative return of -51.63%. This stark contrast highlights the challenges faced by the company relative to its peers and the overall market environment.
The Sensex’s own performance, with a 7.68% gain over the past year, further emphasises the stock’s relative weakness. The divergence between the stock and benchmark indices underscores the specific pressures on RPP Infra Projects Ltd within the construction sector.
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Mojo Score and Ratings
RPP Infra Projects Ltd currently holds a Mojo Score of 12.0, which corresponds to a Strong Sell rating. This represents a downgrade from its previous Sell grade, which was revised on 3 Nov 2025. The Market Cap Grade stands at 4, reflecting the company’s relatively modest market capitalisation within its sector.
The Strong Sell rating is driven by the company’s weak long-term fundamentals, deteriorating profitability, and elevated financial costs. These factors collectively have contributed to the stock’s sustained downward trend and its recent 52-week low.
Sector and Industry Context
Operating within the construction industry, RPP Infra Projects Ltd faces sectoral headwinds that have affected many peers. The construction sector has experienced volatility due to fluctuating demand, input cost pressures, and broader economic uncertainties. While the Sensex and broader market indices have shown resilience, the company’s specific challenges have resulted in a performance lag relative to sector benchmarks.
Despite the current valuation metrics suggesting some attractiveness, the stock’s premium to peer valuations and the decline in profitability highlight the complexities investors face when assessing the company’s position within the sector.
Summary of Key Metrics
To summarise, the key financial and market metrics for RPP Infra Projects Ltd as of 20 Jan 2026 are:
- New 52-week low price: Rs.87.6
- 52-week high price: Rs.190
- One-year stock return: -51.63%
- Sensex one-year return: +7.68%
- Average ROCE (long term): 9.43%
- Half-year ROCE: 12.75%
- Operating profit growth (5 years annualised): 15.30%
- EPS decline (latest): -22.91%
- Interest expense growth (6 months): +40.80%
- Operating cash flow (yearly): Rs.8.22 crores
- Promoter share pledged: 26.77%
- Mojo Score: 12.0 (Strong Sell)
The combination of these factors has culminated in the stock’s recent price action and rating status.
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