The shares of a microcap Infrastructure stock which is primarily engaged in the engineering, execution, testing, commissioning, operating & maintenance of mechanical and rotary equipment for oil & gas refineries, cement, fertilizers, Petrochemicals, Coal/Gas based power plants, etc with order book 16x its Market Cap are in focus.
Price Action
The shares of RBM Infracon Ltd, with a total market capitalization of Rs 307.54 Crore as of Friday, closed at Rs 304.4 per share, hitting a 5 percent upper circuit in today’s trading session. The shares of RBM Infracon Ltd generated a strong return of 480 percent since it was listed in January 2023. The stock is currently trading at a discount of 71 percent from its 52-week high of Rs 1049 per share.
Business Verticals
The company is mainly into three main segments, which are EPC, Oil & Gas Exploration, and Green Energy. Through its EPC vertical, it provides construction, O&M, and turnaround services for refineries, petrochemicals, fertilizers, cement, and other industries.
The company entered the clean energy sector in Q3FY25 by establishing RBM Green Energy Private Limited, a wholly owned subsidiary, to drive its growth in the green energy segment with a main focus on green hydrogen and solar energy.
Strong Client Base
The company is trusted by prominent industry leaders, including Reliance Industries Ltd, Adani Group, Kalpataru Projects International Ltd, Dalmia Bharat Ltd, ONGC Ltd, and others.
Order Book
As of Q3FY25, the company’s order book stood at Rs 4727.78 Crores, reflecting a robust 242 percent growth in the first 9 months of FY25. The company saw stability in the order book due to successful project completions with new orders offsetting completed projects.
It received a major order from ONGC for 15 years, valued at Rs 3,498 crore, including Rs 3,371 crore for crude and Rs 127 crore for gas at Nandej Oil & Gas Field in September 2024. The company took over the contract on January 17, 2025, which is well ahead of the timeline set by ONGC. The order book of RBM Infracon Ltd is around 16x its market capitalization of Rs 298.80 Crore.
Also read: Pharma Stock under ₹50 jumps after receiving order from Kuwait based company
Revenue Guidance
Management is targeting a Revenue of Rs 300-325 Crore by the end of FY25, with margins expected to remain around 9 to 10 percent. For FY26, management anticipates a revenue target of Rs 650- 700 Crore.
Key ratios
The company boasts a lower Net D/E ratio of 0.03, and their P/E ratio is 14.1, which is less than the industry average of 23.25. It has an ROE of 16.09 percent with an ROCE of 21.95 percent. The company has a strong 1-year CAGR for Revenue at 56 percent and Net Profits at 402 percent.
Financials
The company reported an increase of 95 percent YoY in Revenue from Operations from Rs 33.37 Crore in Q3FY24 to Rs 65.14 Crore in Q3FY25. Their Net Profits also rose by 37.6 percent YoY from Rs 4.87 Crore to Rs 6.7 over the same period.
About RBM Infracon Ltd
RBM Infracon Limited has expertise in EPC (Engineering, Procurement, and Construction) Contracts within Mechanical & Civil Engineering Construction Services and in Oil & Gas production. The company delivers comprehensive solutions tailored to a diverse range of industries, including refineries, jetties, petrochemicals, fertilizers, cement, power plants, Met-Coke manufacturing, and beyond.
Written By Adhvaitha Nayani
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