RPP Infra Acquires 120 Acres Near Chennai Airport for ₹75 Crore, Eyes Major Development

RPP Infra Projects Ltd today said it had agreed to the acquisition of 120 acres of land near the proposed new Chennai airport. The deal, which is worth around ₹75 crore, will be executed in phases, with the entire land to be registered by April 2025.

Well-situated near potential global industrial heavyweights such as Samsung and Hyundai, the land could be developed into a boon. RPP Infra is now looking at multiple options from logistics parks to warehousing to data centres as part of efforts to maximise value while aligning with the company’s longer-term growth strategies.

Established in 1995, RPP Infra was primarily involved in the construction of roads, buildings, and industrial structures and later diversified to include power, irrigation, and waste management in their portfolio. The Company is an incorporated integrated EPC company and has executed more than 200 projects in South India, Maharashtra, Madhya Pradesh, Uttar Pradesh and Chhattisgarh.

The revenue stream of the company mainly consists of infrastructure contributors (60% in FY24) followed by water management (30%) and buildings and others (10%). Clients amassing these multiple technologies include national behemoths like NTPC, L&T, CPCL, TNPL, Siemens & APGENCO.

RPP Infra has an order book of ₹2,994 crore for Q3 FY25 and a strategy to ensure short-term projects, less than 24 months and project size of less than ₹250 crore, which would be around an EBITDA margin of 12-13%.

On the business side, RPP Infra has shown solid growth. On March 24, 2025, Its stock was trading at ₹144.7 a share, 52-week high is ₹245.05 and a low is ₹106.95. The company’s market cap is ₹735 crore; the 1-year return is 34.73%, and the 3-year return is 220.49%.

It posted a revenue of ₹355.10 crore in Q3 FY25, which was a 9% growth on a YoY basis. Operating profit skyrocketed 138.98% on-year at ₹26.67 crore while PAT grew by 17.13% to ₹18.87 crore. Revenue in FY24 rose 30.09% to ₹1,353.41 crore, while net profit almost doubled to ₹57.20 crore.

Trading at a P/E ratio of 10.7, lower than the industry average of 20.6, RPP Infra looks like an economical investment. Its 22.6% ROCE and 14.47% ROE further make it a compelling investment candidate.

RPP Infra is one such small-cap stock worth keeping an eye on as it expands its footprint.