Om Infra Ltd vs RPP Infra Projects Ltd – Best Infrastructure Stocks

Company Overview of RPP Infra Projects Ltd

R.P.P Infra Projects Limited, an India-based company, specializes in construction projects within various infrastructure sectors such as roads, buildings, industrial structures, power, irrigation and water management. The company undertakes projects in several states, including Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Telangana, Madhya Pradesh, Maharashtra, Andaman and Nicobar, Jharkhand and Uttar Pradesh. 

It operates through three segments: Roads, Urban Infrastructure and Irrigation and River Linking. The Roads segment encompasses projects like Bharat mala, Pradhan Mantri Gram Sadak Yojana, the four-laning of national highways and upgrading state highways to national highways.

Company Overview of Om Infra Ltd

Om Infra Limited is a company based in India that is involved in various business activities, including hydro mechanical equipment, steel fabrication solutions, hydro power projects, real estate development, entertainment centers and hotels. The company has different segments, such as Engineering, Real Estate and Others. 

The Engineering segment focuses on products like hydro-mechanical equipment, gates, hoists and turnkey solutions. The Real Estate segment deals with projects such as hotels, multiplexes, IT parks and residential and commercial developments. 

The Stock Performance of RPP Infra Projects Limited

The table below displays the month-by-month stock performance of RPP Infra Projects Ltd for the past year.

The Stock Performance of Om Infra Limited

The table below displays the month-by-month stock performance of Om Infra Ltd for the past year.

Fundamental Analysis of RPP Infra Projects Ltd

RPP Infra Projects Ltd is a prominent player in the construction sector, specializing in infrastructure development across various domains. Established with a vision to contribute to the nation’s growth, the company engages in projects that include roads, bridges and urban infrastructure. Their commitment to quality and timely delivery has positioned them as a trusted name in the industry.   

The stock is priced at ₹137.27 with a market capitalization of ₹511.84 crore. It has returned 33.92% over the past year, with -36.11% in the last 6 months. The 5-year CAGR is 39.06% and it is 85.98% away from its 52-week high. The 5-year average net profit margin is 2.68%.

• Close Price ( ₹ ): 137.27
• Market Cap ( Cr ): 511.84 
• 1Y Return %: 33.92
• 6M Return %: -36.11
• 1M Return %: -14.94
• 5Y CAGR %: 39.06
• % Away From 52W High: 85.98
• 5Y Avg Net Profit Margin %: 2.68 

Fundamental Analysis of Om Infra

Om Infra is a dynamic company specializing in innovative solutions for the infrastructure sector. With a strong commitment to quality and sustainability, Om Infra focuses on delivering advanced materials and technologies that enhance the durability and efficiency of construction projects. Their expert team works diligently to meet the unique needs of various clients, ensuring that each project is tailored to specific requirements.   

The stock is priced at ₹114.55, with a market capitalization of ₹1,137.73 crore and a dividend yield of 0.42%. It has returned -7.55% over the past year, with -36.39% in the last 6 months. The 5-year CAGR is 52.04% and it is 98.95% away from its 52-week high. The 5-year average net profit margin is 4.80%.

• Close Price ( ₹ ): 114.55
• Market Cap ( Cr ): 1137.73
• Dividend Yield %: 0.42
• 1Y Return %: -7.55
• 6M Return %: -36.39
• 1M Return %: 5.48
• 5Y CAGR %: 52.04
• % Away From 52W High: 98.95
• 5Y Avg Net Profit Margin %: 4.80 

Financial Comparison of RPP Infra Projects and Om Infra

The table below shows a financial comparison of RPP Infra Projects Ltd and Om Infra Ltd.

Points to be noted:

• (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
• PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
• PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
• Net Income: This represents the company’s total profit after all expenses, including taxes and interest, are deducted.
• EPS (Earnings Per Share): This shows the portion of a company’s profit allocated to each outstanding share of stock.
• DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
• Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.

Dividend of RPP Infra Projects and Om Infra

SRPP Infra Projects and Om Infra both offer consistent dividends, with payouts ranging from ₹0.2 to ₹1 over the years. This shows the company’s commitment to rewarding shareholders despite market fluctuations. Check the table for complete details.

Advantages and Disadvantages of Investing in RPP Infra Projects Limited

RPP Infra Projects Ltd

The primary advantage of RPP Infra Projects Ltd. is its strong focus on infrastructure development, particularly in the road, water supply and urban infrastructure sectors. This specialization provides the company with steady growth opportunities and a diverse project portfolio.

1. Diverse Infrastructure Portfolio: RPP Infra Projects is involved in various sectors, including roads, bridges and water supply projects. This diverse portfolio allows the company to reduce its reliance on a single industry and tap into multiple growth areas, ensuring long-term stability.
   
2. Government Contracts: The company secures a significant portion of its revenue through government contracts. These contracts offer stability and recurring business, as they often span multiple years and provide opportunities for expansion in public infrastructure projects.
   
3. Strong Project Execution Capabilities: RPP Infra Projects has established a strong track record of successfully executing large-scale infrastructure projects. Its ability to manage complex projects efficiently ensures timely delivery and enhances its reputation for reliability and quality in the market.
   
4. Consistent Financial Performance: The company has demonstrated consistent revenue growth, driven by its diverse project portfolio and strong order book. This steady financial performance provides a stable foundation for future investments and enables the company to reinvest in new expansion opportunities.
   
5. Focus on Sustainable Practices: RPP Infra Projects is committed to incorporating sustainable practices in its operations. By focusing on eco-friendly solutions and complying with environmental regulations, the company enhances its long-term growth prospects and strengthens its reputation among clients and stakeholders.

The main disadvantage of RPP Infra Projects Ltd. lies in its reliance on government contracts, which exposes the company to risks from policy changes, regulatory delays and potential changes in government spending, all of which can affect project timelines and revenue.

1. Reliance on Government Contracts: RPP Infra Projects derives a significant portion of its revenue from government contracts. While these contracts provide stability, any changes in government priorities or budget cuts can delay or cancel projects, affecting the company’s financial stability and growth prospects.
   
2. Execution and Timing Risks: The company faces risks related to the timely execution of large infrastructure projects. Delays in receiving approvals, weather-related challenges, or unforeseen circumstances can extend timelines, increasing costs and reducing profitability, which may affect investor confidence.
   
3. Exposure to Regulatory Changes: As a company involved in infrastructure projects, RPP Infra Projects is subject to strict regulations and policy changes. Any sudden alterations in environmental or labor laws can lead to increased compliance costs or project delays, affecting the company’s operations.
   
4. High Competition: The infrastructure sector is highly competitive, with many players bidding for similar government contracts. RPP Infra Projects must manage cost efficiency and maintain strong relationships with clients to secure contracts, which can be challenging due to pricing pressures and increasing competition.
   
5. Fluctuating Raw Material Costs: RPP Infra Projects is exposed to price volatility in raw materials like cement, steel and other construction materials. Fluctuations in these costs can increase project expenses and reduce profitability, particularly if these increases cannot be passed on to clients.

Advantages and Disadvantages of Investing in Om Infra

Om Infra Ltd

The primary advantage of Om Infra Ltd. is its specialization in infrastructure development, particularly in the sectors of road construction, urban development and industrial projects. This focus allows the company to deliver tailored, high-quality solutions and build a strong market presence.

1. Focused Infrastructure Development: Om Infra Ltd. specializes in road construction and urban infrastructure projects. This focus helps the company leverage its expertise to efficiently handle large-scale projects, ensuring timely delivery and consistent growth in the competitive infrastructure market.
   
2. Diverse Project Portfolio: Om Infra operates across various sectors, including roads, water supply and industrial construction. This diverse portfolio provides the company with multiple revenue streams, mitigating risks associated with dependence on a single sector and allowing for broader market opportunities.
   
3. Strong Market Reputation: With years of experience in the infrastructure sector, Om Infra has developed a strong reputation for quality and reliability. This reputation helps attract high-value clients, secure government contracts and establish long-term business relationships, contributing to its consistent growth.
   
4. Experienced Management Team: The company’s leadership team has a proven track record in executing large infrastructure projects. Their expertise in project management, cost control and risk mitigation ensures that Om Infra remains competitive and capable of handling complex projects effectively.
   
5. Government Contracts and Partnerships: A significant portion of Om Infra’s business comes from government contracts, particularly in road construction and urban development. These contracts provide the company with a steady stream of revenue and the opportunity for long-term growth through public sector projects.
   

The main disadvantage of Om Infra Ltd. is its heavy reliance on government contracts, which exposes the company to risks associated with policy changes, delays in approvals and fluctuations in government spending, potentially impacting revenue streams.

1. Dependence on Government Contracts: Om Infra Ltd. secures a large portion of its revenue from government projects. Any delays in project approvals, changes in government policies, or budget cuts can affect the company’s cash flow, making it vulnerable to political and economic shifts.
   
2. Execution Risks in Infrastructure Projects: Infrastructure projects are complex and subject to unforeseen delays due to regulatory issues, material shortages, or labor disputes. Om Infra faces risks associated with meeting deadlines and controlling costs, which can lead to lower profit margins.
   
3. Competition in the Infrastructure Sector: The infrastructure industry is highly competitive, with numerous players bidding for similar contracts. Om Infra must maintain cost efficiency, quality and innovation to remain competitive, which can pressure profit margins and make it harder to secure large projects.
   
4. Fluctuating Raw Material Costs: Om Infra Ltd. is exposed to fluctuations in the prices of raw materials, such as cement and steel. Increases in these material costs can erode project margins, especially when contracts are fixed-price, impacting the company’s profitability.
   
5. Vulnerability to Economic Downturns: Infrastructure projects are often the first to be delayed or canceled during economic downturns. Om Infra is exposed to cyclical economic risks that can reduce demand for new construction, affecting its growth prospects and overall financial performance.

How to Invest in Om Infra and RPP Infra Projects Stocks?

If you’re interested in investing in Om Infra and RPP Infra Projects Stocks, you can do so effortlessly through Alice Blue, which offers zero brokerage on equity delivery trades, allowing you to purchase stocks without any additional charges.

Step 1: Open a Demat & Trading Account

• Visit the Alice Blue website.
• Click on “Open Demat Account” and complete the registration process.
• Upload your PAN, Aadhaar and bank details for verification.

Step 2: Fund Your Trading Account

• Log in to Alice Blue and navigate to the Funds section.
• Deposit money using UPI, Net Banking, or NEFT/RTGS for seamless transactions.

Step 3: Search & Analyze Om Infra and RPP Infra Projects Stocks

• Use the search bar to find Om Infra and RPP Infra Projects Stocks.
• Review the stock’s market price, charts and company insights before making a decision.

Step 4: Place Your Buy Order

• Click “Buy” and select either a Market Order (instant purchase) or a Limit Order (buy at a specified price).
• Enter the quantity and confirm your order to complete the purchase.

RPP Infra Projects vs. Om Infra Limited- Conclusion

RPP Infra specializes in infrastructure development, particularly in road and water supply projects. While it has a strong order book and a solid reputation, its heavy reliance on government contracts and exposure to regulatory risks can affect its growth and stability.

Om Infra focuses on road construction and urban development, with a diverse project portfolio that provides steady growth opportunities. However, its dependence on government contracts, market competition and execution risks may impact its financial performance and long-term stability.

RPP Infra Projects vs. Om Infra – FAQ

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.