Vishnu Prakash R Punglia Ltd. (VPRPL)
Value Pick : Best share to buy from Infrastructure space
Executive Summary
Vishnu Prakash R Punglia Ltd. (VPRPL) is one of India’s fastest-growing infrastructure companies, specializing in government projects. The company has a diverse portfolio spanning water supply, railway infrastructure, and road construction. With a robust order book, strategic backward integration, and geographical expansion, VPRPL is poised for sustained growth.
Key Metrics
Market Cap
₹3,231 Cr
Industry Avg: ₹3,000 Cr
Current Price
₹259
52-Week Range: ₹141 – ₹346
P/E Ratio
26.3
Industry Avg: 28.0
ROE
23.6%
Industry Avg: 21.0%
Business Overview
Core Operations
Water Supply Projects
Contributes ~60% of order book
Recent projects worth ₹342 Cr including water storage and treatment facilities
Railway Infrastructure
Accounts for ~30% of new orders
Includes bridges, platforms, and ancillary work
Road Construction
Contributes ~5% of revenue
Strategic importance for future growth
Geographical Presence
Operating in 10+ Indian states, including Rajasthan, Maharashtra, and Goa
Future Growth Drivers
Strong Order Book
- Total Orders: ₹5,086 Cr
- New Orders in H1 FY25: ₹1,104 Cr
- Average project duration: 36 months
- Bidding Pipeline: ₹5,000 Cr
Financial Performance
Q2 FY25 Highlights
| Metric | Value | YoY Growth |
|---|---|---|
| Revenue | ₹335 Cr | +13% |
| EBITDA | ₹49 Cr | +27% |
| PAT | ₹24 Cr | +12% |
H1 FY25 Performance
| Metric | Value | YoY Growth |
|---|---|---|
| Revenue | ₹591 Cr | +3% |
| EBITDA | ₹82 Cr | +16% |
| PAT | ₹39 Cr | +2% |
Valuation Estimate
Relative Valuation
| Metric | VPRPL | Industry Avg |
|---|---|---|
| P/E Ratio | 26.3 | 28.0 |
| P/B Ratio | 4.25 | 4.5 |
| EV/EBITDA | 11.5 | 12.0 |
DCF Valuation
Fair Value Estimate: ₹290 per share
Potential Upside: ~12%
Investment Thesis
Strengths
- Strong order book and high-margin segments focus
- Effective cost management through backward integration
- Strategic geographical expansion
- Attractive valuation entry point
Risk Factors
- Delayed payments from state governments
- Rising debt levels
- Economic and weather-related disruptions
Conclusion
VPRPL’s growth trajectory, combined with prudent cost management and strategic expansions, makes it a solid choice for long-term investors. At a current price of ₹259, the stock offers a reasonable entry point with an estimated fair value of ₹290.
Disclaimer: This report is for informational purposes only and does not constitute financial advice. Investors should perform their due diligence or consult with
Leave a Reply
You must be logged in to post a comment.