RBM Infracon shares hit 5% upper circuit following Rs 3,498 crore ONGC order

RBM Infracon stock has skyrocketed 621.5 percent in the past 12 months, compared to 28 percent run in Nifty.

RBM Infracon share price surged 5 percent on September 9 to hit the upper circuit after the company announced on Friday that it has bagged a service order from the Oil and Natural Gas Corporation (ONGC).

The order, valued at Rs 3,498 crore, comprises Rs 3,371 crore for crude and Rs 127 crore for gas at Nandej, as detailed in an exchange filing.

Issued on September 6, the order is valid for 15 years from the effective date. Earlier, on August 30, ONGC had announced plans to grow its green energy portfolio via its wholly-owned subsidiary ONGC Green Ltd. to 10 gigawatts by FY30.

RBM Infracon is specialist contractor for construction, maintenance and turnaround services to oil & gas refineries, petrochemicals, fertilizers, gas cracker plants coal/gas/WHR-based power plants, chemicals, cement, sugar plants, paper plants, irrigation and other allied sectors.

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The company specializes in a range of services, including the fabrication and erection of structural work on an EPC basis, tankage installation, and piping for carbon, stainless, and alloy steels. They also provide ARC maintenance for refineries, petrochemical plants, and fertilizer facilities, as well as turnaround (shutdown) services for power, refinery, and petrochemical sectors.

Additionally, RBM Infracon handles blasting and painting, insulation and refractory work, electrical and instrumentation services, and material handling solutions such as wagon tipplers and conveyor systems.

For the quarter ended June 2024, RBM Infracon reported net sales of Rs 38.85 crore, reflecting a remarkable increase of 105.42 percent year-on-year. The company's quarterly net profit surged by 309.95 percent YoY to Rs 3.29 crore. Additionally, EBITDA for the same period rose by 154.26 percent, reaching Rs 4.78 crore.

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At 9:40 am RBM Infracon shares were locked at 5 percent upper circuit at Rs 800.50 on the National Stock Exchange (NSE). The stock has zoomed around 80 percent so far this year, outperforming Nifty's returns of 16 percent. The stock has skyrocketed 621.5 percent in the past 12 months, compared to 28 percent run in Nifty.

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