RBM Infracon Ltd (MCap 495crs, P/E 17, ROE 25%, ROCE 33%, Promoters 73.4%
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RBM Infracon is a fast-growing EPC and O&M contractor serving sectors like oil & gas, petrochemicals, fertilisers, power, and cement. With over 30 years of experience and marquee clients (Reliance, ONGC, Nayara, L&T), it has recently expanded into oilfield production and green energy.
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RBM Infracon Ltd, established in 1993 and headquartered in Gujarat, is a net debt-free company with a strong financial standing.
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Specializes in comprehensive services in engineering, execution, testing, commissioning, operation, and maintenance, primarily in the mechanical and rotary equipment sector.
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Through its services it caters to Oil & Gas Refineries, Petrochemicals, Fertilizers, Gas Cracker Plants Coal/Gas/WHR based Power Plants, Chemicals, Cement, Fertilizers, Sugar Plants, Paper Plants, Irrigation and other allied sectors.
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Caters to a diverse range of customers, including industry leaders such as Reliance Industries, L&T, Nayara Energy, Yara Fertilizers (Babrala), Chemie-Tech (Nigeria and Malta), and Afcons Infrastructure.
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Enter into oil & gas exploration business and Received ONGC Production Enhancement Contract for Nandej Oil & Gas Field.
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Also moving forward with plans to venture into the high-growth green hydrogen and solar energy sectors.
MOATs (core competencies)
- Negative or 0 days working capital business
- Massive Order Book: Rs 4727.8 Cr order book as of Q4 FY25 (14.7x FY25 revenue). Includes high-value EPC contract with Epitome (Rs 957 Cr) and 15-year ONGC oilfield project
- High Operating Leverage: stable EBITDA margins 14-15%
- Zero Net Debt + Promoter Skin in the Game: Rs 290 Cr promoter infusion via convertible warrants at Rs 580/share in FY25
- For FY26, management anticipates a target revenue of Rs 650-700 crores. At 15% EBITDA, it trades at 5x FY26 EBITDA and 7-8x FY26 PAT.
New Business Optionality:
- Early-stage foray into green hydrogen and solar
- Diversifying into trading, real estate contracting, and industrial supply
Risks
- Execution delays on large orders: Epitome project execution on track (85% boiler, 90% civil done); ONGC takeover ahead of time
- Client concentration: Reliance, ONGC, Nayara are core clients; new orders in green energy to diversify
- Revenue slippages vs guidance: FY25 guidance cut due to client-side delay; transparency maintained in updates
- Cyclical sector exposure: Core exposure to oil & gas infrastructure; diversification into cement, EPC, green energy helps
- Showcased photos and videos of ongoing workover operations at ONGC Nandej on LinkedIn:
- Jun 16th: RBM Infracon Ltd informed the exchange about the termination of the MoU with Greenzo Energy India Ltd for the 15 MW Green Hydrogen Project valued at approximately Rs 200 Crores due to feasibility issues. The company is now in discussions with AIROX NIGEN EQUIPMENTS PRIVATE LIMITED for a new project. Any clarity on this would be helpful.
- The company has not been consistent in the commentary, opting for half-yearly results from voluntary quarterly disclosures 4n February 4th, 2025, and subsequently 5n February 5th, 2025, on request from investors, reversed the decision.
- Out of 60crs of revenue in Q3FY25, 40crs was unrecognised
Disclosure: Not invested