Vishnu Prakash R Punglia Limited (VPRPL) founded in 1986 is an integrated engineering, procurement and construction company for infrastructure projects in India. They have expertise in water supply, railways, roads and irrigation. With a strong order book and presence in multiple states VPRPL has consistently grown and delivered quality execution.
The company saw a sharp stock movement after their joint venture bagged a large INR 2,696.85 crore order from North Western Railway. The VPRPL-SBEL joint venture will work on infrastructure development for the Ajmer-Chanderiya doubling project between Mandpiya and Chanderiya.
VPRPL-SBEL Project Scope and Impact
The awarded project falls under the Ajmer division’s rail expansion initiative. The scope includes:
- Earthwork and embankment formation
- Bridge construction
- Station and platform development
- Staff housing
- P-Way works
- Ballast supply
- Track linking
- Electrical system installations
This project aims to enhance railway connectivity, reduce travel time, and support regional economic growth. VPRPL has assured stakeholders of its commitment to maintaining quality and adhering to execution timelines.
Stock Reaction
VPRPL IPO was launched on 24 August 2023. The infra IPO got an overwhelming response from the investors, and the issue was oversubscribed to 87X. The listing performance was also as great as the subscription; IPO delivered 47.17% returns on the listing day. Currently, shares of VPRPL are trading below the IPO allotment price.
Following the announcement, the VPRPL stock experienced volatility. The stock opened at INR 163.45, up 3.69% from the previous close of INR 159.90, reaching an intraday high of INR 166.85 before correcting to INR 154.00 by 10:23 AM. The company’s market capitalization currently stands at INR 1,919.52 crore.
VPRPL’s Recent Project Wins
The company has been expanding aggressively. Before this railway contract, VPRPL secured an INR 247.55 crore deal from Bharat Heavy Electricals Limited (BHEL) on 06 February 2025. The project involves civil and structural work for NTPC Sipat’s 1×800 MW Power Block Area, further strengthening VPRPL’s position in the infrastructure sector.
Financial Performance and Challenges
Despite a strong project pipeline, VPRPL faces revenue realization challenges. In Q3 FY25, the company reported:
- Revenue: INR 241 crore, marginally lower than INR 242 crore in Q3 FY24.
- EBITDA: INR 28 crore (Decline 19% YoY)
- Net Profit: INR 4 crore (Dropped 78%)
The decline is fuelled by upfront expenses related to project mobilization, procurement, and execution. Payment delays from government departments is another reason that leads to increased reliance on financing which results in increased interest and squeezing margins.
Stock Performance Trends
VPRPL’s stock has been under pressure across different periods:
- 1 week: Down 5.24%
- 6 months: Down 33.5%
- 1 year: Down 9.86%
Shareholding Pattern (December 2024)
| Category | Dec 2024 | Sep 2024 | Jun 2024 |
|---|---|---|---|
| Promoters | 67.80% | 67.80% | 67.80% |
| FII | 0.90% | 0.10% | 1.00% |
| DII | 4.00% | 4.00% | 4.00% |
| Public | 26.90% | 28.00% | 27.00% |
Outlook and Key Takeaways
VPRPL remains optimistic despite financial hurdles. The company holds a strong order book of INR 5,125 crore, with INR 1,333 crore in new contracts secured this fiscal year. Management expects improved cash flow as government budget allocations normalize delayed payments. Additionally, the extension of Jal Jeevan Mission (JJM) until 2028 is expected to drive further opportunities, given VPRPL’s significant involvement in water infrastructure projects.
Conclusion
Winning the railway contract is a milestone for VPRPL, reinforcing its position as a major infrastructure player. However, financial constraints persist due to delayed payments and increased borrowing costs. Investors will closely monitor cash flow improvements and margin recovery in the coming quarters.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.