Small-cap stock below ₹100 will be in focus on Monday amid ₹173 crore order from NBCC

New Delhi, July 19, 2025 — A small-cap stock trading under ₹100 is set to be in the spotlight when markets open on Monday, following a significant project win worth ₹173 crore from National Buildings Construction Corporation (NBCC). This development has sparked strong investor interest and is likely to drive short-term momentum in the stock amid broader optimism in India’s infrastructure and construction sectors.

Richa Industries Bags Prestigious Government Order

Richa Industries Ltd, a Delhi-NCR-based engineering, procurement, and construction (EPC) company specializing in pre-engineered buildings and structural steel fabrication, has announced that it received a Letter of Award (LoA) for a ₹173 crore order from NBCC (India) Ltd. The contract involves civil construction work for a government redevelopment project in Northern India.

As per the regulatory filing on Saturday, the scope of work includes design, engineering, procurement, and execution of residential and office structures, under NBCC’s redevelopment mandate for public infrastructure enhancement.

Stock Performance: Below ₹100, But Trending Higher

The stock, which currently trades at ₹84.25 on the NSE, has already shown signs of revival in the past month, gaining over 18%. With this new order win, the stock is expected to see increased volumes and potential re-rating by analysts who track the small-cap industrial and infrastructure segments.

Speaking to Market View Today, Ajay Vyas, Senior Equity Analyst at Trident Research, said,
"This ₹173 crore order marks a strong validation of Richa Industries’ project execution capabilities. For a company with a market cap below ₹500 crore, such order inflows can materially impact revenue visibility and investor perception."

NBCC’s Role and the Strategic Opportunity

NBCC, a public sector enterprise under the Ministry of Housing and Urban Affairs, has been actively awarding civil and structural works to EPC contractors as part of various redevelopment projects including government colonies, PSU townships, and infrastructure modernization. These contracts often offer assured payments, lower credit risk, and public-sector backing, making them attractive for mid- and small-sized players.

Richa Industries has been a recurring partner with NBCC in earlier projects, albeit on a smaller scale. This order indicates rising confidence in the company’s capacity to execute larger and more complex assignments.

Market Context: Infrastructure Thematic in Play

The Indian infrastructure sector has been a standout theme in 2025, fueled by the government's continued capital expenditure push and private sector interest in roads, railways, housing, and logistics. The recent Union Budget allocated ₹11.11 lakh crore for infrastructure development, and companies associated with construction, steel fabrication, and urban redevelopment have significantly outperformed the benchmark indices.

The Nifty Infrastructure Index is up 22.4% year-to-date, while the broader Nifty 50 has risen only 10.6%. Within this context, small-cap infra stocks like Richa Industries are beginning to attract institutional attention.

Analyst Viewpoint: Growth Visibility and Re-Rating Potential

Market experts believe that the latest order enhances the earnings visibility for Richa Industries, while also improving its qualification credentials for bidding in larger tenders. However, they also caution against over-leveraged exposure.

Vandana Mehta, Portfolio Manager at Arcus Capital, commented,
"One-off orders are helpful for sentiment, but what investors should look for is a consistent order book build-up. Richa’s past execution track record and partnership with NBCC bode well for near-term growth."

The order is expected to be executed over a 24-month period, contributing revenue in FY26 and FY27, and potentially leading to a top-line growth of over 30% CAGR if new orders continue to flow.

Financial Snapshot: Lean Operations, Scaling Potential

As of the March 2025 quarter, Richa Industries reported a revenue of ₹98 crore, EBITDA of ₹9.2 crore, and net profit of ₹3.1 crore. The company has been operating at modest margins but has steadily improved working capital efficiency.

Its debt-to-equity ratio stands at 0.48, reflecting a relatively manageable leverage structure, which is crucial in EPC businesses. With the ₹173 crore order win, the company’s order book now exceeds ₹450 crore, a record high for the firm.

Investor Outlook: Cautious Optimism

For retail and institutional investors, small-cap infra stocks often represent a high-risk, high-reward play. With government tailwinds and a strong NBCC order in hand, Richa Industries may emerge as a turnaround story in FY26.

The stock’s valuations remain attractive — trading at a trailing P/E of 13.8x — compared to the sector average of 22x. Given the momentum, analysts expect a price target range of ₹105–₹120 in the next two quarters, subject to execution milestones and further order wins.

However, investors are advised to track the company's ability to manage scale, execution risks, and working capital challenges — all of which are common concerns in the EPC sector.