RKEC Projects Ltd. (RKEC) AI Stock Analysis

• Market Cap: ₹1.57B
• Dividend Yield: N/A
• Average Volume (3M): 73.51K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.33
• Revenue Growth: 3.61%
• EPS Growth: -19.48%
• Country: IN
• Employees: 481
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 1.41
• Shares Outstanding: 23,990,600
• 10 Day Avg. Volume: 33,835
• 30 Day Avg. Volume: 73,506
• PEG Ratio: 22.15
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -2.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹73.00
• Price Target Upside: 11.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ₹73.00 ▲(11.26% Upside)

RKEC Projects Ltd. has a moderate overall stock score of 60, driven by stable operational efficiency but challenged by weak revenue growth and cash flow management. The technical analysis indicates a neutral to bearish sentiment, while the valuation suggests the stock is reasonably priced. The absence of earnings call data and corporate events limits further insights.

RKEC Projects Ltd. Business Overview & Revenue Model

Company Description

RKEC Projects Limited operates as an engineering construction company in India. The company constructs marine structures, such as wharves, berths, jetties, mooring dolphins, intake structures break waters, and coastal-shore protection works; and roads and bridges, as well as steel girders/PSU girders, and composite girders. It also undertakes building and infrastructure works, including civil works for power and refinery projects port development works, transmission lines, sports complex, buildings works, water intake systems, heavy RCC pre-stressed concrete and steel structures, and framed warehouses/industrial sheds; and rural electrification and LT/HT works. The company was incorporated in 2005 and is based in Visakhapatnam, India.

How the Company Makes Money

RKEC Projects Ltd. generates revenue through its projects in the infrastructure and construction industry. The company primarily earns money by undertaking large-scale construction contracts in various sectors such as marine infrastructure, bridge construction, and road development. RKEC secures contracts from both government and private entities, which form the backbone of its revenue streams. The company is paid based on the completion of project milestones and contractual agreements, which include engineering, procurement, and construction (EPC) services. Additionally, RKEC may form joint ventures or partnerships with other firms to leverage expertise and share resources, further contributing to its earnings. The company's financial success is closely tied to its ability to win and efficiently execute large infrastructure projects, maintaining timelines and quality to ensure client satisfaction and repeat business.

RKEC Projects Ltd. Financial Statement Overview

Summary

RKEC Projects Ltd. shows solid revenue growth but faces challenges with profitability margins due to rising costs. The balance sheet indicates increased leverage, which could pose risks if not managed carefully. The cash flow situation is concerning with negative free cash flow, highlighting the need for improved cash management.

Income Statement

RKEC Projects Ltd. has shown consistent revenue growth, with a 19.6% increase from 2024 to 2025. However, the Gross Profit Margin has decreased from 29.98% in 2024 to 15.42% in 2025, indicating potential cost pressures. The Net Profit Margin remained stable at around 4.75% in 2025. Despite challenges, the company maintains a positive EBIT Margin of 10.09% and a strong EBITDA Margin of 13.82% in 2025.

Balance Sheet

The company's Debt-to-Equity Ratio increased to 1.04 in 2025, indicating higher leverage compared to previous years. Return on Equity (ROE) for 2025 is 10.62%, which is reasonable but shows a decrease from 11.83% in 2024. The Equity Ratio stands at 32.49%, suggesting moderate financial stability. Overall, while leverage has increased, the balance sheet remains relatively stable.

Cash Flow

The cash flow situation is concerning, with negative Free Cash Flow in 2025 at -₹708.75 million, indicating challenges in cash generation. The Operating Cash Flow to Net Income Ratio is negative, reflecting operational cash constraints. The company needs to improve its cash management to strengthen its financial position.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.13B	4.22B	3.53B	2.78B	2.11B	2.08B
Gross Profit	1.51B	650.93M	1.06B	772.97M	660.16M	571.44M
EBITDA	555.14M	583.24M	509.31M	519.58M	294.44M	289.99M
Net Income	180.95M	200.38M	199.58M	124.27M	71.19M	127.64M
Balance Sheet
Total Assets	5.73B	5.81B	4.66B	4.40B	3.67B	3.78B
Cash, Cash Equivalents and Short-Term Investments	85.25M	470.60M	130.47M	67.91M	261.45M	8.43M
Total Debt	2.07B	1.95B	1.50B	1.16B	1.41B	1.11B
Total Liabilities	3.82B	3.92B	2.97B	2.92B	2.30B	2.48B
Stockholders Equity	1.92B	1.89B	1.69B	1.49B	1.37B	1.30B
Cash Flow
Free Cash Flow	-426.99M	-708.75M	-19.73M	-107.25M	104.03M	-631.57M
Operating Cash Flow	94.86M	-128.16M	241.27M	160.28M	117.18M	-367.71M
Investing Cash Flow	-366.24M	-439.38M	-310.50M	52.07M	-15.18M	31.84M
Financing Cash Flow	280.67M	370.02M	131.79M	-405.88M	151.01M	301.87M

RKEC Projects Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RKEC, the sentiment is Negative. The current price of 65.61 is below the 20-day moving average (MA) of 70.95, below the 50-day MA of 69.19, and below the 200-day MA of 75.06, indicating a bearish trend. The MACD of -1.21 indicates Positive momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 14.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RKEC.

RKEC Projects Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RKEC	60 Neutral	₹1.57B	8.70	―	―	3.61%	-19.48%
BRNL	58 Neutral	₹1.93B	1.15	―	―	-43.40%	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SADBHIN	46 Neutral	₹1.31B	―	―	―	2.53%	92.20%
ARSSINFRA	41 Neutral	₹1.25B	49.51	―	―	-70.96%	-588.51%

RKEC Projects Ltd. Corporate Events

RKEC Projects Ltd. Announces Strategic Financial Initiatives

RKEC Projects Ltd. announced several strategic decisions following its board meeting, including an increase in authorized share capital and plans to raise further capital through various financial instruments. These measures are aimed at strengthening the company’s financial position and supporting its growth initiatives. The board also approved limits for loans and investments, subject to shareholder approval, and established a Finance Committee to oversee the issuance of securities.