RKEC Projects Ltd. (RKEC) AI Stock Analysis

• Market Cap: ₹1.65B
• Dividend Yield: N/A
• Average Volume (3M): 44.93K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 1.57
• Revenue Growth: 19.60%
• EPS Growth: 0.37%
• Country: IN
• Employees: 481
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 1.13
• Shares Outstanding: 23,990,600
• 10 Day Avg. Volume: 38,697
• 30 Day Avg. Volume: 44,932
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹71.00
• Price Target Upside: 5.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: ₹71.00 ▲(5.42% Upside)

The overall stock score reflects a company with strong revenue growth but facing profitability challenges and cash flow concerns. Technical indicators suggest bearish momentum, adding risk in the short term. The stock appears undervalued based on the P/E ratio, but lack of dividend yield and current technical weaknesses weigh on the overall score.

RKEC Projects Ltd. Business Overview & Revenue Model

Company Description

RKEC Projects Ltd. (RKEC) is an India-based infrastructure and construction company primarily engaged in executing civil engineering projects. The company specializes in marine works, bridges, roads, highways, and industrial structures. With a strong presence in the engineering and construction sector, RKEC has a portfolio that includes the development of ports, harbors, and other significant infrastructure projects.

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. demonstrates solid revenue growth with a 19.6% increase from 2024 to 2025. However, profitability margins are under pressure due to rising costs, with the Gross Profit Margin falling significantly. The balance sheet shows increased leverage, and the cash flow situation is concerning with negative free cash flow, indicating challenges in cash generation. While the company is on a growth trajectory, it must improve operational efficiencies and 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	Mar 2025	Mar 2024	Mar 2022	Mar 2023	Mar 2021
Income Statement
Total Revenue	4.22B	3.53B	2.11B	2.78B	2.08B
Gross Profit	650.93M	1.06B	606.44M	772.97M	571.44M
EBITDA	583.24M	509.31M	238.11M	519.58M	289.99M
Net Income	200.38M	199.58M	71.19M	124.27M	127.64M
Balance Sheet
Total Assets	5.81B	4.66B	3.67B	4.40B	3.78B
Cash, Cash Equivalents and Short-Term Investments	470.60M	405.04M	261.45M	67.91M	8.43M
Total Debt	1.95B	1.50B	1.41B	1.16B	1.11B
Total Liabilities	3.92B	2.97B	2.30B	2.92B	2.48B
Stockholders Equity	1.89B	1.69B	1.37B	1.49B	1.30B
Cash Flow
Free Cash Flow	-708.75M	-149.36M	104.03M	―	―
Operating Cash Flow	-128.16M	241.27M	117.18M	160.28M	―
Investing Cash Flow	-462.26M	-310.50M	―	52.07M	31.84M
Financing Cash Flow	564.79M	131.79M	151.01M	―	301.87M

RKEC Projects Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 67.35 is below the 20-day moving average (MA) of 68.43, below the 50-day MA of 74.98, and below the 200-day MA of 83.07, indicating a bearish trend. The MACD of -1.96 indicates Negative momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 39.31 is Neutral, 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	59 Neutral	₹1.65B	8.22		―	19.60%	0.37%
Sector *	54 Neutral	C$45.05M	57.91	15.08%	4.51%	1.39%	-26.37%
BRNL	49 Neutral	₹1.61B	0.94		―	-27.77%	―
SADBHIN	41 Neutral	₹1.26B	―		―	2.53%	92.21%