RKEC Projects Ltd. (RKEC) AI Stock Analysis

• Market Cap: ₹1.91B
• Dividend Yield: N/A
• Average Volume (3M): 85.89K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.54
• Revenue Growth: 3.61%
• EPS Growth: -19.51%
• 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: 118,574
• 30 Day Avg. Volume: 85,886
• 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: ₹78.00
• Price Target Upside: 2.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ₹78.00 ▲(2.31% Upside)

RKEC Projects Ltd. scores well due to strong technical indicators and reasonable valuation. However, financial performance is hindered by increased leverage and negative cash flow, which are areas of concern. The absence of earnings call insights and corporate events does not impact the score.

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, posing potential risks if not managed carefully. The cash flow situation is concerning, with negative free cash flow, which could strain financial flexibility. Overall, the company is on a growth trajectory but needs to 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	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.22B	4.22B	2.78B	3.53B	2.11B	2.08B
Gross Profit	1.48B	650.93M	772.97M	1.06B	606.44M	571.44M
EBITDA	576.55M	583.24M	519.58M	509.31M	238.11M	289.99M
Net Income	200.38M	200.38M	124.27M	199.58M	71.19M	127.64M
Balance Sheet
Total Assets	5.81B	5.81B	4.40B	4.66B	3.67B	3.78B
Cash, Cash Equivalents and Short-Term Investments	470.60M	470.60M	67.91M	405.04M	261.45M	8.43M
Total Debt	1.95B	1.95B	1.16B	1.50B	1.41B	1.11B
Total Liabilities	3.92B	3.92B	2.92B	2.97B	2.30B	2.48B
Stockholders Equity	1.89B	1.89B	1.49B	1.69B	1.37B	1.30B
Cash Flow
Free Cash Flow	-574.99M	-708.75M	―	-149.36M	104.03M	―
Operating Cash Flow	5.60M	-128.16M	160.28M	241.27M	117.18M	―
Investing Cash Flow	-448.71M	-462.26M	52.07M	-310.50M	―	31.84M
Financing Cash Flow	417.48M	564.79M	―	131.79M	151.01M	301.87M

RKEC Projects Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.24
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 76.24 is above the 20-day moving average (MA) of 71.33, above the 50-day MA of 68.99, and below the 200-day MA of 77.15, indicating a neutral trend. The MACD of 1.75 indicates Negative momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 68.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	72 Outperform	₹1.91B	9.91	―	―	3.61%	-19.51%
BRNL	56 Neutral	1.72B	1.02	42.67%	―	-43.40%	―
SADBHIN	46 Neutral	1.40B	-3.31	13.75%	―	2.53%	92.20%
ARSSINFRA	41 Neutral	1.25B	-1.01	4.58%	―	-70.96%	-588.51%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

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.