RKEC Projects Ltd. (RKEC) AI Stock Analysis

• Market Cap: ₹1.07B
• Dividend Yield: N/A
• Average Volume (3M): 73.51K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 1.46
• Revenue Growth: -12.26%
• EPS Growth: -36.87%
• Country: IN
• Employees: 481
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.66
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹46.00 ▼(-15.94% Downside)

RKEC Projects Ltd. receives a moderate overall stock score of 59. The valuation is a positive factor, suggesting the stock may be undervalued. However, financial performance and technical analysis indicate challenges, particularly in revenue growth and market momentum. The absence of dividend yield and earnings call data limits further insights.

Positive Factors

High Gross Margin

A 36.55% gross margin indicates durable project-level pricing power and efficient direct cost control in engineering and construction. It provides a structural buffer against input cost inflation, supports reinvestment in project capabilities, and underpins sustainable operating performance over months.

Stable Operating Margins

Stable EBIT and EBITDA margins reflect consistent operational execution and cost discipline across projects. This stability suggests repeatable delivery processes and competitive project management, which help preserve profitability through backlog cycles and support medium-term cash flow predictability.

Moderate Leverage

A debt-to-equity around 1.08 with a 36% equity ratio denotes a balanced capital structure for project financing. This level of leverage can enable bidding on larger contracts and growth investment while remaining manageable, preserving financial flexibility if cash generation improves.

Negative Factors

Declining Revenue

Sustained revenue decline reduces scale and weakens the company's ability to spread fixed project costs, pressuring margins and bid competitiveness. If the trend persists it can erode market position, reduce bargaining power with suppliers, and constrain long-term investment in capabilities.

Weak Cash Generation

Negative operating and free cash flows and a very low OCF-to-net-income ratio indicate earnings are not converting to cash. For a project-centric business this raises working capital and funding risks, increasing reliance on external financing and limiting sustainable reinvestment capacity.

Low Net Profitability

A low net margin and middling ROE suggest limited conversion of top-line into shareholder returns. This constrains internal funding for growth, makes the company more sensitive to cost and revenue shocks, and signals the need for sustained improvements in pricing, efficiency, or higher-margin project mix.

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 generates revenue primarily through contracts awarded for construction and infrastructure development projects. The company's revenue model is built on fixed-price contracts, cost-plus contracts, and time-and-material contracts, allowing for flexibility in pricing based on project requirements. Key revenue streams include government contracts for public works, private sector projects, and partnerships with other construction firms for joint ventures on larger projects. Additionally, RKEC may engage in consultancy services related to project management and engineering, providing further avenues for income. The company’s strong relationships with government agencies and private developers play a crucial role in securing ongoing projects, thus contributing significantly to its earnings.

RKEC Projects Ltd. Financial Statement Overview

Summary

RKEC Projects Ltd. shows a mixed financial performance. Strong gross profit margins and operational efficiency are offset by challenges in revenue growth and cash flow generation. The balance sheet is moderately leveraged with room for improvement in returns on equity.

Income Statement

RKEC Projects Ltd. shows a mixed performance in its income statement. The company has a healthy gross profit margin of 36.55% in the TTM, indicating efficient cost management. However, the net profit margin is relatively low at 4.38%, suggesting challenges in converting revenue into profit. The revenue growth rate is negative at -11.08%, highlighting a decline in sales compared to previous periods. Despite this, the EBIT and EBITDA margins remain stable, reflecting operational efficiency.

Balance Sheet

The balance sheet of RKEC Projects Ltd. reveals a moderate financial structure. The debt-to-equity ratio is 1.08, indicating a balanced approach to leveraging. The return on equity is 9.73%, which is decent but shows room for improvement in generating returns for shareholders. The equity ratio stands at 36.00%, suggesting a reasonable level of equity financing relative to total assets.

Cash Flow

The cash flow statement indicates some concerns for RKEC Projects Ltd. The company has negative operating and free cash flows, with a slight improvement in free cash flow growth at 17.79%. The operating cash flow to net income ratio is low at 0.03, and the free cash flow to net income ratio is negative, highlighting challenges in cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.68B	4.22B	3.53B	2.78B	2.11B	2.08B
Gross Profit	785.32M	650.93M	1.06B	772.97M	660.16M	571.44M
EBITDA	524.58M	583.24M	509.31M	519.58M	294.44M	289.99M
Net Income	160.55M	200.38M	199.58M	124.27M	71.19M	127.64M
Balance Sheet
Total Assets	5.80B	5.81B	4.66B	4.40B	3.67B	3.78B
Cash, Cash Equivalents and Short-Term Investments	437.93M	470.60M	130.47M	67.91M	261.45M	8.43M
Total Debt	1.90B	1.95B	1.50B	1.16B	1.41B	1.11B
Total Liabilities	3.71B	3.92B	2.97B	2.92B	2.30B	2.48B
Stockholders Equity	2.09B	1.89B	1.69B	1.49B	1.37B	1.30B
Cash Flow
Free Cash Flow	-502.95M	-708.75M	-19.73M	-107.25M	104.03M	-631.57M
Operating Cash Flow	-72.25M	-128.16M	241.27M	160.28M	117.18M	-367.71M
Investing Cash Flow	-284.83M	-439.38M	-310.50M	52.07M	-15.18M	31.84M
Financing Cash Flow	208.41M	370.02M	131.79M	-405.88M	151.01M	301.87M

RKEC Projects Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 54.72 is above the 20-day moving average (MA) of 49.20, above the 50-day MA of 52.44, and below the 200-day MA of 66.98, indicating a bearish trend. The MACD of -2.88 indicates Positive momentum. The RSI at 27.37 is Positive, neither overbought nor oversold. The STOCH value of 12.17 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	59 Neutral	₹1.07B	6.55	―	―	-12.26%	-36.87%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
BRNL	50 Neutral	₹1.82B	0.99	―	―	-57.13%	―
SADBHIN	44 Neutral	₹1.17B	-1.86	―	―	4.63%	67.17%
ARSSINFRA	43 Neutral	₹1.25B	-0.04	―	―	-75.03%	-17499.32%
SADBHAV	41 Neutral	₹1.05B	-0.65	―	―	―	―