RKEC Projects Ltd. (RKEC) AI Stock Analysis

• Market Cap: ₹1.60B
• Dividend Yield: N/A
• Average Volume (3M): 73.51K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.32
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹58.00 ▲(8.72% Upside)

RKEC Projects Ltd. faces significant challenges with weak technical indicators and financial performance under pressure from declining revenue and cash flow issues. However, the stock's valuation is attractive with a low P/E ratio, suggesting potential for upside if operational and financial improvements are made.

Positive Factors

Business Model Flexibility

The diverse contract types allow RKEC to adapt to various project requirements, providing flexibility and stability in revenue generation.

Government Contracts

Strong relationships with government agencies ensure a steady flow of projects, enhancing long-term revenue stability and growth potential.

Operational Efficiency

Efficient cost management is reflected in a strong gross profit margin, supporting sustainable profitability despite revenue growth challenges.

Negative Factors

Revenue Growth Challenges

Declining sales indicate potential market challenges or competitive pressures, which could impact long-term growth and market position.

Cash Flow Constraints

Limited cash generation from operations suggests liquidity issues, which could hinder the company's ability to invest in growth opportunities.

High Leverage

Reliance on debt financing increases financial risk, potentially limiting flexibility and increasing vulnerability to interest rate changes.

RKEC Projects Ltd. Business Overview & Revenue Model

Company Description

RKEC Projects Ltd. (RKEC) is a prominent player in the infrastructure and construction sector, specializing in a wide range of services including civil engineering, road construction, and project management. The company focuses on large-scale projects that cater to both public and private sectors, contributing significantly to the development of infrastructure across various regions. With a commitment to quality and innovation, RKEC delivers comprehensive solutions that encompass planning, design, and execution of infrastructure projects.

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 stable operational efficiency but faces challenges in revenue growth and cash flow management. The company's profitability margins are under pressure, and high leverage poses potential risks. While the balance sheet is moderately strong, improvements in cash flow generation and debt management are necessary for enhanced financial stability.

Income Statement

RKEC Projects Ltd. shows a mixed performance in its income statement. The gross profit margin for TTM is healthy at 36.55%, indicating efficient cost management. However, the net profit margin has slightly decreased to 4.38% from the previous year, reflecting some pressure on profitability. Revenue growth rate is negative at -2.04% in TTM, suggesting a decline in sales. EBIT and EBITDA margins remain stable, indicating consistent operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is slightly high at 1.08, indicating a reliance on debt financing. Return on equity is reasonable at 9.73%, showing decent profitability relative to shareholder equity. The equity ratio stands at 33.46%, suggesting a balanced asset financing structure but with room for improvement in reducing leverage.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow growth at -25.74% in TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is low at 0.03, suggesting limited cash generation from operations. The free cash flow to net income ratio is negative, highlighting cash flow constraints despite reported profits.

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: 53.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 53.35 is below the 20-day moving average (MA) of 61.57, below the 50-day MA of 66.76, and below the 200-day MA of 71.25, indicating a bearish trend. The MACD of -2.96 indicates Positive momentum. The RSI at 42.43 is Neutral, neither overbought nor oversold. The STOCH value of 44.11 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
BRNL	58 Neutral	₹2.08B	1.16	―	―	-57.13%	―
RKEC	57 Neutral	₹1.60B	8.84	―	―	-12.26%	-36.87%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SADBHIN	44 Neutral	₹1.32B	-3.13	―	―	4.63%	67.17%
ARSSINFRA	41 Neutral	₹1.25B	―	―	―	-75.03%	-17499.32%

RKEC Projects Ltd. Corporate Events

RKEC Projects Limited Conducts 20th AGM with E-Voting

RKEC Projects Limited held its Twentieth Annual General Meeting (AGM) on September 18, 2025, through video conferencing. The meeting involved remote e-voting and electronic voting on resolutions, with the process overseen by Ashwini Inamdar, a practicing company secretary. The company ensured compliance with relevant regulations and engaged the National Securities Depository Limited for e-voting services. The results of the voting were consolidated and reported, reflecting the company’s adherence to governance norms.