WEBSITE BSE:514360 NSE: KRRAIL Inc. Year: 1983 Industry: Engineering - Construction My Bucket: Add Stock
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1. Business Overview
K&R Rail Engineering Ltd. is an Indian engineering and construction company primarily focused on railway infrastructure development. The company specializes in providing integrated solutions for railway projects, including the construction of new railway sidings, track laying, railway electrification, signaling and telecommunication (S&T) works, bridge and structure construction, and the supply of railway materials. Their core business model involves securing and executing Engineering, Procurement, and Construction (EPC) contracts for both private industrial clients (e.g., power plants, ports, mines, factories needing rail connectivity) and public sector entities, generating revenue through project completion and material supply.
2. Key Segments / Revenue Mix
While specific revenue percentages for each segment are not publicly detailed, K&R Rail Engineering's business primarily comprises:
Railway Infrastructure Projects: This includes EPC services for railway sidings, new track laying, doubling of existing lines, gauge conversion, and related civil works.
Electrification & S&T: Executing projects for railway electrification and installing crucial signaling and telecommunication systems.
Material Supply: Supplying essential railway components such as rails, sleepers, ballast, and other track materials.
The company appears to derive a significant portion of its revenue from comprehensive project execution for industrial clients requiring railway connectivity, alongside works for Indian Railways.
3. Industry & Positioning
K&R Rail Engineering operates within the Indian railway infrastructure sector, an industry driven by significant government investment and private sector logistics needs. The industry is characterized by the presence of large public sector undertakings (like RVNL, Ircon International) and established private players (like L&T, Kalpataru Power Transmission, Texmaco Rail), alongside numerous smaller and regional contractors. K&R Rail Engineering appears to position itself as an integrated solution provider with specific expertise in complex railway sidings and comprehensive EPC projects. As an SME-listed company, it likely competes with mid-sized and smaller regional players, leveraging its specialized expertise and project execution capabilities to secure contracts, especially in niche areas like industrial sidings.
4. Competitive Advantage (Moat)
K&R Rail Engineering's competitive advantages are likely derived from:
Specialized Expertise & Certifications: Demonstrated capability in executing complex railway EPC projects, including various railway disciplines (tracks, S&T, electrification). Achieving necessary approvals and certifications from Indian Railways (RDSO, Zonal Railways) can act as a barrier to entry for new players.
Client Relationships: Established relationships with industrial clients and repeat business from private sector companies requiring railway connectivity.
Project Execution Track Record: A history of successful project completion builds credibility and enhances bidding strength for future contracts.
Integrated Solutions: Offering a comprehensive range of services from design to execution and material supply can be attractive to clients seeking single-point responsibility.
The company's scale may not be a significant moat compared to larger industry players, but its focus and proven capability in its chosen segments provide a relative advantage.
5. Growth Drivers
Government Focus on Infrastructure: India's sustained push for railway modernization, expansion, and development under initiatives like the National Rail Plan 2030, Dedicated Freight Corridors, and railway electrification projects.
Industrial Growth & Logistics Demand: Increasing industrial output and the need for efficient logistics solutions drive demand for new railway sidings and connectivity for private sector companies (e.g., manufacturing, mining, power, ports).
Increased Budgetary Allocations: Consistent and rising capital expenditure by the Indian government on railway infrastructure.
Maintenance & Upgrade Cycles: Ongoing demand for maintenance, rehabilitation, and upgrades of existing railway networks.
6. Risks
Project Execution Risks: Delays in project completion, cost overruns, challenges in securing labor and raw materials, and unforeseen site conditions.
Dependency on Government Policies: A significant portion of the business is linked to government spending and policy decisions related to railway infrastructure.
Intense Competition: The presence of larger, more established players and numerous smaller contractors can lead to pricing pressure and impact order book growth.
Raw Material Price Volatility: Fluctuations in the prices of key raw materials like steel, cement, and ballast can impact project profitability, especially in fixed-price contracts.
Working Capital Management: Large-scale projects require substantial working capital, and delays in client payments can strain liquidity.
Regulatory & Environmental Clearances: Delays in obtaining necessary permits and clearances can impact project timelines.
7. Management & Ownership
K&R Rail Engineering Ltd. is promoted by Mr. Nagaraju Routhu (Chairman & Managing Director) and Mrs. K. Sujatha (Whole-time Director). The promoter group holds a significant stake in the company, which is common for SME-listed companies. The management team has experience in the railway infrastructure sector, driving the company's operational strategies and project execution. The promoter's high ownership typically signifies strong alignment with the company's long-term success.
8. Outlook
K&R Rail Engineering operates in a segment with strong tailwinds from India's ambitious railway infrastructure development plans and the growing needs of industrial logistics. The company's expertise in providing integrated EPC solutions for railway projects, particularly industrial sidings, positions it to benefit from these trends. The consistent government focus on capital expenditure in railways and increasing private sector demand for efficient rail connectivity present a favorable growth environment. However, the company faces inherent risks associated with project-based businesses, including execution challenges, intense competition, raw material price volatility, and dependence on government spending. Its ability to efficiently manage working capital, scale operations, secure new orders amidst competition, and maintain profitability in a highly competitive sector will be crucial for its sustained growth and performance.
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Market Cap ₹116 Cr.
Stock P/E 18.8
P/B 1.1
Current Price ₹27.9
Book Value ₹ 24.5
Face Value 10
52W High ₹87.9
Dividend Yield 0%
52W Low ₹ 19.9
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 163 | 146 | 154 | 142 | 161 | 152 | 241 | 88 | 34 | 12 |
| Other Income | 3 | 1 | -1 | 0 | 1 | 1 | -1 | 0 | 0 | 0 |
| Total Income | 166 | 147 | 153 | 142 | 162 | 153 | 240 | 88 | 34 | 12 |
| Total Expenditure | 152 | 144 | 162 | 137 | 153 | 142 | 253 | 86 | 33 | 13 |
| Operating Profit | 14 | 2 | -10 | 6 | 9 | 11 | -13 | 2 | 1 | -1 |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | -0 | 0 | 0 | 0 |
| Depreciation | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 13 | 1 | -11 | 4 | 8 | 10 | -13 | 1 | -0 | -1 |
| Provision for Tax | 4 | 0 | -3 | 1 | 3 | 3 | -5 | 0 | -0 | -0 |
| Profit After Tax | 9 | 1 | -8 | 3 | 5 | 6 | -8 | 1 | -0 | -1 |
| Adjustments | -0 | 0 | 0 | -0 | 0 | 0 | 0 | -0 | 0 | 0 |
| Profit After Adjustments | 9 | 1 | -8 | 3 | 5 | 6 | -8 | 1 | -0 | -1 |
| Adjusted Earnings Per Share | 4.5 | 0.5 | -3.7 | 1.5 | 1.7 | 1.7 | -2.9 | 0.2 | -0.1 | -0.2 |
| #(Fig in Cr.) | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|
| Net Sales | 390 | 662 | 696 | 375 |
| Other Income | 0 | 4 | 1 | -1 |
| Total Income | 390 | 666 | 697 | 374 |
| Total Expenditure | 376 | 650 | 685 | 385 |
| Operating Profit | 14 | 16 | 12 | -11 |
| Interest | 2 | 2 | 1 | 0 |
| Depreciation | 3 | 3 | 3 | 3 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 |
| Profit Before Tax | 9 | 11 | 8 | -13 |
| Provision for Tax | 3 | 3 | 2 | -5 |
| Profit After Tax | 6 | 8 | 6 | -8 |
| Adjustments | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 6 | 8 | 6 | -8 |
| Adjusted Earnings Per Share | 4 | 3.7 | 2.2 | -3 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 5% | 0% | 0% | 0% |
| Operating Profit CAGR | -25% | 0% | 0% | 0% |
| PAT CAGR | -25% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -62% | -62% | 15% | NA% |
| ROE Average | 11% | 15% | 15% | 15% |
| ROCE Average | 11% | 11% | 11% | 11% |
| #(Fig in Cr.) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Shareholder's Funds | 98 | 73 | 103 |
| Minority's Interest | 0 | 0 | 0 |
| Borrowings | 8 | 1 | 0 |
| Other Non-Current Liabilities | 0 | 0 | -1 |
| Total Current Liabilities | 77 | 141 | 187 |
| Total Liabilities | 184 | 215 | 289 |
| Fixed Assets | 18 | 15 | 10 |
| Other Non-Current Assets | 0 | 0 | 0 |
| Total Current Assets | 165 | 200 | 279 |
| Total Assets | 184 | 215 | 289 |
| #(Fig in Cr.) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Opening Cash & Cash Equivalents | 10 | 42 | 6 |
| Cash Flow from Operating Activities | -3 | 8 | -19 |
| Cash Flow from Investing Activities | -5 | -0 | 2 |
| Cash Flow from Financing Activities | 40 | -44 | 18 |
| Net Cash Inflow / Outflow | 32 | -36 | 1 |
| Closing Cash & Cash Equivalent | 42 | 6 | 6 |
| # | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Earnings Per Share (Rs) | 3.98 | 3.68 | 2.17 |
| CEPS(Rs) | 5.95 | 5.24 | 3.32 |
| DPS(Rs) | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 29.61 | 13.67 | 30.75 |
| Core EBITDA Margin(%) | 3.44 | 1.87 | 1.67 |
| EBIT Margin(%) | 2.74 | 1.9 | 1.38 |
| Pre Tax Margin(%) | 2.27 | 1.65 | 1.22 |
| PAT Margin (%) | 1.61 | 1.18 | 0.89 |
| Cash Profit Margin (%) | 2.41 | 1.67 | 1.36 |
| ROA(%) | 3.42 | 3.91 | 2.46 |
| ROE(%) | 13.44 | 20.58 | 10.63 |
| ROCE(%) | 9.52 | 13.36 | 10.7 |
| Receivable days | 83.54 | 60.6 | 86.14 |
| Inventory Days | 5.06 | 2.36 | 1.72 |
| Payable days | 38.73 | 42.46 | 75.13 |
| PER(x) | 103.56 | 148.73 | 73.3 |
| Price/Book(x) | 13.92 | 40.01 | 5.18 |
| Dividend Yield(%) | 0 | 0 | 0 |
| EV/Net Sales(x) | 1.63 | 1.76 | 0.66 |
| EV/Core EBITDA(x) | 46.18 | 73.43 | 37.01 |
| Net Sales Growth(%) | 0 | 69.91 | 5.13 |
| EBIT Growth(%) | 0 | 18.03 | -23.81 |
| PAT Growth(%) | 0 | 23.93 | -20.36 |
| EPS Growth(%) | 0 | -7.62 | -40.86 |
| Debt/Equity(x) | 0.23 | 0.07 | 0 |
| Current Ratio(x) | 2.13 | 1.42 | 1.49 |
| Quick Ratio(x) | 2.08 | 1.4 | 1.48 |
| Interest Cover(x) | 5.84 | 7.54 | 8.61 |
| Total Debt/Mcap(x) | 0.02 | 0 | 0 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 55.82 | 55.82 | 55.82 | 45.66 | 44.98 | 44.32 | 44.32 | 44.6 | 49.5 | 49.5 |
| FII | 0 | 0 | 0 | 0 | 0.56 | 0.86 | 0.04 | 0.03 | 0.02 | 0.11 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 44.18 | 44.18 | 44.18 | 54.34 | 54.46 | 54.82 | 55.64 | 55.38 | 50.48 | 50.39 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.18 | 1.18 | 1.18 | 1.3 | 1.28 | 1.26 | 1.26 | 1.7 | 2.07 | 2.07 |
| FII | 0 | 0 | 0 | 0 | 0.02 | 0.02 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.94 | 0.94 | 0.94 | 1.55 | 1.55 | 1.56 | 1.59 | 2.11 | 2.11 | 2.11 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 2.12 | 2.12 | 2.12 | 2.85 | 2.85 | 2.85 | 2.85 | 3.81 | 4.18 | 4.18 |
* The pros and cons are machine generated.
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