WEBSITE BSE:0 NSE: Inc. Year: 2005 Industry: Engineering - Construction My Bucket: Add Stock
Last updated: 15:43
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1. Business Overview
RKEC Projects Ltd. is an Indian engineering, procurement, and construction (EPC) company primarily engaged in infrastructure development. The company undertakes civil construction projects across various sectors, including roads, bridges, flyovers, railways, irrigation, and urban infrastructure. Their core business model involves bidding for and executing contracts awarded by government authorities, public sector undertakings (PSUs), and occasionally private clients. They operate on a contract-based revenue model, earning money through the successful completion of projects and associated milestones, typically on a fixed-price or item-rate basis.
2. Key Segments / Revenue Mix
While RKEC Projects Ltd. is diversified across infrastructure, its primary revenue streams historically derive from the construction of roads, bridges, and flyovers. They also have a presence in railway infrastructure, irrigation projects, and various urban development works. Specific percentage breakdowns of revenue contribution by segment are not consistently disclosed publicly; however, their project portfolio indicates a strong focus on surface transport infrastructure, followed by railway and water infrastructure projects.
3. Industry & Positioning
The Indian engineering and construction sector is highly fragmented, characterized by intense competition from both large diversified EPC players and numerous smaller, regional contractors. RKEC Projects Ltd. positions itself as a mid-sized player in this industry, primarily operating within specific regions of India. They compete on factors such as project execution capabilities, financial bidding strength, timely completion, and adherence to quality standards. The industry structure is heavily influenced by government spending on infrastructure.
4. Competitive Advantage (Moat)
RKEC Projects Ltd. operates in a highly competitive and asset-intensive industry, making it challenging to establish deep, durable moats. However, potential advantages include:
Execution Capability & Track Record: A proven track record of successful project completion builds credibility and enhances eligibility for future, larger contracts.
Operational Efficiency: Efficient project management and cost control can provide a competitive edge in bidding.
Client Relationships: Long-term relationships with government bodies and PSUs can offer repeat business opportunities.
Geographic Focus/Expertise: Developing specialized knowledge or strong local presence in certain regions can be an advantage.
While these are strengths, they typically do not constitute a wide economic moat as they can be replicated by competitors over time.
5. Growth Drivers
Government Infrastructure Push: Continued high levels of government spending on infrastructure development (e.g., National Infrastructure Pipeline, PM Gati Shakti, Bharatmala Pariyojana) will be a primary growth driver.
Urbanization & Smart Cities: Growing urban populations necessitate investment in urban infrastructure, including roads, water supply, sanitation, and affordable housing.
Increased Budgetary Allocations: Sustained or increased budgetary allocations for sectors like roads, railways, and irrigation will directly translate to more tender opportunities.
Order Book Growth: A strong and diversified order book provides revenue visibility and forms the basis for future growth.
Diversification into New Project Types: Expanding into new infrastructure sub-sectors or geographies can open up additional growth avenues.
6. Risks
Project Execution Risks: Delays in land acquisition, environmental clearances, raw material price volatility, and cost overruns can impact profitability.
Dependence on Government Contracts: A significant portion of revenue comes from government tenders, making the company susceptible to changes in government policies, funding priorities, and procurement cycles.
Intense Competition: The fragmented nature of the industry leads to aggressive bidding, which can compress profit margins.
Regulatory & Environmental Risks: Changes in construction norms, labor laws, and environmental regulations can impact project timelines and costs.
Working Capital Management: Construction projects often involve significant working capital requirements, and delays in client payments can strain liquidity.
Economic Slowdown: A general economic slowdown can lead to reduced infrastructure spending and delayed project awards.
7. Management & Ownership
RKEC Projects Ltd. is a promoter-driven company. The Promoters and Promoter Group hold a significant stake in the company, indicating strong alignment of management interests with the company's performance. As of recent disclosures, Mr. Ramakoteswara Rao Gorle is a key promoter and managing director. The quality of management is reflected in their ability to secure and execute projects, manage cash flows, and navigate the competitive landscape of the construction industry.
8. Outlook
RKEC Projects Ltd. operates in a sector poised for significant growth driven by India's ongoing infrastructure development push. The government's consistent focus and substantial budgetary allocations towards roads, railways, and urban infrastructure present a robust opportunity for companies like RKEC to expand their order books and revenue. However, the outlook is balanced by the inherent risks of the construction industry, including intense competition, potential for project delays and cost overruns, and the crucial need for efficient working capital management. The company's ability to consistently bid competitively, execute projects efficiently, and maintain a healthy order book will be critical for sustainable profitability in this capital-intensive and cyclical business environment.
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Market Cap ₹83 Cr.
Stock P/E 4.1
P/B 0.4
Current Price ₹32.2
Book Value ₹ 81.4
Face Value 10
52W High ₹90
Dividend Yield 0%
52W Low ₹ 25
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 | 57 | 106 | 151 | 85 | 77 | 119 | 141 | 76 | 31 | 33 |
| Other Income | 1 | 0 | 2 | 0 | 1 | 0 | 6 | 1 | 2 | 2 |
| Total Income | 58 | 106 | 154 | 85 | 78 | 119 | 147 | 77 | 33 | 35 |
| Total Expenditure | 51 | 86 | 138 | 71 | 66 | 99 | 133 | 65 | 24 | 26 |
| Operating Profit | 7 | 21 | 15 | 14 | 11 | 20 | 14 | 12 | 8 | 9 |
| Interest | 3 | 4 | 5 | 4 | 4 | 6 | 5 | 5 | 3 | 5 |
| Depreciation | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 1 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 1 | 14 | 9 | 7 | 5 | 11 | 7 | 5 | 2 | 2 |
| Provision for Tax | 0 | 3 | 3 | 2 | 1 | 3 | 4 | 1 | 1 | 1 |
| Profit After Tax | 1 | 11 | 6 | 5 | 4 | 8 | 3 | 3 | 2 | 2 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | -0 | 0 | 0 | 0 |
| Profit After Adjustments | 1 | 11 | 6 | 5 | 4 | 8 | 3 | 3 | 2 | 2 |
| Adjusted Earnings Per Share | 0.4 | 4.5 | 2.3 | 2.2 | 1.6 | 3.4 | 1.1 | 1.4 | 0.7 | 0.7 |
| #(Fig in Cr.) | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 197 | 240 | 226 | 304 | 208 | 211 | 300 | 353 | 422 | 281 |
| Other Income | 3 | 1 | 1 | 3 | 3 | 3 | 4 | 4 | 7 | 11 |
| Total Income | 200 | 241 | 227 | 307 | 211 | 213 | 304 | 356 | 429 | 292 |
| Total Expenditure | 169 | 201 | 182 | 234 | 173 | 180 | 245 | 293 | 361 | 248 |
| Operating Profit | 31 | 40 | 46 | 73 | 38 | 33 | 59 | 64 | 68 | 43 |
| Interest | 8 | 4 | 10 | 16 | 17 | 19 | 27 | 27 | 29 | 18 |
| Depreciation | 3 | 3 | 4 | 4 | 4 | 4 | 5 | 8 | 9 | 7 |
| Exceptional Income / Expenses | 0 | 0 | 0 | -13 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 20 | 33 | 32 | 39 | 17 | 10 | 27 | 28 | 30 | 16 |
| Provision for Tax | 7 | 12 | 10 | 11 | 5 | 3 | 15 | 8 | 10 | 7 |
| Profit After Tax | 13 | 20 | 22 | 29 | 13 | 7 | 12 | 20 | 20 | 10 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 13 | 20 | 22 | 29 | 13 | 7 | 12 | 20 | 20 | 10 |
| Adjusted Earnings Per Share | 0 | 8.5 | 9.4 | 11.9 | 5.3 | 3 | 5.2 | 8.3 | 8.4 | 3.9 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 20% | 26% | 7% | 0% |
| Operating Profit CAGR | 6% | 27% | -1% | 0% |
| PAT CAGR | 0% | 42% | -7% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -59% | -22% | -12% | NA% |
| ROE Average | 11% | 11% | 10% | 19% |
| ROCE Average | 16% | 18% | 17% | 32% |
| #(Fig in Cr.) | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 36 | 75 | 94 | 117 | 130 | 137 | 149 | 169 | 189 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 0 | 1 | 2 | 4 | 6 | 49 | 43 | 40 | 27 |
| Other Non-Current Liabilities | -0 | -1 | -0 | -1 | -0 | 0 | 1 | 2 | 4 |
| Total Current Liabilities | 76 | 74 | 163 | 210 | 241 | 180 | 247 | 255 | 362 |
| Total Liabilities | 112 | 149 | 259 | 330 | 376 | 366 | 440 | 466 | 581 |
| Fixed Assets | 11 | 14 | 20 | 33 | 55 | 52 | 54 | 53 | 103 |
| Other Non-Current Assets | 0 | 0 | 10 | 23 | 0 | 0 | 9 | 28 | 7 |
| Total Current Assets | 102 | 135 | 229 | 275 | 321 | 314 | 377 | 385 | 471 |
| Total Assets | 112 | 149 | 259 | 330 | 376 | 366 | 440 | 466 | 581 |
| #(Fig in Cr.) | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 6 | 5 | 2 | 1 | 4 | 1 | 26 | 7 | 13 |
| Cash Flow from Operating Activities | 19 | -24 | 8 | 40 | -37 | 12 | 16 | 24 | 4 |
| Cash Flow from Investing Activities | 2 | -4 | -34 | -37 | 3 | -2 | 5 | -31 | -44 |
| Cash Flow from Financing Activities | -23 | 25 | 24 | 0 | 30 | 15 | -41 | 13 | 37 |
| Net Cash Inflow / Outflow | -1 | -2 | -2 | 4 | -3 | 25 | -19 | 6 | -3 |
| Closing Cash & Cash Equivalent | 5 | 2 | 1 | 4 | 1 | 26 | 7 | 13 | 10 |
| # | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 0 | 8.48 | 9.35 | 11.94 | 5.32 | 2.97 | 5.18 | 8.32 | 8.35 |
| CEPS(Rs) | 8.11 | 9.77 | 10.82 | 13.67 | 6.98 | 4.6 | 7.18 | 11.7 | 12.05 |
| DPS(Rs) | 1.5 | 2 | 2 | 0 | 1.2 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 0 | 31.15 | 39.3 | 48.67 | 53.99 | 57.15 | 61.98 | 70.3 | 78.65 |
| Core EBITDA Margin(%) | 14.47 | 16.17 | 19.58 | 22.91 | 16.83 | 14.35 | 18.42 | 17.04 | 14.49 |
| EBIT Margin(%) | 14.54 | 15.32 | 18.6 | 18.13 | 16.58 | 13.79 | 18.06 | 15.76 | 14.02 |
| Pre Tax Margin(%) | 10.27 | 13.57 | 14.29 | 12.89 | 8.4 | 4.79 | 9.02 | 8 | 7.11 |
| PAT Margin (%) | 6.55 | 8.49 | 9.94 | 9.42 | 6.14 | 3.38 | 4.08 | 5.66 | 4.75 |
| Cash Profit Margin (%) | 7.94 | 9.78 | 11.5 | 10.79 | 8.06 | 5.23 | 5.74 | 7.96 | 6.85 |
| ROA(%) | 11.49 | 15.54 | 10.99 | 9.73 | 3.61 | 1.92 | 3.04 | 4.41 | 3.83 |
| ROE(%) | 35.69 | 36.69 | 26.55 | 27.15 | 10.36 | 5.34 | 8.58 | 12.58 | 11.21 |
| ROCE(%) | 78.15 | 57.88 | 35.89 | 33.39 | 16.17 | 11.21 | 19.97 | 19.05 | 16.44 |
| Receivable days | 73.14 | 92.54 | 131.42 | 99.18 | 199.67 | 251.82 | 189.72 | 175.69 | 148.79 |
| Inventory Days | 59.03 | 36.15 | 65.82 | 94.33 | 163.18 | 146.4 | 118.83 | 124.97 | 141.63 |
| Payable days | 53.29 | 65.03 | 166.13 | 154.81 | 213.81 | 70.26 | 34.88 | 73.34 | 142.64 |
| PER(x) | 0 | 15.21 | 6.07 | 2.89 | 11.32 | 16.29 | 9.56 | 12.56 | 7.6 |
| Price/Book(x) | 0 | 4.14 | 1.44 | 0.71 | 1.11 | 0.85 | 0.8 | 1.49 | 0.81 |
| Dividend Yield(%) | 0 | 1.55 | 3.52 | 0 | 1.99 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | -0.01 | 1.28 | 0.67 | 0.35 | 1.04 | 0.91 | 0.69 | 1.02 | 0.75 |
| EV/Core EBITDA(x) | -0.09 | 7.7 | 3.35 | 1.47 | 5.64 | 5.8 | 3.5 | 5.66 | 4.67 |
| Net Sales Growth(%) | 0 | 21.54 | -5.82 | 34.65 | -31.62 | 1.37 | 42.53 | 17.46 | 19.6 |
| EBIT Growth(%) | 0 | 28.05 | 14.36 | 31.26 | -37.48 | -15.7 | 86.71 | 2.51 | 6.35 |
| PAT Growth(%) | 0 | 57.47 | 10.21 | 27.72 | -55.45 | -44.22 | 72.19 | 62.82 | 0.4 |
| EPS Growth(%) | 0 | 0 | 10.21 | 27.72 | -55.45 | -44.22 | 74.56 | 60.6 | 0.4 |
| Debt/Equity(x) | 0.01 | 0.21 | 0.53 | 0.6 | 0.85 | 1.03 | 0.78 | 0.89 | 1.12 |
| Current Ratio(x) | 1.33 | 1.82 | 1.4 | 1.31 | 1.33 | 1.74 | 1.52 | 1.51 | 1.3 |
| Quick Ratio(x) | 0.91 | 1.61 | 1 | 0.87 | 0.94 | 1.33 | 1.03 | 1.04 | 0.73 |
| Interest Cover(x) | 3.4 | 8.78 | 4.32 | 3.46 | 2.03 | 1.53 | 2 | 2.03 | 2.03 |
| Total Debt/Mcap(x) | 0 | 0.05 | 0.36 | 0.84 | 0.77 | 1.22 | 0.98 | 0.6 | 1.39 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 67.3 | 67.3 | 67.3 | 66.12 | 64.27 | 64.27 | 64.27 | 66.8 | 66.8 | 66.51 |
| FII | 0 | 0 | 0 | 0.13 | 0.1 | 0.3 | 0.18 | 0.11 | 0.11 | 0.13 |
| DII | 0 | 0 | 0 | 0.19 | 0.19 | 0 | 0 | 0 | 0 | 0 |
| Public | 32.7 | 32.7 | 32.7 | 33.57 | 35.44 | 35.43 | 35.55 | 33.09 | 33.09 | 33.35 |
| 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 | 1.61 | 1.61 | 1.61 | 1.59 | 1.54 | 1.54 | 1.54 | 1.72 | 1.72 | 1.72 |
| FII | 0 | 0 | 0 | 0 | 0 | 0.01 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.78 | 0.78 | 0.78 | 0.81 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 | 0.86 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 2.4 | 2.4 | 2.4 | 2.4 | 2.4 | 2.4 | 2.4 | 2.58 | 2.58 | 2.58 |
* The pros and cons are machine generated.
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