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RKEC Projects Overview

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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RKEC Projects Key Financials

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

RKEC Projects Share Price

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Volume
Price

RKEC Projects Quarterly Price

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RKEC Projects Peer Comparison

RKEC Projects Quarterly Results

#(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

RKEC Projects Profit & Loss

#(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

Growth Rates

# 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%

RKEC Projects Balance Sheet

#(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

RKEC Projects Cash Flow

#(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

RKEC Projects Ratios

# 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

RKEC Projects Shareholding Pattern

# 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

RKEC Projects News

RKEC Projects Pros & Cons

Pros

  • Stock is trading at 0.4 times its book value
  • Company has reduced debt.

Cons

  • Company has a low return on equity of 11% over the last 3 years.
  • Debtor days have increased from 73.34 to 142.64days.
  • The company has delivered a poor profit growth of -7% over past five years.
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