RKEC Projects

Why is RKEC Projects Ltd falling/rising?

As of 10-Aug, RKEC Projects Ltd's stock price is at 26.60, down 2.99%, reflecting significant underperformance with a year-to-date return of -62.58%. Weak financial fundamentals, including high debt levels and consecutive negative results, along with a high percentage of pledged shares, contribute to a bearish trend and declining investor confidence.

As of 10-Aug, RKEC Projects Ltd's stock price is falling, currently at 26.60, reflecting a change of -0.82 or -2.99%. The stock has significantly underperformed the sector today, with a performance that is 2.99% lower than its peers. Over the past year, the stock has generated a return of -62.58%, indicating a substantial decline in value. This decline is compounded by the company's weak financial fundamentals, including a high Debt to EBITDA ratio of 5.91 times, which suggests a low ability to service debt. <BR><BR>Moreover, the company has not declared results in the last six months and has reported negative results for five consecutive quarters, with a particularly sharp fall in operating profit of -55.83%. The latest six-month profit after tax (PAT) has decreased by -71.52%, and net sales have fallen by -72.56%. Such poor financial performance has contributed to a lack of investor confidence, further driving the stock price down.<BR><BR>Additionally, 75.24% of promoter shares are pledged, which can exert additional downward pressure on the stock price in a falling market. The stock's performance is also reflected in its moving averages, where it is higher than the 5-day moving average but lower than the 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Overall, these factors collectively explain the decline in RKEC Projects Ltd's stock price.

Which are the latest news on RKEC Projects?

Should I buy, sell or hold RKEC Projects Ltd?

What does RKEC Projects do?

RKEC Projects Ltd is a micro-cap construction company based in Visakhapatnam, India, specializing in engineering and contracting services. As of December 2025, it reported net sales of ₹33 Cr and a net profit of ₹2 Cr, with a market cap of ₹79 Cr.

Overview: <BR>RKEC Projects Ltd is a construction company operating in the micro-cap market segment.<BR><BR>History: <BR>RKEC Projects Ltd was originally incorporated on April 01, 2005, as "RKEC Projects Private Limited". It acquired the running business of "RK Engineers & Contractors" on April 01, 2006, and later converted to a Public Limited Company, changing its name to "RKEC Projects Limited" on November 10, 2016. The latest reported quarterly results indicate net sales and net profit for December 2025.<BR><BR>Financial Snapshot: <BR>Net Sales: 33 Cr (Quarterly Results - Dec 2025) <BR>Net Profit: 2 Cr (Quarterly Results - Dec 2025) <BR>Market cap: INR 79 Cr (Micro Cap)<BR><BR>Key Metrics: <BR>P/E: 8.00 <BR>Industry P/E: 35 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: 0.68 <BR>Return on Equity: 4.52% <BR>Price to Book: 0.37 <BR><BR>Contact Details: <BR>Address: Door No.10-12-1 Rednam Alcazar, Old Jail Road Rednam Gardens Visakhapatnam Andhra Pradesh : 530020 <BR>Tel: 91-891-2574517 <BR>Email: info@rkecprojects.com <BR>Website: http://www.rkecprojects.com

How big is RKEC Projects?

As of 10th June, RKEC Projects Ltd has a market capitalization of 79.00 Cr, with recent net sales of 281.18 Cr and a net profit of 9.51 Cr. The balance sheet for March 2025 shows shareholder's funds of 188.69 Cr and total assets of 580.71 Cr.

As of 10th June, RKEC Projects Ltd has a market capitalization of 79.00 Cr, categorizing it as a Micro Cap company.<BR><BR>In the latest four quarters, RKEC Projects reported Net Sales of 281.18 Cr and a Net Profit of 9.51 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, showing Shareholder's Funds of 188.69 Cr and Total Assets of 580.71 Cr.

Who are in the management team of RKEC Projects?

The management team of RKEC Projects includes Radhakrishna Garapati (Chairman & Managing Director), Parvathi Devi Garapati, G V Rammohan (both Whole-time Directors), and several Independent Directors: Lucas Peter Thalakala, Satish Soni, J Kameswara Rao, along with Director Sita Ratnam Gudapati, Company Secretary Vijay Kumar Jannada, and Additional Director P R Kumar. They are responsible for the company's strategic direction and management.

The management team of RKEC Projects includes the following individuals:<BR><BR>1. **Radhakrishna Garapati** - Chairman & Managing Director<BR>2. **Parvathi Devi Garapati** - Whole-time Director<BR>3. **G V Rammohan** - Whole-time Director<BR>4. **Lucas Peter Thalakala** - Independent Director<BR>5. **Satish Soni** - Independent Director<BR>6. **J Kameswara Rao** - Independent Director<BR>7. **Sita Ratnam Gudapati** - Director<BR>8. **Vijay Kumar Jannada** - Company Secretary<BR>9. **P R Kumar** - Additional Director<BR><BR>This team plays a crucial role in the strategic direction and management of the company.

Who are the peers of the RKEC Projects?

RKEC Projects' peers include Navkar Urban, Semac Construct, IL&FS Transport, Integrity Infra, Suntech Infra, McNally Bharat, H.M. Electro, PVV Infra Ltd, and Rudra Gas. RKEC Projects has average management risk, below average growth, and the lowest 1-year return at -67.71% among its peers.

Peers: The peers of RKEC Projects are Navkar Urban., Semac Construct, IL&FS Transport, Integrity Infra., Suntech Infra., McNally Bharat, H.M. Electro, PVV Infra Ltd, and Rudra Gas.<BR><BR>Quality Snapshot: Excellent management risk is observed at Integrity Infra. Good management risk is found at Suntech Infra. Average management risk is present at Navkar Urban., H.M. Electro, and RKEC Projects, while Below Average management risk is noted at Semac Construct and McNally Bharat. Growth is Excellent at PVV Infra Ltd, Average at Suntech Infra., and Below Average at Navkar Urban., Semac Construct, RKEC Projects, and McNally Bharat, with the rest showing Does not qualify or Excellent growth. Capital Structure is Excellent at H.M. Electro, Good at Navkar Urban., Semac Construct, Integrity Infra., and PVV Infra Ltd, Average at Suntech Infra. and Rudra Gas, and Below Average at RKEC Projects and McNally Bharat.<BR><BR>Return Snapshot: Integrity Infra. has the highest 1-year return at 68.79%, while RKEC Projects has the lowest at -67.71%, indicating a significant negative performance compared to its peers. Additionally, several peers, including Navkar Urban., IL&FS Transport, Semac Construct, and Suntech Infra., have negative six-month returns.

Are RKEC Projects Ltd latest results good or bad?

RKEC Projects Ltd's latest results are concerning, with a 72.56% year-on-year decline in net sales and a 79.30% drop in net profit, indicating significant financial stress despite a slight quarter-on-quarter revenue increase. The company faces operational challenges and rising costs, suggesting a precarious outlook.

The latest results for RKEC Projects Ltd are quite concerning. In the December 2025 quarter, the company experienced a dramatic decline in net sales, which fell by 72.56% year-on-year to ₹32.65 crores. This significant drop in revenue was accompanied by a net profit decrease of 79.30%, down to ₹1.71 crores from ₹8.26 crores in the same quarter last year. <BR><BR>While there was a slight quarter-on-quarter revenue increase of 5.22%, the lack of profit growth and the overall year-on-year performance indicate severe operational challenges. The company's operating margin did improve to 21.01%, reflecting some cost management success, but this was overshadowed by the collapse in sales and profitability.<BR><BR>Additionally, rising interest costs, which surged by 51.01%, and increasing working capital pressures further complicate the company's financial situation. With these indicators, RKEC Projects Ltd is facing significant financial stress, and the outlook appears precarious. Overall, the results can be characterized as bad, highlighting the urgent need for the company to address its operational and financial challenges.

How has been the historical performance of RKEC Projects?

RKEC Projects has shown consistent growth in net sales and profit, with net sales increasing from INR 207.87 crore in March 2021 to INR 421.92 crore in March 2025, and profit after tax rising from INR 7.12 crore to INR 20.04 crore during the same period, despite some fluctuations in cash flow. Total assets and liabilities have also grown significantly, indicating robust expansion.

Answer:<BR>The historical performance of RKEC Projects shows a consistent growth in net sales and profit over the years, with a notable increase in the most recent fiscal year.<BR><BR>Breakdown:<BR>RKEC Projects has demonstrated a steady increase in net sales from INR 207.87 crore in March 2021 to INR 421.92 crore in March 2025. This growth trajectory reflects a significant rise in total operating income, which reached INR 421.92 crore in March 2025, up from INR 210.72 crore in March 2022. The company's operating profit (PBDIT) also improved, rising from INR 26.39 crore in March 2022 to INR 58.32 crore in March 2025, although the operating profit margin has slightly decreased from 14.17% in March 2023 to 12.2% in March 2025. Profit before tax has shown a positive trend, increasing from INR 10.09 crore in March 2022 to INR 29.98 crore in March 2025, while profit after tax has also risen from INR 7.12 crore to INR 20.04 crore in the same period. The company's total assets grew from INR 365.98 crore in March 2022 to INR 580.71 crore in March 2025, indicating a robust expansion in its financial position. However, total liabilities also increased, from INR 365.98 crore to INR 580.71 crore, reflecting a rise in both long-term and short-term borrowings. Cash flow from operating activities has fluctuated, with a notable decrease to INR 4 crore in March 2025 from INR 24 crore in March 2024, contributing to a net cash outflow of INR 2 crore in the latest fiscal year. Overall, RKEC Projects has shown resilience and growth in its financial performance, despite some fluctuations in cash flow.

Who are the top shareholders of the RKEC Projects?

The top shareholder of RKEC Projects is Garapati Radhakrishna, holding 63.81% of the shares, with pledged promoter holdings at 78.95%. Institutional investors hold 0.3%, while individual investors collectively own 31.85%, and the highest public shareholder is Shamoil Plumber at 1.26%.

The top shareholders of RKEC Projects primarily consist of promoters, with Garapati Radhakrishna holding the largest share at 63.81%. The pledged promoter holdings are significant at 78.9497%. In terms of institutional investors, there are two Foreign Institutional Investors (FIIs) that collectively hold 0.3%. The highest public shareholder is Shamoil Plumber, who owns 1.26%. Additionally, individual investors hold a combined 31.85% of the shares.

Is RKEC Projects overvalued or undervalued?

As of September 2, 2024, RKEC Projects is considered very attractive due to its undervalued status, with a PE ratio of 10.06, EV to EBITDA of 6.80, and a Price to Book Value of 1.07, alongside strong ROCE and ROE metrics, and recent outperformance against the Sensex.

As of 2 September 2024, RKEC Projects has moved from a grade of risky to very attractive, indicating a significant improvement in its valuation outlook. The company is currently undervalued, supported by a PE ratio of 10.06, an EV to EBITDA of 6.80, and a Price to Book Value of 1.07. These ratios suggest that the stock is trading at a discount compared to its earnings and asset values.<BR><BR>In comparison to its peers, RKEC Projects has a similar PE ratio of 10.06 and an EV to EBITDA of 6.80, which aligns closely with industry standards. Notably, the company's return on capital employed (ROCE) stands at 12.63% and return on equity (ROE) at 10.62%, indicating efficient use of capital. Additionally, RKEC Projects has outperformed the Sensex over the past week and month, with returns of 16.96% and 37.33%, respectively, reinforcing its attractive valuation proposition.

What is the technical trend for RKEC Projects?

As of April 15, 2025, RKEC Projects shows a mildly bearish technical trend, with mixed indicators including a mildly bullish weekly MACD and a mildly bearish monthly MACD, while daily moving averages and OBV also reflect a bearish outlook.

As of 15 April 2025, the technical trend for RKEC Projects has changed from bearish to mildly bearish. The weekly MACD indicates a mildly bullish stance, while the monthly MACD shows a mildly bearish trend. The Bollinger Bands are bullish on the weekly chart but mildly bearish on the monthly. Daily moving averages reflect a mildly bearish outlook. The KST is mildly bullish weekly but mildly bearish monthly, and both the weekly and monthly OBV are mildly bearish. Overall, the current technical stance is mildly bearish, with key indicators such as the daily moving averages and monthly MACD contributing to this assessment.

When is the next results date for RKEC Projects?

No Upcoming Board Meetings

Has RKEC Projects declared dividend?

RKEC Projects Ltd has declared a 12% dividend, amounting to ₹1.2 per share, with an ex-date of September 16, 2021. Despite the dividend declaration, the dividend yield is 0%, and total returns over various periods show mixed performance, with significant gains over the long term.

RKEC Projects Ltd has declared a 12% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 12%<BR>- Amount per share: 1.2<BR>- Ex-date: 16 Sep 21<BR><BR>Dividend Yield: 0%<BR><BR>Total Returns by Period:<BR>In the 6-month period, the price return was -16.36%, with a dividend return of 0%, resulting in a total return of -16.36%.<BR><BR>For the 1-year period, the price return was -6.35%, with a dividend return of 0%, leading to a total return of -6.35%.<BR><BR>Over the 2-year period, the price return was 49.69%, with a dividend return of 0%, giving a total return of 49.69%.<BR><BR>In the 3-year period, the price return was 89.53%, with a dividend return of 0%, resulting in a total return of 89.53%.<BR><BR>For the 4-year period, the price return was -2.63%, with a dividend return of 1.26%, leading to a total return of -1.37%.<BR><BR>In the 5-year period, the price return was 155.91%, with a dividend return of 2.75%, resulting in a total return of 158.66%.<BR><BR>Overall, RKEC Projects Ltd has declared a dividend, but the dividend yield remains at 0%. The total returns over various periods show a mix of negative and positive performance, with significant gains over the longer term despite recent declines in shorter periods.