RKEC Projects Ltd (RKEC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

HEC Infra Proj.

Sadbhav Infra.

BCPL Railway

RKEC Projects

Maruti Infra.

K&R Rail Engine.

Mayasheel Vent.

Valplast Technol

Refex Renewables

Oval Projects

Desco Infra.

Why is RKEC Projects Ltd ?

Weak Long Term Fundamental Strength with a -4.59% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.76 times
The company has been able to generate a Return on Equity (avg) of 8.91% signifying low profitability per unit of shareholders funds

With a fall in Operating Profit of -55.83%, the company declared Very Negative results in Dec 25

The company has declared negative results for the last 5 consecutive quarters
The company has declared negative results in Dec 24 after 3 consecutive negative quarters
PAT(9M) At Rs 6.79 cr has Grown at -60.80%
NET SALES(Q) At Rs 32.65 cr has Fallen at -72.56%
ROCE(HY) Lowest at 8.44%

70.57% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is RKEC Projects for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

RKEC Projects

-41.05%

-0.71

57.92%

Sensex

8.53%

0.73

11.73%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.42%

EBIT Growth (5y)

-4.59%

EBIT to Interest (avg)

2.15

Debt to EBITDA (avg)

5.04

Net Debt to Equity (avg)

0.68

Sales to Capital Employed (avg)

0.81

Tax Ratio

39.47%

Dividend Payout Ratio

Pledged Shares

70.57%

Institutional Holding

0.11%

ROCE (avg)

8.57%

ROE (avg)

8.91%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.49

EV to EBIT

10.04

EV to EBITDA

7.52

EV to Capital Employed

0.70

EV to Sales

0.88

PEG Ratio

Dividend Yield

ROCE (Latest)

6.95%

ROE (Latest)

4.52%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-30What is not working for the Company

PAT(9M)

At Rs 6.79 cr has Grown at -60.80%

NET SALES(Q)

At Rs 32.65 cr has Fallen at -72.56%

ROCE(HY)

Lowest at 8.44%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.95 times

INTEREST(Q)

At Rs 5.21 cr has Grown at 51.01%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 1.32 times

PBT LESS OI(Q)

Lowest at Rs 0.36 cr.

NON-OPERATING INCOME(Q)

is 84.75 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 0.66

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Here's what is not working for RKEC Projects

Net Sales - Quarterly

At Rs 32.65 cr has Fallen at -72.56%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 0.36 cr has Fallen at -96.69%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 3.42 cr has Grown at -71.52%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

At Rs 5.21 cr has Grown at 51.01%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 1.32 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio- Half Yearly

Lowest at 1.95 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 0.36 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 84.75 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.66

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)