RKEC Projects

Why is RKEC Projects Ltd falling/rising?

As of 01-Sep, RKEC Projects Ltd's stock price is declining, currently at Rs 21.54, with a year-to-date drop of 60.02% and a yearly decline of 68.35%. The company's poor performance is attributed to negative financial results, high debt, and decreased investor participation.

As of 01-Sep, RKEC Projects Ltd's stock price is falling, currently at Rs 21.54, reflecting a decrease of Rs 0.74 or 3.32%. This decline is supported by several negative factors impacting the company's performance. Over the past week, the stock has underperformed, showing a decline of 3.19%, while the benchmark Sensex has only decreased by 1.15%. In the last month, RKEC Projects has experienced a significant drop of 17.25%, compared to a modest decline of 1.34% in the Sensex.<BR><BR>The company's year-to-date performance is particularly concerning, with a staggering decrease of 60.02%, and a yearly decline of 68.35%. This poor performance is compounded by the fact that RKEC Projects has recorded negative results for six consecutive quarters, with a drastic fall in net sales of 77.23%. The company's operating losses and a high debt-to-EBITDA ratio of 5.27 times indicate a weak financial position, further contributing to investor concerns.<BR><BR>Additionally, the stock is trading below all key moving averages, suggesting a bearish trend. There has also been a notable drop in investor participation, with delivery volume falling by 44.23% against the five-day average. The high percentage of pledged promoter shares, at 75.24%, adds to the downward pressure on the stock, especially in a declining market. Overall, these factors illustrate why RKEC Projects Ltd is experiencing a decline in its stock price.

Which are the latest news on RKEC Projects?

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 (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 oversee the company's operations and strategic direction.

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 is responsible for overseeing the operations and strategic direction of the company.

What does RKEC Projects do?

RKEC Projects Ltd is a micro-cap construction company, originally incorporated in 2005, that reported net sales of 17 Cr and a net loss of 17 Cr for June 2026. It has a market cap of INR 59 Cr and key financial metrics include a debt-equity ratio of 1.46 and a return on equity of -36.55%.

Overview:<BR>RKEC Projects Ltd is a construction company operating in the micro cap market segment.<BR><BR>History:<BR>The company was originally incorporated on April 01, 2005, as "RKEC Projects Private Limited" and acquired the business of "RK Engineers & Contractors" on April 01, 2006. It converted to a Public Limited Company and changed its name to "RKEC Projects Limited" on November 10, 2016. The latest quarterly results reported net sales and net profit for June 2026.<BR><BR>Financial Snapshot:<BR>- Net Sales: 17 Cr (Quarterly Results - Jun 2026)<BR>- Net Profit: -17 Cr (Quarterly Results - Jun 2026)<BR>- Market Cap: INR 59 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>- P/E: N/A<BR>- Industry P/E: 35<BR>- Dividend Yield: 0.00%<BR>- Debt Equity: 1.46<BR>- Return on Equity: -36.55%<BR>- Price to Book: 0.38<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

Who are the peers of the RKEC Projects?

RKEC Projects' peers include AJR Infra, K2 Infragen, Teamo Production, and others, with varying management risks and growth rates. Teamo Production leads in 1-year return at -24.66%, while RKEC Projects has the lowest at -65.63%.

Peers: The peers of RKEC Projects are AJR Infra &, K2 Infragen, Teamo Production, Trom Industries, Popular Found., Rudra Gas, Conart Engineers, VSF Projects, and Kaizen Agro.<BR><BR>Quality Snapshot: Excellent management risk is observed at Rudra Gas, while Average management risk is found at K2 Infragen, Trom Industries, and Kaizen Agro, and the rest. Below Average management risk is noted at AJR Infra &, Teamo Production, Popular Found., Conart Engineers, VSF Projects, and the rest. In terms of Growth, Excellent growth is seen at K2 Infragen and Trom Industries, Good growth at Teamo Production and Rudra Gas, Average growth at Kaizen Agro, and Below Average growth at RKEC Projects, AJR Infra &, Popular Found., and the rest. For Capital Structure, Excellent capital structure is noted at Teamo Production, Good capital structure at Rudra Gas and Kaizen Agro, and Below Average capital structure at AJR Infra &, K2 Infragen, RKEC Projects, Popular Found., Conart Engineers, VSF Projects, and the rest.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Teamo Production at -24.66%, while RKEC Projects has the lowest at -65.63%, indicating a significantly worse performance. RKEC Projects' 1-year return is substantially lower than that of its peers. Additionally, K2 Infragen, Trom Industries, and RKEC Projects all have negative six-month returns.

How big is RKEC Projects?

As of 31st August, RKEC Projects Ltd has a market capitalization of 59.00 Cr and reported Net Sales of 121.41 Cr with a Net Profit loss of 55.36 Cr over the latest four quarters. Shareholder's Funds were 188.69 Cr and Total Assets were 580.71 Cr as of March 2025.

As of 31st August, RKEC Projects Ltd has a market capitalization of 59.00 Cr, categorizing it as a Micro Cap company.<BR><BR>In the latest four quarters, RKEC Projects reported Net Sales of 121.41 Cr. However, the company experienced a Net Profit loss of 55.36 Cr during the same period.<BR><BR>The latest annual period for the balance sheet is March 2025, where Shareholder's Funds amounted to 188.69 Cr and Total Assets were reported at 580.71 Cr.

Should I buy, sell or hold RKEC Projects Ltd?

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.