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Check Before You Invest : RKEC Projects Ltd

BSE: 0 NSE: RKEC ISIN: INE786W01010
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does RKEC Projects Ltd belong to?
RKEC Projects Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is RKEC Projects Ltd a good quality company?
RKEC Projects Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is RKEC Projects Ltd undervalued or overvalued?
RKEC Projects Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is RKEC Projects Ltd a good buy now?
RKEC Projects Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of RKEC Projects Ltd?
RKEC Projects Ltd revenue growth is 17% for FY-2025 , which is above its 5 year CAGR of 6% , indicating faster growth.
Q.2 Gross Profit margin of RKEC Projects Ltd?
RKEC Projects Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.7% for FY-2025 , which is below its 5 year median of 10.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of RKEC Projects Ltd?
RKEC Projects Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.32% for FY-2025 , which is below its 5 year median of 17.32% indicating decreasing margins.
Q.4 Net Profit Margin of RKEC Projects Ltd?
RKEC Projects Ltd Net Profit Margin is 5.02% for FY-2025 , is in line with with its 5 year median of 5.02%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 9.7 10.6
Operating Profit Margin 15.32 17.32
Net Profit Margin 5.02 5.02
Q.5 Return on Asset of RKEC Projects Ltd?
RKEC Projects Ltd Return on Asset is 4.01%, which is above its 5 year historical median of 3.76%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of RKEC Projects Ltd?
RKEC Projects Ltd Return on equity is 11.23% for FY-2025 , which is above its historical median of 10.09%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of RKEC Projects Ltd?
RKEC Projects Ltd Return on capital employed is 16.44% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of RKEC Projects Ltd?
RKEC Projects Ltd Cash conversion cycle is 242 days, below its historical median of 271 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.8 0.8
ROE 11.23 10.09
ROCE 16.44 16.44
Cash Conversion Cycle 242 days 271 days
Q.9 Debt to Equity ratio of RKEC Projects Ltd?
RKEC Projects Ltd Debt-to-Equity ratio is 1.12 , which is above with the industry average of 0.37 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of RKEC Projects Ltd?
RKEC Projects Ltd Debt to cash flow from operations is 18.7 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of RKEC Projects Ltd?
Promoters hold 66.80% of the RKEC Projects Ltd, with 70.57% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of RKEC Projects Ltd vs industry peers?
RKEC Projects Ltd revenue CAGR is 6.02% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 399 101.5
Gross Profit 38.7 5.2
Operating Profit 61 6
Net Profit 20 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.8 0.63
ROE 11.23 6.64
ROCE 16.44 11.13
Cash Conversion Cycle (days) 242.1 52

Valuation & price assessment

Q.1 Stock return of RKEC Projects Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -7.51% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - -7.5% -14.2% -47.1%
Q.3 Valuation ratios of RKEC Projects Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 10.85 12.33 27.03
Price to Book 0.49 1.06 1.70
Price to Sales 0.4 0.50 1.45
EV to EBITDA 5.9 4.86 11.36

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