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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of RKEC Projects Ltd

About the Company - RKEC Projects Ltd

RKEC Projects Ltd. is a Public Limited Listed company incorporated on 01/04/2005 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L45200AP2005PLC045795 and registration number is 045795. Currently company belongs to the Industry of Construction & Contracting. Company’s Total Operating Revenue is Rs. 208.65 Cr. and Equity Capital is Rs. 23.99 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Construction & Contracting10-12-1, Rednam Alcazar, Rednam Gardens, Vishakapatnam Andhra Pradesh 530002info@rkecprojects.com
http://www.rkecprojects.com
Management
NamePosition Held
Mr. G RadhakrishnaChairman
Mr. R JayachandranManaging Director
Mrs. G Parvathi DeviWhole Time Director
Mr. G V Rama MohanWhole Time Director
Vice Adm.(Retd) Satish SoniIndependent Director
Lt. Gen. (Retd.) P R KumarIndependent Director
Mr. T Peter LucasIndependent Director
Brig.(Retd) J K RaoIndependent Director
Mr. Potluri Srinivasa ChakravarthiNon Executive Director

RKEC Projects Ltd. Share Price Update

Share PriceValue
Today₹77.35
Previous Day₹76.85

Basic Stock Data of RKEC Projects Ltd

Market Cap 268 Cr.
Current Price 112
High / Low120/48.5
Stock P/E18.5
Book Value 67.9
Dividend Yield0.00 %
ROCE18.9 %
ROE11.9 %
Face Value 10.0

Data Source: screener.in

Competitors of RKEC Projects Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Supreme Infrastructure India Ltd 173 Cr. 67.375.0/19.6 2,2210.00 %%% 10.0
Man Infraconstruction Ltd 8,091 Cr. 218249/66.225.9 32.80.74 %32.0 %26.4 % 2.00
Univastu India Ltd 162 Cr. 143152/76.535.2 41.80.00 %19.3 %15.8 % 10.0
Vascon Engineers Ltd 1,760 Cr. 81.093.2/23.817.4 43.20.31 %11.3 %11.3 % 10.0
Nila Spaces Ltd 208 Cr. 5.275.77/2.4024.5 2.890.00 %4.98 %3.65 % 1.00
Industry Average110.4 Cr102.9120.624.540.21%13.52%11.43%6.6

Patel Engineering Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales27.8253.0685.5935.2345.9628.0399.4331.2072.0797.8298.8738.4745.19
Expenses23.1543.3273.3928.3539.6323.2894.2927.0170.6780.4379.3030.2539.65
Operating Profit4.679.7412.206.886.334.755.144.191.4017.3919.578.225.54
OPM %16.79%18.36%14.25%19.53%13.77%16.95%5.17%13.43%1.94%17.78%19.79%21.37%12.26%
Other Income0.580.341.930.270.820.240.830.172.710.700.130.140.90
Interest1.143.654.652.982.012.135.051.982.562.347.502.373.20
Depreciation2.361.800.310.980.941.020.971.031.091.271.581.992.00
Profit before tax1.754.639.173.194.201.84-0.051.350.4614.4810.624.001.24
Tax %42.29%25.49%18.43%18.81%25.48%20.11%-1,720.00%45.93%-36.96%31.15%99.34%30.25%28.23%
Net Profit1.013.467.472.603.131.47-0.910.730.629.980.072.800.89
EPS in Rs0.421.443.111.081.300.61-0.380.300.264.160.031.170.37

RKEC Projects Ltd Quarterly Chart

Patel Engineering Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales97795771113197240244298202209300280
Expenses94704861100169201201229171184246230
Operating Profit39109132939436832245451
OPM %3%12%17%13%12%14%16%18%23%16%12%18%18%
Other Income02111311-1132-32
Interest044358461314132015
Depreciation0344333444457
Profit before tax34235203335411792730
Tax %0%34%52%36%38%36%37%30%26%27%32%55%
Net Profit33123132024301361214
EPS in Rs3.082.901.122.033.306.708.4810.0612.625.322.625.135.73
Dividend Payout %0%0%0%0%0%22%24%20%0%23%0%0%

RKEC Projects Ltd Profit & Loss Yearly Chart

RKEC Projects Ltd Growth

Compounded Sales Growth
10 Years:14%
5 Years:5%
3 Years:0%
TTM:0%
Compounded Profit Growth
10 Years:20%
5 Years:-4%
3 Years:-25%
TTM:39%
Stock Price CAGR
10 Years:%
5 Years:17%
3 Years:21%
1 Year:99%
Return on Equity
10 Years:19%
5 Years:17%
3 Years:9%
Last Year:12%

Patel Engineering Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital10101010101924242424242424
Reserves111011131617517296109112125128
Borrowings24152010150155070111149127135
Other Liabilities34452723727760891331167311098
Total Liabilities79796856112113150235322359359385385
Fixed Assets26201715121114203355525451
CWIP0000000102300910
Investments0000000000000
Other Assets53595141100102135205267304307322324
Total Assets79796856112113150235322359359385385

RKEC Projects Ltd Reserves and Borrowings Chart

RKEC Projects Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1442-102520-24739-361216
Cash from Investing Activity -810-102-4-34-374-35
Cash from Financing Activity -0-3-2-3-6-23252503015-41
Net Cash Flow520-1319-1-2-23-225-19

Patel Engineering Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days104149117776273125123131305258196
Inventory Days5822621238612352191239337302269
Days Payable240288130156112142321311314199216
Cash Conversion Cycle104-33541582928535-858328361249
Working Capital Days12-35146212586121104266272207
ROCE %7%20%20%17%29%70%58%35%40%14%8%19%

RKEC Projects Ltd Financial Efficiency Indicators Chart

No data available for the Shareholding

No data available for the Shareholding Pattern chart.

No data available for the No. of Shareholders chart.

This stock is not held by any mutual fund

RKEC Projects Ltd ROCE Trend

RKEC Projects Ltd EPS Trend

RKEC Projects Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)5.182.975.3210.769.35
Diluted EPS (Rs.)5.182.975.3210.769.35
Cash EPS (Rs.)7.254.606.9813.4710.82
Book Value[Excl.RevalReserv]/Share (Rs.)61.9857.1553.9947.6439.30
Book Value[Incl.RevalReserv]/Share (Rs.)61.9857.1553.9947.6439.30
Revenue From Operations / Share (Rs.)125.1987.8386.64126.7194.11
PBDIT / Share (Rs.)19.3611.0013.7328.3417.36
PBIT / Share (Rs.)17.299.3712.0725.6415.88
PBT / Share (Rs.)11.294.217.2815.3613.45
Net Profit / Share (Rs.)5.182.975.3210.769.35
NP After MI And SOA / Share (Rs.)5.182.975.3210.769.35
PBDIT Margin (%)15.4612.5215.8522.3618.44
PBIT Margin (%)13.8010.6613.9320.2316.87
PBT Margin (%)9.014.788.3912.1214.29
Net Profit Margin (%)4.133.376.148.499.93
NP After MI And SOA Margin (%)4.133.376.148.499.93
Return on Networth / Equity (%)8.355.199.8522.5823.79
Return on Capital Employeed (%)21.4811.9921.1951.7139.53
Return On Assets (%)2.821.933.387.838.63
Long Term Debt / Equity (X)0.280.350.040.030.01
Total Debt / Equity (X)0.741.000.820.570.51
Asset Turnover Ratio (%)0.740.560.581.031.27
Current Ratio (X)1.521.741.331.301.40
Quick Ratio (X)1.031.330.940.871.00
Dividend Payout Ratio (NP) (%)0.000.000.0018.5810.69
Dividend Payout Ratio (CP) (%)0.000.000.0014.859.23
Earning Retention Ratio (%)0.000.000.0081.4289.31
Cash Earning Retention Ratio (%)0.000.000.0085.1590.77
Interest Coverage Ratio (X)3.232.132.866.007.13
Interest Coverage Ratio (Post Tax) (X)1.851.572.114.464.84
Enterprise Value (Cr.)202.30187.32213.60102.49150.96
EV / Net Operating Revenue (X)0.670.881.030.330.66
EV / EBITDA (X)4.367.106.481.513.63
MarketCap / Net Operating Revenue (X)0.390.550.690.270.60
Retention Ratios (%)0.000.000.0081.4189.30
Price / BV (X)0.790.841.110.721.44
Price / Net Operating Revenue (X)0.390.550.690.270.60
EarningsYield0.100.060.080.310.16

RKEC Projects Ltd Profitability Ratios (%)

RKEC Projects Ltd Liquidity Ratios

RKEC Projects Ltd Liquidity Ratios (%)

RKEC Projects Ltd Interest Coverage Ratios (X)

RKEC Projects Ltd Valuation Ratios

Fair Value / Intrinsic Value of RKEC Projects Ltd

Fair Value: ₹152.47

The stock is undervalued by 36.14% compared to the current price ₹112

*Investments are subject to market risks

Strength and Weakness of RKEC Projects Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 28.08%, which is a positive sign.
  2. The company has higher reserves (59.31 cr) compared to borrowings (57.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (183.62 cr) and profit (17.62 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 16.05 and average Dividend Yield of 15.10%.
  2. The stock has a high average Working Capital Days of 93.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 140.25, which may not be favorable.

Should I Buy RKEC Projects Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in RKEC Projects Ltd:
    1. Net Profit Margin: 4.13%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 21.48% (Industry Average ROCE: 6.78%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 1.85
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.03
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 17.0 (Industry average Stock P/E: 12.16)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.74
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in RKEC Projects Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE