NSEI:RKEC

Stock Analysis Report

Executive Summary

RKEC Projects Limited operates as a construction company in India.

Snowflake

Fundamentals

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has RKEC Projects's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.4%

RKEC

1.5%

IN Construction

3.9%

IN Market


1 Year Return

-37.6%

RKEC

9.1%

IN Construction

6.0%

IN Market

Return vs Industry: RKEC underperformed the Indian Construction industry which returned 9.1% over the past year.

Return vs Market: RKEC underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

RKECIndustryMarket
7 Day-1.4%1.5%3.9%
30 Day-4.9%7.6%7.8%
90 Day-17.3%-1.3%2.5%
1 Year-34.7%-37.6%10.5%9.1%8.2%6.0%
3 Yearn/a21.8%17.6%23.0%16.7%
5 Yearn/a36.0%28.4%43.5%30.0%

Price Volatility Vs. Market

How volatile is RKEC Projects's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RKEC Projects undervalued compared to its fair value and its price relative to the market?

4.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: RKEC (₹42.4) is trading above our estimate of fair value (₹17.7)

Significantly Undervalued: RKEC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RKEC is good value based on its PE Ratio (4.5x) compared to the Construction industry average (12.9x).

PE vs Market: RKEC is good value based on its PE Ratio (4.5x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate RKEC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RKEC is overvalued based on its PB Ratio (1.1x) compared to the IN Construction industry average (0.7x).


Next Steps

Future Growth

How is RKEC Projects forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RKEC's earnings are forecast to decline over the next 3 years (-5.4% per year).

Earnings vs Market: RKEC's earnings are forecast to decline over the next 3 years (-5.4% per year).

High Growth Earnings: RKEC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if RKEC's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if RKEC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if RKEC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RKEC Projects performed over the past 5 years?

33.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RKEC's earnings have grown significantly by 33.2% per year over the past 5 years.

Accelerating Growth: RKEC's earnings growth over the past year (10.2%) is below its 5-year average (33.2% per year).

Earnings vs Industry: RKEC earnings growth over the past year (10.2%) exceeded the Construction industry 1.1%.


Return on Equity

High ROE: RKEC's Return on Equity (23.8%) is considered high.


Return on Assets

ROA vs Industry: RKEC has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: RKEC has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is RKEC Projects's financial position?


Financial Position Analysis

Short Term Liabilities: RKEC's short term assets (₹2.3B) exceeds its short term liabilities (₹1.6B)

Long Term Liabilities: RKEC's short term assets (2.3B) exceeds its long term liabilities (21.3M)


Debt to Equity History and Analysis

Debt Level: RKEC's debt to equity ratio (52.6%) is considered high

Reducing Debt: RKEC's debt to equity ratio has reduced from 98.2% to 52.6% over the past 5 years.

Debt Coverage: RKEC's debt is not well covered by operating cash flow (16%).

Interest Coverage: RKEC's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet

Inventory Level: RKEC has a high level of physical assets or inventory.

Debt Coverage by Assets: RKEC's debt is covered by short term assets (assets are 4.625280x debt).


Next Steps

Dividend

What is RKEC Projects's current dividend yield, its reliability and sustainability?

4.72%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%0.6%markettop25%2.4%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RKEC's dividend (4.72%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: RKEC's dividend (4.72%) is in the top 25% of dividend payers in the Indian market (2.42%)

Stable Dividend: Too early to tell whether RKEC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if RKEC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.4%), RKEC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of RKEC Projects's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Garapati Radhakrishna 0

0yrs

Tenure

0

Mr. Garapati Radhakrishna serves as a Managing Director and Chairman at RKEC Projects Limited. Mr. Radhakrishna holds a B.E. 


Board Age and Tenure

1.8yrs

Average Tenure

55yo

Average Age

Experienced Board: RKEC's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: RKEC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹235,00021 Aug 19
Garapati Devi
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares5,000
Max Price₹47.00
Buy₹47,00017 Aug 19
Garapati Radhakrishna
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares1,000
Max Price₹47.00
Buy₹47,00017 Aug 19
Garapati Devi
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares1,000
Max Price₹47.00
Buy₹611,00015 Aug 19
Garapati Radhakrishna
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares13,000
Max Price₹47.00
Buy₹234,00015 Aug 19
Garapati Devi
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares5,000
Max Price₹46.80
Buy₹46,00013 Aug 19
Garapati Devi
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares1,000
Max Price₹46.00
Buy₹92,50010 Aug 19
Garapati Radhakrishna
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares2,000
Max Price₹46.25
Buy₹94,00010 Aug 19
Garapati Devi
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares2,000
Max Price₹47.00
Buy₹695,00013 Feb 19
Garapati Devi
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares13,000
Max Price₹53.46
Buy₹57,00001 Feb 19
Garapati Radhakrishna
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares1,000
Max Price₹57.00

Ownership Breakdown


Management Team

  • Garapati Radhakrishna

    Chairman & MD

    • Tenure: 0yrs
  • Garapati Devi (55yo)

    Whole Time Director

    • Tenure: 2.9yrs
  • B. Rao

    General Manager of Commercial & Administration

    • Tenure: 0yrs
  • G. Rammohan

    Director of Projects & Whole-time Director

    • Tenure: 0.6yrs
  • G. Satyanarayana

    Chief Financial Officer

    • Tenure: 0yrs
  • M. Keerthana

    General Manager of Finance & Accounts

    • Tenure: 0yrs
  • Vijay Jannada

    Company Secretary & Compliance Officer

    • Tenure: 0yrs

Board Members

  • Garapati Radhakrishna

    Chairman & MD

    • Tenure: 0yrs
  • Garapati Devi (55yo)

    Whole Time Director

    • Tenure: 2.9yrs
  • Satish Soni

    Independent Director

    • Tenure: 0yrs
  • Lucas Thalakala

    Independent Director

    • Tenure: 0yrs
  • Gudapati Ratnam (52yo)

    Director

    • Tenure: 3.9yrs
  • G. Rammohan

    Director of Projects & Whole-time Director

    • Tenure: 0.6yrs
  • J Rao (57yo)

    Independent Director

    • Tenure: 0.2yrs

Company Information

RKEC Projects Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RKEC Projects Limited
  • Ticker: RKEC
  • Exchange: NSEI
  • Founded: 2005
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹1.017b
  • Shares outstanding: 23.99m
  • Website: https://www.rkecprojects.com

Number of Employees


Location

  • RKEC Projects Limited
  • Rednam Alcazar
  • No 10-12-1, 3rd Floor
  • Visakhapatnam
  • Andhra Pradesh
  • 530020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RKECNSEI (National Stock Exchange of India)YesEquity SharesININROct 2017

Biography

RKEC Projects Limited operates as a construction company in India. The company constructs marine structures, such as wharves, berths, jetties, mooring dolphins, intake structures break waters, and coastal  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:50
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.