NSEI:RKEC

Stock Analysis Report

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Executive Summary

RKEC Projects Limited operates as a construction company in India.


Snowflake Analysis

Good value 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

Stable Share Price: RKEC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.8%

RKEC

0.1%

IN Construction

-0.5%

IN Market


1 Year Return

-13.5%

RKEC

-29.1%

IN Construction

1.6%

IN Market

Return vs Industry: RKEC exceeded the Indian Construction industry which returned -30.6% over the past year.

Return vs Market: RKEC underperformed the Indian Market which returned 1.4% over the past year.


Shareholder returns

RKECIndustryMarket
7 Day-3.8%0.1%-0.5%
30 Day-11.9%-2.5%2.4%
90 Day-1.5%13.8%18.6%
1 Year-9.5%-13.5%-28.2%-29.1%3.6%1.6%
3 Yearn/a-31.7%-34.6%-2.4%-7.0%
5 Yearn/a-24.5%-29.3%24.9%15.5%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RKEC (₹40.3) is trading below our estimate of fair value (₹450.13)

Significantly Below Fair Value: RKEC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RKEC is good value based on its PE Ratio (3.7x) compared to the IN Construction industry average (8.4x).

PE vs Market: RKEC is good value based on its PE Ratio (3.7x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

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 (0.8x) compared to the IN Construction industry average (0.5x).


Next Steps

Future Growth

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

22.0%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RKEC Projects has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has RKEC Projects performed over the past 5 years?

28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RKEC has a large one-off loss of ₹133.3M impacting its March 31 2020 financial results.

Growing Profit Margin: RKEC's current net profit margins (8.5%) are lower than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: RKEC's earnings have grown significantly by 28.2% per year over the past 5 years.

Accelerating Growth: RKEC's earnings growth over the past year (14.9%) is below its 5-year average (28.2% per year).

Earnings vs Industry: RKEC earnings growth over the past year (14.9%) exceeded the Construction industry -2.7%.


Return on Equity

High ROE: RKEC's Return on Equity (22.6%) is considered high.


Next Steps

Financial Health

How is RKEC Projects's financial position?


Financial Position Analysis

Short Term Liabilities: RKEC's short term assets (₹2.7B) exceed its short term liabilities (₹2.1B).

Long Term Liabilities: RKEC's short term assets (₹2.7B) exceed its long term liabilities (₹46.3M).


Debt to Equity History and Analysis

Debt Level: RKEC's debt to equity ratio (57.2%) is considered high.

Reducing Debt: RKEC's debt to equity ratio has increased from 46.8% to 57.2% over the past 5 years.

Debt Coverage: RKEC's debt is well covered by operating cash flow (61.5%).

Interest Coverage: RKEC's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Next Steps

Dividend

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

5.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RKEC's dividend (4.96%) is higher than the bottom 25% of dividend payers in the Indian market (0.67%).

High Dividend: RKEC's dividend (4.96%) is in the top 25% of dividend payers in the Indian market (2.78%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RKEC has been paying a dividend for less than 10 years.

Growing Dividend: RKEC has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.6%), 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

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average board tenure


CEO

Garapati Radhakrishna

no data

Tenure

₹16,000,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Garapati's total compensation ($USD213.55K) is above average for companies of similar size in the Indian market ($USD49.49K).

Compensation vs Earnings: Insufficient data to compare Garapati's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Garapati Radhakrishna
Chairman & MDno data₹16.00m73.52%
₹ 710.8m
Garapati Devi
Whole Time Director3.75yrs₹16.00m0.24%
₹ 2.3m
G. Rammohan
Director of Projects & Whole-time Director1.42yrsno datano data
Satish Soni
Independent Directorno data₹125.00kno data
Lucas Thalakala
Independent Directorno data₹100.00kno data
Gudapati Ratnam
Director4.75yrsno datano data
J Rao
Independent Director1yrno datano data

2.6yrs

Average Tenure

56yo

Average Age

Experienced Board: RKEC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹966.821m
  • 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 Analysis2020/08/04 13:04
End of Day Share Price2020/08/04 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.