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Why Fundamental Investors Might Love RKEC Projects Limited (NSE:RKEC)

Simply Wall St

RKEC Projects Limited (NSE:RKEC) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of RKEC, it is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on RKEC Projects here.

Solid track record with adequate balance sheet

RKEC has a strong track record of performance. In the previous year, RKEC delivered an impressive double-digit return of 24%. Unsurprisingly, RKEC surpassed the Construction industry return of 10%, which gives us more confidence of the company's capacity to drive earnings going forward. RKEC's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that RKEC has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Debt funding requires timely payments on interest to lenders. RKEC’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.

NSEI:RKEC Income Statement, July 22nd 2019

Next Steps:

For RKEC Projects, I've compiled three pertinent aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for RKEC’s future growth? Take a look at our free research report of analyst consensus for RKEC’s outlook.
  2. Valuation: What is RKEC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether RKEC is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RKEC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.