The healthy pipeline of projects and potential long-term growth via infrastructure due to civil construction presented in the infrastructural portfolio brought RKEC Projects Limited to the forefront of share markets. The long-term investors in search of companies with a reasonable probability of exposure to the infrastructure sector look toward entities like RKEC, while the increase in government expenditure on infrastructure and a growing demand for development projects have been supporting the demand for execution in these areas.
Latest Presentations of RKEC Projects Stock Price
By October 2024, the stock price of RKEC Projects has increased roughly by ₹145.80. It has increased around 0.75% in the session so far.
Though the stock has witnessed decent growth in the year so far, this comes with both company-specific and sector-specific sentiments, associated with the infresh. RKEC is also witnessing buoyant growth in the infrastructure sector. Aggressive bidding for big-ticket government projects like roads, bridges, and marine works sustains its consistent performance in the stock market.
Growth Drivers for the RKEC projects share price
There are multiple factors that have been contributing to the growth of RKEC Projects share price, thus it has emerged as a stock with huge potential in the year 2024. Some of the key drivers that will change the respective stock performance are as follows:
- Government Infrastructure Push
No exception is Indian infrastructure either as the government looks at upgrading its public works and urban development. RKEC Projects that provide services under marine, road, and industrial projects shall benefit massively from this. Most business of RKEC has arrived from government agencies and PSUs giving these contracts. And with these on the anvil, revenue growth is likely to happen in the next year.
- b) Tactical Project Delivery
One other strength of RKEC is the fact that it is capable of completing its projects in time and in an efficient manner. Such an industry would be characterized by many delays, and the delivery record of this company would be a catalyst in consolidating investors’ confidence. Its under-constructed projects on ports, bridges, and irrigation are likely to constitute a massive source of revenue for the company in 2024 and would influence the RKEC Projects share price.
- c) Diversified portfolio.
RKEC offers an integrated portfolio of marine construction, transportation, and industrial infrastructure that can leverage various growth opportunities. Diversified portfolio This portfolio reduces sector-specific risk and puts the company in a position to benefit from a number of segments in the infrastructure industry.
Problems in Infrastructure Sector
There is, however, great promise with RKEC Projects, and enough has been written about its challenges that can bear upon its share price. Indeed, the infrastructure sector is set to grow; but enough hurdles face the sector that can affect stock performance from a short to medium-term perspective.
- a) Inflation of Raw Material Price:
Like most of the players in this industry, RKEC faces the inflation impact on raw materials bought, more particularly steel, cement, and all other construction materials. It will push up costs and increase the cost basis of projects and therefore its profitability. At this rate, if this increase in raw material costs does not slow down, it will start to pressure the company’s margins and, may also dampen the RKEC projects share price.
- Project and regulatory delays Another risk that may arise is that of the project getting delayed for RKEC. Regulatory clearances and other logistical issues are some reasons causing problems in land acquisition. Project delays increase costs and adversely affect cash flows, which could lead to stock price fluctuations.Â
Opening an Online Demat AccountÂ
Therefore, if you are an investor looking to invest in infrastructure stocks like RKEC, opening an online demat account shall be the prudent step. Most important of all, one of the principal advantages of holding shares electronically is the fact that one can keep track and maintain one’s shares online. The process of opening an online demat account is, however pretty hassle-free, and most of the sites promise instant account opening with minimal documentation. Opening a demat account can help you diversify into other stocks, including RKEC Projects, and monitor market trends so that you make more focused investment decisions.Â
ConclusionÂ
A host of factors promises that the RKEC projects share price is going to increase in 2024 on the back of government expenditure on infrastructure and its project strategy, along with its diversified portfolio. However, concerns still linger, awaiting the feedback from a couple of projects, along with the sudden rise in the cost of raw material. It’s time for investors to click and create a demat account online to track the dynamics of RKEC Projects and other infra stocks in the Indian share market.
