Overall Fundamental outlook

Business Operations:

Sector: Industrials
Industry: Engineering & Construction

RITES Limited, together with its subsidiaries, provides design, engineering consultancy, and project management services in the field of railways, highways, airports, metros, ports, ropeways, urban transport, inland waterways, and renewable energy. The company operates through five segments: Consultancy Services; Leasing of Railway Rolling Stock & Equipments; Export of Rolling Stock, Equipments and Spares; Turnkey Construction Projects; and Power Generation. It is involved in the engineering design and survey, feasibility studies, detailed design and consultancy, project management consultancy, technical audit, third party inspection, quality assurance, construction supervision, and leasing and export of locomotives and rolling stock; turnkey construction; and maintenance and operational facilities such as smart yards, coaching, and freight maintenance depots. The company also constructs railway workshops, track doubling /tripling/quadruplicating, new/additional railway line, railway electrification, redevelopment of railway stations, institutional buildings, wind, solar and other renewable energy projects on a turnkey basis; civil engineering works; and generates power from windmills and solar energy plants. In addition, it offers services in the field of road/railway tunnels engineering, urban engineering, electrical engineering, information technology, transaction, advisory, procurement, railway electrification, rolling stock design, railway equipment, signaling & telecommunications, surveys, and training programs. The company serves central/state governments, public sector undertakings, large corporations, and private enterprises in India, Asia, Africa, and internationally. RITES Limited was incorporated in 1974 and is based in Gurugram, India.

Revenue projections:

Revenue projections for RITES
Revenue projections for RITES

RITES Limited's revenue projections indicate a decrease from the prior year, which may make investors hesitant. A revenue decline could harm the company's bottom line, prompting investors to be more careful, as lower earnings often signal potential issues with profitability and future performance.

Financial Ratios:

currentRatio 1.532000
forwardPE 20.039062
debtToEquity 0.328000
earningsGrowth 0.052000
revenueGrowth -0.043000
grossMargins 0.308620
operatingMargins 0.274310
trailingEps 8.020000
forwardEps 11.770000

With a current ratio of 1.532, RITES Limited has the liquidity needed to easily service its short-term debt. The company's cash reserves and current assets are sufficient, indicating that RITES Limited is in a strong position to meet its immediate financial obligations without difficulty.
RITES's Forward PE is well-positioned, indicating the stock price is favorable compared to its earnings. This suggests the stock is not overpriced and offers room for growth, making it an attractive option for investors looking for future value appreciation.
RITES's low growth in earnings and revenue indicates that profits could shrink. This signals potential financial difficulties for the company, suggesting that its profitability might be under pressure.
RITES Limited's positive gross and operating margins indicate the company's ability to operate profitably. These margins reflect strong financial management, with efficient cost control contributing to sustained profitability and a solid financial outlook.
RITES's forward EPS exceeding its trailing EPS means the company is expected to be more profitable this year than last. This suggests an upward trend in earnings, with forecasts indicating that RITES's financial performance will improve in the current financial year.

Price projections:

Price projections for RITES
Price projections for RITES

RITES's price has consistently remained near the lower edge of projections, suggesting that it is not fully meeting market expectations. This could indicate a need for improved performance or strategies to boost investor confidence.

Recommendation changes over time:

Recommendations trend for RITES
Recommendations trend for RITES


Analysts' buy bias toward RITES suggests the stock is seen as a solid investment, potentially motivating investors to consider it for their portfolios. With this positive outlook, RITES is likely to be viewed as a secure place to allocate funds, driving further interest in the stock.