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

With RITES's revenue expected to be lower than the previous year, investors may become cautious. Declining revenues often negatively impact the bottom line, reducing profitability and raising concerns among investors about the company's ability to maintain strong financial performance moving forward.

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

RITES's current ratio of 1.532, indicating that the company can meet its short-term debt obligations with ease. This high liquidity level is a positive sign, as RITES has enough cash and current assets to handle its immediate liabilities comfortably.
RITES Limited's Forward PE is at a healthy level, indicating that the stock price is well-positioned relative to its earnings. With the stock not being overvalued, there remains room for future growth, suggesting a balanced opportunity for investors seeking potential upside.
RITES Limited's low growth in earnings and revenue indicates a potential decline in profits. This suggests that the company could be facing financial challenges, making it harder to sustain its current profit margins.
Positive gross and operating margins for RITES suggest that the company is operating profitably. These margins highlight RITES's efficiency in managing costs while maintaining healthy revenue streams, contributing to its overall financial strength.
RITES Limited's forward EPS surpassing its trailing EPS signals that the company is anticipated to be more profitable this year than last. This growth expectation highlights RITES Limited's potential for increased earnings and a stronger financial performance in the upcoming 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


With analysts showing a buy bias for RITES, investors may be more inclined to see the stock as an attractive investment. The favorable outlook could spur increased interest, positioning RITES as a safe and profitable place for investors to allocate their funds and seek growth.