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 last year's performance, which could lead to investor caution. A fall in revenue is likely to negatively impact the company's profitability, causing concern for shareholders who may view this as a signal of declining financial health.

Financial Ratios:

currentRatio 1.587000
forwardPE 19.239357
debtToEquity 0.285000
earningsGrowth 0.342000
revenueGrowth 0.015000
grossMargins 0.329410
operatingMargins 0.205110
trailingEps 8.570000
forwardEps 11.770000

RITES Limited's current ratio of 1.587 highlights the company's solid liquidity, indicating that it can easily service its short-term debt. RITES Limited's ample cash reserves and current assets ensure that the company is well-positioned to meet its immediate financial liabilities.
RITES's Forward PE being in a good range suggests that its stock price is aligned well with earnings. The stock is not considered overpriced, offering room for future growth, which makes it an appealing investment opportunity with the potential for value appreciation.
With positive gross and operating margins, RITES demonstrates strong profitability. This reflects the company's ability to manage costs and maintain healthy profits, showcasing effective operational efficiency and financial stability.
RITES's forward EPS being higher than its trailing EPS indicates that the company is expected to achieve greater profitability this financial year. This suggests improving earnings and a stronger financial position compared to the previous year's performance.

Price projections:

Price projections for RITES
Price projections for RITES

The current valuation of RITES, compared to projections, does not highlight any specific risks or opportunities. This stable scenario may lead investors to adopt a wait-and-see approach as they monitor future developments for potential shifts in the market.

Recommendation changes over time:

Recommendations trend for RITES
Recommendations trend for RITES


Analysts' recent buy bias toward RITES suggests the stock is gaining favor as a strong investment choice. This optimism could drive more investors to see RITES as a smart place to invest, further bolstering confidence in the company's long-term growth and potential returns.