Want to see IN:RITES full AI Analyst Report?
Top Page
RITES Ltd.
(RITES)
Select Model
Select Model
Rating:72Outperform
Price Target:
₹262.00
▲(22.57% Upside)
Action:Upgraded
Date:07/08/26
The score is driven primarily by strong financial quality—especially an exceptionally conservative balance sheet—alongside solid (though recently softened) profitability. Technicals are supportive with the price above major moving averages and neutral momentum. Valuation is the main constraint, with a relatively high P/E only partly balanced by the dividend yield.
Positive Factors
Extremely conservative balance sheet
Very low leverage and a large equity base provide durable financial flexibility. This reduces solvency risk, supports bidding on large public projects, permits funding volatility in project cash flows without distress, and underpins capital allocation optionality over months.
Negative Factors
Choppy revenue and softer earnings
Uneven revenue and reduced earnings from earlier highs reflect sensitivity to contract timing and project cadence. This cyclicality limits visibility on sustainable growth and makes multi-quarter earnings trajectories reliant on discrete contract awards and execution momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Extremely conservative balance sheet
Very low leverage and a large equity base provide durable financial flexibility. This reduces solvency risk, supports bidding on large public projects, permits funding volatility in project cash flows without distress, and underpins capital allocation optionality over months.
Read all positive factors
RITES Ltd. (RITES) vs. iShares MSCI India ETF (INDA)
Market Cap
₹104.75B
Dividend Yield3.66%
Average Volume (3M)169.49K
Price to Earnings (P/E)25.1
Beta (1Y)1.84
Revenue Growth8.91%
EPS Growth6.54%
CountryIN
Employees1,809
SectorGeneral
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)8.53
Shares Outstanding480,603,760
10 Day Avg. Volume47,035
30 Day Avg. Volume169,494
Financial Highlights & Ratios
PEG Ratio3.11
Price to Book (P/B)3.15
Price to Sales (P/S)3.49
P/FCF Ratio24.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)9.54
Revenue Forecast (FY)₹28.73B
RITES Ltd. Business Overview & Revenue Model
Company Description
Headquartered in Gurugram, India, and established in 1974, RITES Limited is a comprehensive provider of consultancy, engineering, and project management services across a broad spectrum of infrastructure sectors. These include railways, highways, ...
How the Company Makes Money
RITES makes money mainly by charging fees and contract revenues for professional services and execution work across transport and infrastructure projects. Key revenue streams typically include: (1) Consultancy and project management services: RITE...
RITES Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
67
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.15B | 22.18B | 24.53B | 26.28B | 26.62B |
| Gross Profit | 6.48B | 6.83B | 8.23B | 9.43B | 8.96B |
| EBITDA | 6.78B | 5.09B | 6.38B | 7.39B | 7.19B |
| Net Income | 4.10B | 3.85B | 4.55B | 5.42B | 5.16B |
Balance Sheet | |||||
| Total Assets | 59.26B | 61.19B | 56.61B | 59.72B | 58.22B |
| Cash, Cash Equivalents and Short-Term Investments | 28.47B | 9.60B | 31.38B | 34.71B | 33.74B |
| Total Debt | 65.90M | 90.30M | 80.00M | 54.20M | 275.90M |
| Total Liabilities | 31.32B | 33.70B | 29.41B | 32.53B | 32.28B |
| Stockholders Equity | 26.81B | 26.40B | 26.09B | 26.04B | 24.89B |
Cash Flow | |||||
| Free Cash Flow | 3.44B | 5.04B | 2.94B | 4.24B | 1.68B |
| Operating Cash Flow | 4.06B | 6.37B | 4.32B | 5.60B | 3.10B |
| Investing Cash Flow | -1.17B | -2.19B | 110.70M | -150.00M | 529.60M |
| Financing Cash Flow | -4.20B | -4.05B | -5.04B | -4.83B | -4.40B |
RITES Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹104.75B | 25.10 | ― | 3.67% | 8.91% | 6.54% | |
64 Neutral | ₹112.46B | 24.06 | ― | 0.91% | 43.33% | 9.64% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ₹118.18B | 19.90 | ― | 1.74% | -15.69% | -18.10% | |
50 Neutral | ₹100.52B | 39.82 | ― | 0.70% | -4.78% | -50.18% | |
48 Neutral | ₹124.83B | 20.61 | ― | 0.74% | 7.59% | 4.99% | |
48 Neutral | ₹464.75B | 53.69 | ― | 1.21% | 2.46% | -31.69% |
* General Sector Average
IN:RITES
RITES Ltd.
214.25
-36.98
-14.72%
IN:AFCONS
Afcons Infrastructure Limited
271.25
-131.25
-32.61%
IN:IRCON
IRCON International Ltd.
126.00
-49.68
-28.28%
IN:KEC
KEC International Ltd.
469.05
-364.15
-43.70%
IN:RVNL
Rail Vikas Nigam Ltd.
225.45
-124.71
-35.62%
IN:TECHNOE
Techno Electric & Engineering Company Limited
980.15
-446.82
-31.31%
RITES Ltd. Corporate Events
RITES Secures $35.8 Million South African Locomotive Order
Jul 6, 2026
RITES Ltd. has received acceptance of its offer from South Africa’s Volantis Asset Finance (Pty) Ltd. for the supply and commissioning of 4,000 HP Cape Gauge diesel-electric locomotives. The deal, valued at USD 35.82 million, is structured a...
RITES Wins ₹175 Crore PMC Mandate for BBAU Campus Development
Jun 30, 2026
RITES Ltd. has secured a major project management consultancy mandate from Babasaheb Bhimrao Ambedkar University for planning, design and development of infrastructural facilities at the university’s campus. The contract, awarded by the dome...
RITES Gets Top Credit Ratings Reaffirmed on Rs 3,555 Crore Bank Facilities
Jun 27, 2026
RITES Limited has had its long-term and short-term credit ratings reaffirmed by Infomerics Valuation and Rating Limited, underscoring continued confidence in the company’s financial strength and operational performance. The agency maintained...
RITES denies undisclosed triggers behind surge in share trading volumes
Jun 8, 2026
RITES Ltd. has responded to a query from the National Stock Exchange of India regarding a sharp increase in trading volumes of its shares, stating that it has no undisclosed information or pending announcements that could explain the recent activi...
RITES appoints Railway Board executive Atul Singh as Government Nominee Director
Jun 5, 2026
RITES Ltd. has announced that its board has approved the appointment of Atul Singh as a part-time Government Nominee Director with effect from May 29, 2026, coinciding with the allotment of his Director Identification Number. Singh currently serve...
Exchange Seeks Clarification from RITES After Spike in Trading Volume
Jun 5, 2026
The stock of RITES Ltd. saw a significant increase in trading volume, prompting the stock exchange to seek clarification to ensure that investors have access to the latest relevant information. The exchange’s move underscores heightened mark...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.