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RITES Ltd. (IN:RITES)
:RITES
India Market
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RITES Ltd. (RITES) AI Stock Analysis

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IN:RITES

RITES Ltd.

(RITES)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
₹258.00
▲(4.90% Upside)
Action:Upgraded
Date:07/02/26
The score is driven primarily by strong financial quality (very low leverage and solid profitability history), tempered by softer recent earnings/margins and volatile cash-flow patterns. Technically, indicators are mixed with weak momentum signals despite price holding above key moving averages. Valuation is neither cheap nor extreme, with the dividend yield helping offset a higher P/E.
Positive Factors
Very low leverage
Extremely low leverage provides durable financial flexibility: it reduces solvency risk, supports bidding on large public projects, and allows the company to absorb project timing swings without needing frequent external financing, sustaining long-term resilience.
Negative Factors
Choppy revenue growth
Irregular revenue trajectories reflect uneven project award and execution cycles inherent in project-driven infrastructure work; this limits visibility into sustained top-line expansion and makes multi-period forecasting, staffing and capacity planning less reliable.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Extremely low leverage provides durable financial flexibility: it reduces solvency risk, supports bidding on large public projects, and allows the company to absorb project timing swings without needing frequent external financing, sustaining long-term resilience.
Read all positive factors

RITES Ltd. (RITES) vs. iShares MSCI India ETF (INDA)

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 providing fee-based professional services and executing projects on behalf of clients. Its key revenue streams typically include: (1) Consultancy fees: income earned from advisory and engineering services such as feasib...

RITES Ltd. Financial Statement Overview

Summary
Strong overall fundamentals anchored by an exceptionally low-leverage balance sheet (debt-to-equity near zero) and historically respectable ROE (mid-teens to ~20%), supporting financial resilience. Offsetting this, profitability has softened from the FY2023 peak (EBIT and net income stepped down in FY2024–FY2025) and revenue growth has been uneven. Free cash flow is consistently positive but operating/FCF volatility (notably weaker OCF in FY2026 vs FY2025) adds working-capital execution risk.
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
67
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue22.30B24.15B22.18B24.53B26.28B26.62B
Gross Profit8.64B6.48B6.83B8.23B9.43B8.96B
EBITDA5.76B6.78B5.09B6.38B7.39B7.19B
Net Income4.11B4.10B3.85B4.55B5.42B5.16B
Balance Sheet
Total Assets60.65B59.26B61.19B56.61B59.72B58.22B
Cash, Cash Equivalents and Short-Term Investments29.25B28.47B9.60B31.38B34.71B33.74B
Total Debt78.40M65.90M90.30M80.00M54.20M275.90M
Total Liabilities33.18B31.32B33.70B29.41B32.53B32.28B
Stockholders Equity26.34B26.81B26.40B26.09B26.04B24.89B
Cash Flow
Free Cash Flow41.90M3.44B5.04B2.94B4.24B1.68B
Operating Cash Flow384.40M4.06B6.37B4.32B5.60B3.10B
Investing Cash Flow2.53B-1.17B-2.19B110.70M-150.00M529.60M
Financing Cash Flow-2.11B-4.20B-4.05B-5.04B-4.83B-4.40B

RITES Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price245.95
Price Trends
50DMA
212.15
Positive
100DMA
209.49
Positive
200DMA
224.77
Positive
Market Momentum
MACD
2.82
Negative
RSI
62.23
Neutral
STOCH
47.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RITES, the sentiment is Positive. The current price of 245.95 is above the 20-day moving average (MA) of 209.63, above the 50-day MA of 212.15, and above the 200-day MA of 224.77, indicating a bullish trend. The MACD of 2.82 indicates Negative momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 47.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RITES.

RITES Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
₹104.82B26.373.24%8.91%6.54%
64
Neutral
₹125.73B26.660.80%43.33%9.64%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
51
Neutral
₹126.17B21.261.56%-15.69%-18.10%
50
Neutral
₹115.58B46.170.65%-4.78%-50.23%
48
Neutral
₹137.11B22.650.74%7.59%4.98%
48
Neutral
₹489.98B56.390.50%2.46%-31.69%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:RITES
RITES Ltd.
218.10
-58.04
-21.02%
IN:AFCONS
Afcons Infrastructure Limited
312.55
-113.68
-26.67%
IN:IRCON
IRCON International Ltd.
134.15
-62.59
-31.81%
IN:KEC
KEC International Ltd.
510.80
-382.61
-42.83%
IN:RVNL
Rail Vikas Nigam Ltd.
235.00
-153.10
-39.45%
IN:TECHNOE
Techno Electric & Engineering Company Limited
1,081.05
-484.41
-30.94%

RITES Ltd. Corporate Events

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...
RITES Announces Liquidation of Metro Joint Venture MMG
Apr 13, 2026
RITES Ltd. has announced that MMG-Metro Management Group Limited, a joint venture formed with Delhi Metro Rail Corporation and Israeli firm Poran Shrem Engineering and Appraisal, has been liquidated. The closure indicates the winding up of this sp...
RITES reshuffles senior leadership at East Coast regional project office
Apr 10, 2026
RITES Ltd. has announced a change in its senior management overseeing the East Coast Region Project Office in Bhubaneswar. Senior civil engineering executive Subhra Jyoti Mandal, currently GGM/Civil, will take over as Additional Regional Head unti...
RITES reshuffles senior management to bolster metro and southern region operations
Apr 8, 2026
RITES Ltd. has announced changes in its senior management, repositioning key leaders within its infrastructure verticals. Mrs. Shobhana Palli, a civil engineer with over 31 years of experience at the company, has been moved from her role as GGM/Ci...
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.Date of analysis: Jul 02, 2026