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RITES Ltd.
(RITES)
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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)
Market Cap
₹104.82B
Dividend Yield3.24%
Average Volume (3M)169.49K
Price to Earnings (P/E)26.4
Beta (1Y)1.91
Revenue Growth8.91%
EPS Growth6.54%
CountryIN
Employees1,809
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)8.55
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)₹28.76B
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
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.30B | 24.15B | 22.18B | 24.53B | 26.28B | 26.62B |
| Gross Profit | 8.64B | 6.48B | 6.83B | 8.23B | 9.43B | 8.96B |
| EBITDA | 5.76B | 6.78B | 5.09B | 6.38B | 7.39B | 7.19B |
| Net Income | 4.11B | 4.10B | 3.85B | 4.55B | 5.42B | 5.16B |
Balance Sheet | ||||||
| Total Assets | 60.65B | 59.26B | 61.19B | 56.61B | 59.72B | 58.22B |
| Cash, Cash Equivalents and Short-Term Investments | 29.25B | 28.47B | 9.60B | 31.38B | 34.71B | 33.74B |
| Total Debt | 78.40M | 65.90M | 90.30M | 80.00M | 54.20M | 275.90M |
| Total Liabilities | 33.18B | 31.32B | 33.70B | 29.41B | 32.53B | 32.28B |
| Stockholders Equity | 26.34B | 26.81B | 26.40B | 26.09B | 26.04B | 24.89B |
Cash Flow | ||||||
| Free Cash Flow | 41.90M | 3.44B | 5.04B | 2.94B | 4.24B | 1.68B |
| Operating Cash Flow | 384.40M | 4.06B | 6.37B | 4.32B | 5.60B | 3.10B |
| Investing Cash Flow | 2.53B | -1.17B | -2.19B | 110.70M | -150.00M | 529.60M |
| Financing Cash Flow | -2.11B | -4.20B | -4.05B | -5.04B | -4.83B | -4.40B |
RITES Ltd. Technical Analysis
Positive
245.95
Price Trends
212.15
Positive
209.49
Positive
224.77
Positive
Market Momentum
2.82
Negative
62.23
Neutral
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹104.82B | 26.37 | ― | 3.24% | 8.91% | 6.54% | |
64 Neutral | ₹125.73B | 26.66 | ― | 0.80% | 43.33% | 9.64% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | ₹126.17B | 21.26 | ― | 1.56% | -15.69% | -18.10% | |
50 Neutral | ₹115.58B | 46.17 | ― | 0.65% | -4.78% | -50.23% | |
48 Neutral | ₹137.11B | 22.65 | ― | 0.74% | 7.59% | 4.98% | |
48 Neutral | ₹489.98B | 56.39 | ― | 0.50% | 2.46% | -31.69% |
* Industrials Sector Average
IN:RITES
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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.