RITES Ltd. (RITES) AI Stock Analysis

• Market Cap: ₹104.27B
• Dividend Yield: 3.24%
• Average Volume (3M): 169.49K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 2.14
• Revenue Growth: -5.23%
• EPS Growth: 3.21%
• Country: IN
• Employees: 1,809
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.55
• Shares Outstanding: 480,603,760
• 10 Day Avg. Volume: 47,035
• 30 Day Avg. Volume: 169,494
• PEG Ratio: -1.85
• Price to Book (P/B): 4.19
• Price to Sales (P/S): 4.99
• P/FCF Ratio: 21.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹235.00 ▼(-4.45% Downside)
• Action: Reiterated Date: 10/09/25
• Date: Action: Reiterated 10/09/25

RITES Ltd. scores 64, driven by its strong financial performance and stable balance sheet. However, technical indicators suggest potential short-term weakness, and the high P/E ratio indicates possible overvaluation. The dividend yield offers some compensation for investors.

Positive Factors

Balance Sheet Strength

Low financial leverage and a strong equity ratio provide durable financial flexibility. This improves RITES' ability to bid and mobilize on large infrastructure projects, absorb payment delays from clients, and maintain investment capacity without stressing solvency over the next several quarters.

Operating Cash Generation

Consistently strong operating cash flow versus reported earnings indicates real cash conversion from consulting and inspection work. That cash generation supports working capital, project mobilisation, and dividend payouts, providing a durable buffer against cyclical revenue swings.

Margin Sustainability

Healthy gross and net margins reflect an efficient, fee-based services model with limited capital intensity. Margin resilience supports profitability across project cycles, enabling reinvestment in capabilities and sustaining returns even if top-line growth moderates over several quarters.

Negative Factors

Revenue Volatility

Observed revenue declines and fluctuations point to uneven project awards or slower execution. Persistent top-line weakness would reduce utilisation of technical staff, pressure margins via fixed-cost absorption, and limit organic growth runway over the next 2-6 months if not reversed.

Free Cash Flow Variability

Irregular free cash flow makes capital planning and dividend sustainability harder. Because contract billing and milestone receipts can be lumpy for infrastructure consultancy, FCF variability can constrain reinvestment, slow hiring for new projects, or force short-term financing needs.

Client Concentration / Government Dependence

High reliance on government and public-sector clients concentrates revenue risk around public budgets, award cycles and payment timelines. Policy shifts, slower public capex, or changes in procurement practices could materially affect project flow and sustain revenue pressure over several quarters.

RITES Ltd. Business Overview & Revenue Model

Company Description

RITES Limited, together with its subsidiaries, provides consultancy, engineering, and project management services in the field of railways, highways, airports, ports, ropeways, urban transport, inland waterways, and renewable energy. The company operates through four segments: Consultancy Services; Leasing of Railway Rolling Stock & Equipments; Export of Rolling Stock, Equipments and spares; and Turnkey Construction Projects. It is involved in the survey and feasibility studies, detailed design and engineering, project management consultancy, technical audit, third party inspection, quality assurance, construction supervision, and leasing and export of locomotives and rolling stock; 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; and civil construction 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, privatization and concession projects, 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, and Africa. RITES Limited was incorporated in 1974 and is based in Gurugram, India.

How the Company Makes Money

RITES generates revenue through multiple streams, primarily from consultancy services, project management, and engineering services related to transport infrastructure. The company earns fees for conducting feasibility studies, detailed project reports, and project management consultancy on various infrastructure projects. Additionally, RITES generates income from the manufacturing and supply of railway rolling stock, including locomotives and coaches, as well as providing maintenance and repair services. Significant partnerships with government bodies, state-owned enterprises, and international organizations contribute to its earnings, allowing RITES to undertake large-scale projects both domestically and internationally. The company also benefits from a growing demand for infrastructure development in emerging economies, enhancing its revenue potential.

RITES Ltd. Financial Statement Overview

Summary

RITES Ltd. has a strong financial position with solid profitability and a robust balance sheet. The company maintains healthy profit margins and low financial leverage, although revenue fluctuations and cash flow variability require attention.

Income Statement

RITES Ltd. has shown a mixed performance in recent years. While the revenue has faced some fluctuation, the company maintains healthy gross and net profit margins, indicative of operational efficiency. However, the recent decline in total revenue could be a concern if it continues.

Balance Sheet

The company demonstrates a solid balance sheet with a low debt-to-equity ratio, indicating low financial leverage. The equity ratio is strong, suggesting good financial stability. The company's ability to manage its liabilities effectively is a positive indicator of its financial health.

Cash Flow

RITES Ltd.'s cash flow statement shows a robust operating cash flow relative to net income, indicating good cash generation capability. However, variability in free cash flow growth requires attention, suggesting potential challenges in cash management or capital expenditures.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.22B	22.18B	24.53B	26.28B	26.62B	19.05B
Gross Profit	6.95B	6.83B	8.23B	9.43B	8.96B	6.67B
EBITDA	5.18B	5.09B	6.38B	7.39B	7.19B	5.44B
Net Income	3.86B	3.85B	4.55B	5.42B	5.16B	4.32B
Balance Sheet
Total Assets	0.00	61.19B	56.61B	59.72B	58.22B	58.33B
Cash, Cash Equivalents and Short-Term Investments	9.60B	9.60B	31.38B	34.71B	33.74B	34.74B
Total Debt	0.00	90.30M	80.00M	54.20M	275.90M	365.50M
Total Liabilities	-27.49B	33.70B	29.41B	32.53B	32.28B	33.53B
Stockholders Equity	27.49B	26.40B	26.09B	26.04B	24.89B	23.92B
Cash Flow
Free Cash Flow	0.00	5.04B	2.94B	4.24B	1.68B	4.36B
Operating Cash Flow	0.00	6.37B	4.32B	5.60B	3.10B	5.16B
Investing Cash Flow	0.00	-2.19B	110.70M	-150.00M	529.60M	1.83B
Financing Cash Flow	0.00	-4.05B	-5.04B	-4.83B	-4.40B	-7.08B

RITES Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 245.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RITES, the sentiment is Negative. The current price of 245.95 is above the 20-day moving average (MA) of 222.08, above the 50-day MA of 227.10, and below the 200-day MA of 247.98, indicating a bearish trend. The MACD of -2.20 indicates Positive momentum. The RSI at 40.76 is Neutral, neither overbought nor oversold. The STOCH value of 17.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RITES.

RITES Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRCON	65 Neutral	₹139.24B	22.89	―	1.56%	-13.85%	-34.81%
RITES	64 Neutral	₹104.27B	25.51	―	3.24%	-5.23%	3.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BEML	62 Neutral	₹141.38B	56.82	―	0.29%	-1.31%	3.61%
KEC	60 Neutral	₹157.16B	22.80	―	0.74%	12.21%	56.50%
TITAGARH	60 Neutral	₹98.91B	55.61	―	0.12%	-14.65%	-36.95%

RITES Ltd. Corporate Events

RITES Wins Award for Excellence in Sustainable Rail Engineering

RITES Limited, a key engineering consultancy and project management firm in the transport and infrastructure space with a strong rail-sector focus, continues to build its reputation around complex railway projects in India. The company has been honoured with the ‘Excellence in Sustainable Engineering for the Rail Sector’ award at the 7th Rail Analysis Innovation & Excellence Summit 2026 for its contribution to the Udhampur–Srinagar–Baramulla Railway Link, underscoring its capabilities in sustainable rail infrastructure and reinforcing its positioning as a leading player in environmentally responsible rail engineering, which may enhance its industry standing and stakeholder confidence.

RITES Ltd. Announces Senior Management Change

RITES Ltd. announced a change in its senior management with the cessation of Shri Shiv Ratan as Chief Vigilance Officer following the completion of his deputation tenure. The company acknowledged a delay in notifying the exchanges about this change and has taken steps to improve its internal processes to prevent future delays.