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RITES Ltd. (RITES) AI Stock Analysis
RITES Ltd.
(NSE:RITES)
RITES scores moderately. Its greatest strength is an exceptionally clean, virtually debt-free balance sheet with steady equity growth and adequate cash generation, providing meaningful downside protection. However, this is offset by a multi-year decline in revenue and net income alongside broad margin compression, with FY2026 projections pointing to recovery in sales but not profitability. Technicals are a drag — the price sits below all key moving averages with a negative MACD — though a depressed stochastic reading hints at a possible near-term bounce. Valuation is balanced: a somewhat full 24.1x P/E is cushioned by a healthy 3.84% dividend yield. Earnings call and corporate event data were unavailable and excluded, with their weight redistributed across the remaining components.
RITES Ltd. (RITES) vs. iShares MSCI India ETF (INDA)
- Market Cap
- INR 90.49B
- Dividend Yield
- 4.27%
- Average Volume (3M)
- 116.67K
- Price to Earnings (P/E)
- 21.7
- Beta (1Y)
- 1.75
- Revenue Growth
- 10.62%
- EPS Growth
- 8.14%
- Country
- India
- Employees
- 1,765
- Sector
- General
- Sector Strength
- 55
- Industry
- Engineering & Construction
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, air...
How the Company Makes Money
RITES makes money primarily by charging professional fees for consultancy and project services delivered to government agencies, public-sector undertakings, and other infrastructure owners/operators. A major revenue stream is consultancy and project...
RITES Ltd. Financial Statement Overview
Summary
RITES combines a fortress balance sheet (Balance Sheet score 82) — essentially debt-free with a debt-to-equity ratio of 0.003 and steadily growing equity of ₹26.4B — with weaker operating momentum (Income Statement score 52). Revenue has declined ~17% from ₹26.6B in FY2022 to ₹22.2B in FY2025, net income fell ~29% from its FY2023 peak, and margins compressed across gross (35.9% to 30.8%), EBITDA (28.1% to 22.9%) and net (20.6% to 17.4%) levels. Cash flow (score 65) is solid but lumpy, with FY2025 operating cash flow of ₹6.4B expected to pull back to ₹4.1B in FY2026 despite projected revenue growth, hinting at working capital absorption. Net-net, a financially sound, conservatively funded business in a period of earnings normalization.
Income Statement
52NeutralBalance Sheet
82Very PositiveCash Flow
65Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.58B | 24.15B | 22.18B | 24.53B | 26.28B | 26.62B |
| Gross Profit | 9.75B | 6.48B | 6.83B | 8.23B | 9.43B | 8.96B |
| EBITDA | 6.84B | 6.78B | 5.15B | 6.44B | 7.45B | 7.24B |
| Net Income | 4.17B | 4.10B | 3.85B | 4.55B | 5.42B | 5.16B |
Balance Sheet | ||||||
| Total Assets | 0 | 59.26B | 61.19B | 56.61B | 59.72B | 58.22B |
| Cash, Cash Equivalents and Short-Term Investments | 8.97B | 29.46B | 9.60B | 31.38B | 34.71B | 33.74B |
| Total Debt | 0 | 65.90M | 90.30M | 80.00M | 54.20M | 275.90M |
| Total Liabilities | -27.94B | 31.32B | 33.70B | 29.41B | 32.53B | 32.28B |
| Stockholders Equity | 27.94B | 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
Price Trends
Market Momentum
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 191.50 is below the 20-day moving average (MA) of 199.58, below the 50-day MA of 204.97, and below the 200-day MA of 208.67, indicating a bearish trend. The MACD of -3.53 indicates Positive momentum. The RSI at 38.23 is Neutral, neither overbought nor oversold. The STOCH value of 25.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RITES.
RITES Ltd. Peers Comparison
Overall Rating
- IN:RITES63Neutral
IN:TECHNOE60Neutral
IN:KEC52Neutral
IN:RVNL50Neutral
IN:AFCONS38Underperform
IN:IRCON36Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IN:RITES | 63Neutral | INR 90.59B | 21.72 | ― | 4.27% | 10.62% | 8.14% |
| IN:TECHNOE | 60Neutral | INR 96.55B | 22.38 | ― | 0.84% | 38.72% | -6.77% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| IN:KEC | 52Neutral | INR 87.75B | 15.85 | ― | 1.67% | 5.14% | -9.35% |
| IN:RVNL | 50Neutral | INR 374.89B | 41.69 | ― | 0.95% | 5.40% | -24.53% |
| IN:AFCONS | 38Underperform | INR 75.80B | 52.83 | ― | 0.97% | -11.87% | -73.37% |
| IN:IRCON | 36Underperform | INR 90.90B | 17.35 | ― | 1.97% | -9.92% | -21.60% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IN:RITES | RITES Ltd. | 188.50 | -51.93 | -21.60% | |
| IN:AFCONS | Afcons Infrastructure Limited | 206.10 | -235.68 | -53.35% | |
| IN:IRCON | IRCON International Ltd. | 96.65 | -69.06 | -41.67% | |
| IN:KEC | KEC International Ltd. | 329.65 | -469.74 | -58.76% | |
| IN:RVNL | Rail Vikas Nigam Ltd. | 179.80 | -143.92 | -44.46% | |
| IN:TECHNOE | Techno Electric & Engineering Company Limited | 830.15 | -464.93 | -35.90% |
RITES Ltd. Corporate Events
RITES Discloses Independent ESG Ratings Assigned by CRISIL
RITES Ltd., a transport infrastructure consultancy and engineering firm with a strong focus on railway projects, operates primarily as a government-linked enterprise serving public sector and institutional clients. Its business model relies on long-t...
RITES files SEBI Regulation 74(5) demat compliance certificate for Q2 FY27
RITES Ltd. has submitted to the NSE and BSE a compliance certificate under Regulation 74(5) of SEBI’s Depositories and Participants Regulations, 2018 for the quarter ended 30 September 2026. The filing, issued by its registrar and share transfe...
RITES strengthens board with appointment of independent director
RITES Ltd. has announced that the Ministry of Railways has appointed Dr. Sandeepa Malhotra as a Non-Official Independent Director on its Board, with the approval of the President of India, for a term of three years or until further orders. The compan...
RITES Gains ₹38.3 Crore Relief in Gujarat Tax Appeal
RITES Ltd. has received a favourable order from the Deputy Commissioner of State Tax (Appeal-1), Ahmedabad, related to a tax demand for the financial year 2019-20. The appellate authority has partially set aside the earlier demand issued by the State...
RITES to Hold Investor Meet with FYERS Asset Management on Sept 29
RITES Ltd. has notified the stock exchanges that it will conduct an investor meeting with FYERS Asset Management Private Limited on September 29, 2026, between 14:00 and 15:00 hours, in person.The company stated that only information already availabl...
RITES Ltd. Gets CAG-Appointed Statutory Auditor for FY 2026-27
RITES Ltd., a government-owned consultancy and engineering firm focused on transport and infrastructure projects, operates under a strict regulatory and audit environment due to its close association with public sector undertakings and various govern...
RITES to Advise HPCL on Rail Siding Infrastructure Under New MoU
RITES Ltd. has signed a Memorandum of Understanding with Hindustan Petroleum Corporation Ltd. to provide consultancy services for the development and upgradation of railway siding infrastructure across HPCL facilities. Under the MoU, RITES will deliv...
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: Oct 01, 2026