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RITES Ltd.
(RITES)
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Rating:67Neutral
Price Target:
₹227.00
▲(6.20% Upside)
Action:Reiterated
Date:10/01/26
The score is anchored by strong financial performance—especially the very low leverage and solid balance sheet—offset by softer recent earnings trends and volatile cash flows. Technical indicators are mixed to mildly weak (negative MACD and trading below key medium/long-term moving averages), while valuation is supported by the dividend yield but not especially cheap on P/E.
Positive Factors
Very low leverage
Near-zero leverage gives RITES substantial financial flexibility because limited debt reduces solvency and refinancing pressure. A strong equity base can support continued investment, dividends, or project execution while improving resilience if infrastructure demand or contract timing weakens.
Negative Factors
Profitability has softened
The decline in EBIT and net income from the FY2023 peak indicates that recent earnings power has not sustained its earlier high point. If this moderation persists, it could reduce funds available for reinvestment and make future profit growth more dependent on winning new contracts.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Near-zero leverage gives RITES substantial financial flexibility because limited debt reduces solvency and refinancing pressure. A strong equity base can support continued investment, dividends, or project execution while improving resilience if infrastructure demand or contract timing weakens.
Read all positive factors
RITES Ltd. (RITES) vs. iShares MSCI India ETF (INDA)
Market Cap
₹100.78B
Dividend Yield3.84%
Average Volume (3M)138.99K
Price to Earnings (P/E)24.3
Beta (1Y)1.82
Revenue Growth10.62%
EPS Growth8.14%
CountryIN
Employees1,765
SectorGeneral
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)8.67
Shares Outstanding480,603,760
10 Day Avg. Volume364,193
30 Day Avg. Volume138,990
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)9.87
Revenue Forecast (FY)₹28.47B
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 | 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 | 5.09B | 6.38B | 7.39B | 7.19B |
| Net Income | 4.17B | 4.10B | 3.85B | 4.55B | 5.42B | 5.16B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 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 | 0.00 | 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
Positive
213.75
Price Trends
212.06
Negative
209.99
Negative
211.52
Negative
Market Momentum
-2.75
Negative
53.63
Neutral
45.54
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 213.75 is above the 20-day moving average (MA) of 205.37, above the 50-day MA of 212.06, and above the 200-day MA of 211.52, indicating a neutral trend. The MACD of -2.75 indicates Negative momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 45.54 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ₹100.78B | 24.34 | ― | 3.84% | 10.62% | 8.14% | |
64 Neutral | ₹116.03B | 27.01 | ― | 0.70% | 38.72% | -6.77% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ₹103.69B | 19.87 | ― | 1.72% | -9.92% | -21.60% | |
50 Neutral | ₹410.75B | 45.71 | ― | 0.87% | 5.40% | -24.53% | |
49 Neutral | ₹99.13B | 17.95 | ― | 1.48% | 5.14% | -9.35% | |
44 Neutral | ₹89.24B | 62.05 | ― | 0.82% | -11.87% | -73.37% |
* General Sector Average
IN:RITES
RITES Ltd.
209.70
-33.33
-13.71%
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242.65
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110.25
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372.40
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-56.06%
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197.00
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997.65
-347.07
-25.81%
RITES Ltd. Corporate Events
RITES to Hold Investor Meet with FYERS Asset Management on Sept 29
Sep 24, 2026
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 avail...
RITES Ltd. Gets CAG-Appointed Statutory Auditor for FY 2026-27
Sep 8, 2026
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 gov...
RITES to Advise HPCL on Rail Siding Infrastructure Under New MoU
Aug 7, 2026
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 de...
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...
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.