RITES Ltd. (RITES) AI Stock Analysis

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RITES Ltd.

(NSE:RITES)

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Rating:67Neutral

Price Target:INR 205.00▲(4.35% 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 leverageNear-zero leverage gives RITES substantial financial flexibility to withstand project timing fluctuations and fund operations without heavy borrowing. The large equity base also reduces solvency risk, supports resilience through infrastructure cycles, and preserves capacity for future investment or shareholder distributions.

Negative Factors

Profitability has softenedThe decline in EBIT and net income from the FY2023 peak indicates that recent earnings power has moderated despite still-healthy margins. If this softer profitability persists, it could reduce internally generated capital, constrain returns, and make future performance more dependent on securing favorable project awards.

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

Market Cap: INR 94.30B
Dividend Yield: 4.10%
Average Volume (3M): 111.38K
Price to Earnings (P/E): 22.7
Beta (1Y): 1.74
Revenue Growth: 10.59%
EPS Growth: -1.40%
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

Strong overall financial quality driven by an exceptionally conservative balance sheet (near-zero leverage and solid equity base). Profitability remains healthy but has softened from the FY2023 peak, and revenue/cash flow have been uneven with notable year-to-year volatility, which tempers the score.

Income Statement

72Positive

Balance Sheet

90Very Positive

Cash Flow

67Positive

Financial statement breakdown
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

Technical Analysis SentimentNegative

Last Price196.45

Price Trends

50DMA203.29Negative

100DMA209.23Negative

200DMA207.97Negative

Market Momentum

MACD-2.80Negative

RSI47.62Neutral

STOCH70.47Neutral

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 196.45 is below the 20-day moving average (MA) of 197.49, below the 50-day MA of 203.29, and below the 200-day MA of 207.97, indicating a bearish trend. The MACD of -2.80 indicates Negative momentum. The RSI at 47.62 is Neutral, neither overbought nor oversold. The STOCH value of 70.47 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

UnderperformOutperform

Sector (55)

Financial Indicators

IN:RITES against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:RITES	67Neutral	INR 94.70B	22.67	―	4.10%	10.59%	-1.40%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:TECHNOE	55Neutral	INR 103.02B	25.44	―	0.74%	38.72%	-6.77%
IN:KEC	53Neutral	INR 85.54B	20.76	―	1.67%	-1.94%	-38.13%
IN:RVNL	45Neutral	INR 398.66B	44.94	―	0.88%	5.40%	-24.53%
IN:AFCONS	38Underperform	INR 77.68B	101.12	―	0.91%	-14.83%	-83.97%
IN:IRCON	36Underperform	INR 97.17B	20.57	―	1.78%	-2.58%	-18.78%

* General Sector Average

Performance Comparison

IN:RITES and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:RITES	RITES Ltd.	196.45	-37.56	-16.05%
IN:AFCONS	Afcons Infrastructure Limited	219.15	-219.90	-50.09%
IN:IRCON	IRCON International Ltd.	106.67	-54.70	-33.90%
IN:KEC	KEC International Ltd.	329.80	-420.81	-56.06%
IN:RVNL	Rail Vikas Nigam Ltd.	193.50	-122.57	-38.78%
IN:TECHNOE	Techno Electric & Engineering Company Limited	941.40	-333.62	-26.17%

RITES Ltd. Corporate Events

RITES Discloses Independent ESG Ratings Assigned by CRISIL

Oct 9, 2026

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

Oct 7, 2026

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

Oct 6, 2026

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

Oct 4, 2026

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

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 availabl...

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 govern...

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 deliv...

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: Oct 01, 2026

RITES Ltd. AI Stock Analysis