RITES - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Rating: 3.6

📊 Core Financials & Returns

Return Ratios

ROCE at 20.8% and ROE at 14.7% — solid indicators of efficient capital deployment and profitability.

Earnings Snapshot

EPS at ₹8.01 with PAT growth of +5.24% QoQ — steady but not explosive.

PAT Qtr ₹133 Cr vs ₹100 Cr previous — good sequential rise, though not game-changing.

Debt Profile

Debt-to-Equity of 0.00 — fully debt-free, enhancing financial safety and flexibility.

Dividend Yield

At 4.38%, it's a strong passive income play — attractive for yield-hunters.

💰 Valuation Metrics & Sentiment

Metric Value Insight

P/E Ratio 32.8 Above industry PE (23.8) — priced for safety & income

P/B Ratio ~4.79 Premium valuation relative to assets

PEG Ratio –3.55 Negative — earnings growth expectation is soft or declining

RSI 31.8 Oversold zone — hints at possible technical bounce

MACD –3.61 Bearish setup — trend cautious

Price vs DMA ₹263 vs 50/200 DMA ₹273 / ₹271 Trading below trendlines — consolidation underway

Volume: Slightly below average → subdued interest or quiet accumulation.

52W Index: At 36.5% — low positioning vs high ₹386 offers recovery potential.

Institutional Behavior

FII marginal uptick (+0.14%)

DII slightly trimming (–0.02%) — essentially neutral stance

🚆 Business Model & Moat Analysis

Core Focus: Engineering consultancy, transport infrastructure, turnkey railway projects.

Strategic Positioning

Government-backed PSU — preferred vendor for Indian Railways & infrastructure projects.

Well-diversified across consultancy, exports, and EPC models.

Debt-free and dividend-friendly model provides downside cushion.

Risks

PEG suggests declining earnings growth outlook.

Execution delays or policy shifts could affect contract momentum.

📍 Entry Zone & Investment Strategy

Recommended Entry Range: ₹255–₹265 — near 52-week support and RSI bottoming zone.

Long-Term Guidance

Suited for income-focused portfolios seeking stable returns in infra space.

Moderate growth but high reliability — not a momentum rocket, but a dependable train.

Watch for earnings inflection, order book updates, and capital allocation shifts.

Want a performance map of RITES against IRCON, RVNL, or PSU infra peers? I can line them up by dividend yield, ROE, or valuation premiums and sketch a clean snapshot for strategic insights. Just tap in.

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