RITES - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.2

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📊 Fundamental Analysis Report

• Stock Code: RITES
• Market Cap: ₹11,799 Cr
• Current Price: ₹246
• 52W High/Low: ₹316 / ₹192
• EPS: ₹7.95
• Stock P/E: 30.8 vs Industry P/E: 22.1 ❗
• PEG Ratio: -3.65 ❗ (Negative PEG indicates unreliable growth)
• Book Value: ₹52.7 | P/B Ratio: ~4.67 ❗
• ROE: 15.1% | ROCE: 20.0% 🔶
• Debt to Equity: 0.00 🟢 (Debt-Free)
• Dividend Yield: 3.06% 💰
• Quarterly PAT: ₹66.6 Cr (↓50.3%)
• RSI: 43.4 | MACD: -3.03 📉

✅ Positive

• Debt-free balance sheet enhances financial resilience and operational flexibility.
• Strong ROE and ROCE reflect efficient capital deployment and profitability.
• Attractive dividend yield of 3.06% supports income-focused investors.
• FII and DII holdings increased slightly, indicating stable institutional interest.

⚠️ Limitation

• High P/E ratio compared to industry average suggests valuation premium.
• Negative PEG ratio and high P/B ratio raise concerns about growth and valuation.
• MACD and RSI indicate weak short-term momentum.
• Quarterly PAT halved, signaling earnings volatility.

📉 Company Negative News

• Quarterly PAT dropped from ₹134 Cr to ₹66.6 Cr.

📈 Company Positive News

• Stable YoY profit variation of 2.76% despite sequential decline.
• Strong order book and government-linked infrastructure projects support long-term visibility.

🏦 Industry

• RITES operates in engineering consultancy and transport infrastructure services.
• Industry P/E of 22.1 is lower than RITES, suggesting a valuation premium.
• Sector benefits from public investment in railways, highways, and urban mobility.

🧭 Conclusion

• Entry Zone: ₹235–₹245 (near RSI neutral and technical support)
• Long-Term View: Strong fundamentals and dividend yield make RITES a solid long-term hold. Accumulate on dips while monitoring earnings consistency.