RITES - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | RITES | Market Cap | 9,166 Cr. | Current Price | 191 ₹ | High / Low | 316 ₹ |
| Stock P/E | 23.0 | Book Value | 52.4 ₹ | Dividend Yield | 3.96 % | ROCE | 20.0 % |
| ROE | 15.1 % | Face Value | 10.0 ₹ | DMA 50 | 215 ₹ | DMA 200 | 239 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | -0.03 % | PAT Qtr | 95.5 Cr. | PAT Prev Qtr | 102 Cr. |
| RSI | 32.8 | MACD | -7.61 | Volume | 3,81,699 | Avg Vol 1Wk | 5,46,344 |
| Low price | 188 ₹ | High price | 316 ₹ | PEG Ratio | -2.72 | Debt to equity | 0.00 |
| 52w Index | 1.85 % | Qtr Profit Var | 0.55 % | EPS | 8.30 ₹ | Industry PE | 15.5 |
📊 RITES Ltd shows decent fundamentals but weak technical indicators, making it a cautious candidate for swing trading. The RSI at 32.8 indicates oversold conditions, while MACD (-7.61) confirms bearish momentum. The stock is trading below both its 50 DMA (215 ₹) and 200 DMA (239 ₹), signaling short-term weakness. Valuation is slightly high with a P/E of 23.0 compared to industry average of 15.5, though strong ROCE (20.0%) and dividend yield (3.96%) provide support.
💡 Optimal Entry Price: Around 185–195 ₹ (near current support)
💡 Exit Strategy (if already holding): Consider exiting near 210–215 ₹ (50 DMA resistance) unless momentum strengthens.
🌟 Positive
- Strong ROCE (20.0%) and ROE (15.1%) indicate efficient capital use.
- Debt-free balance sheet (0.00 debt-to-equity).
- Dividend yield of 3.96% provides steady income.
- Quarterly PAT of 95.5 Cr. shows consistent profitability.
⚠️ Limitation
- P/E ratio (23.0) higher than industry average (15.5), suggesting overvaluation.
- Quarterly PAT declined slightly (95.5 Cr. vs 102 Cr.).
- Negative PEG ratio (-2.72) indicates weak growth prospects.
- Stock trading below both 50 DMA and 200 DMA.
📉 Company Negative News
- Bearish technical indicators: RSI oversold and MACD negative.
- Stock underperforming relative to recent highs (316 ₹).
- Institutional holdings declined slightly (FII -0.05%, DII -0.03%).
📈 Company Positive News
- Debt-free balance sheet ensures financial resilience.
- Dividend yield supports investor confidence.
- Quarterly profit variation of 0.55% shows stability despite decline.
🏭 Industry
- Industry P/E at 15.5, while RITES trades at a premium (23.0).
- Engineering and infrastructure consulting sector benefits from government projects.
- Competition remains strong, requiring consistent project execution.
✅ Conclusion
RITES Ltd is fundamentally stable with strong ROCE and dividend yield but technically weak, making it a cautious swing trade candidate. Entry near 185–195 ₹ is favorable, with an exit target around 210–215 ₹. Traders should remain cautious due to oversold conditions and weak momentum, while long-term investors may hold for steady dividends and sectoral growth potential.