RITES - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | RITES | Market Cap | 10,738 Cr. | Current Price | 224 ₹ | High / Low | 316 ₹ |
| Stock P/E | 27.0 | Book Value | 52.4 ₹ | Dividend Yield | 3.37 % | ROCE | 20.0 % |
| ROE | 15.1 % | Face Value | 10.0 ₹ | DMA 50 | 232 ₹ | DMA 200 | 249 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | -0.03 % | PAT Qtr | 102 Cr. | PAT Prev Qtr | 66.6 Cr. |
| RSI | 45.8 | MACD | -3.67 | Volume | 7,84,075 | Avg Vol 1Wk | 9,28,843 |
| Low price | 192 ₹ | High price | 316 ₹ | PEG Ratio | -3.19 | Debt to equity | 0.00 |
| 52w Index | 25.6 % | Qtr Profit Var | 18.9 % | EPS | 8.29 ₹ | Industry PE | 17.1 |
📊 Analysis: RITES shows decent fundamentals with ROCE (20.0%) and ROE (15.1%), supported by a debt-free balance sheet. Dividend yield at 3.37% adds investor appeal. The current price (₹224) is below both 50 DMA (₹232) and 200 DMA (₹249), reflecting technical weakness. RSI at 45.8 suggests neutral-to-weak momentum, while MACD (-3.67) confirms bearish divergence. Quarterly PAT improved (₹66.6 Cr → ₹102 Cr), showing earnings growth, but PEG ratio (-3.19) indicates poor growth valuation. Overall, RITES is a cautious swing trade candidate with limited upside unless momentum improves.
💡 Optimal Entry Price: Around ₹215–₹220 (near support zone).
🚪 Exit Strategy: If already holding, consider booking profits near ₹240–₹245 (short-term resistance). Exit below ₹210 if weakness persists to protect capital.
✅ Positive
- Strong ROCE (20.0%) and ROE (15.1%).
- Debt-free balance sheet (Debt-to-equity 0.00).
- Dividend yield of 3.37% provides steady returns.
- Quarterly PAT growth of 18.9% shows operational improvement.
⚠️ Limitation
- Valuation premium (P/E 27.0 vs industry 17.1).
- Price trading below both 50 DMA and 200 DMA.
- MACD indicates bearish trend.
- PEG ratio (-3.19) signals poor growth valuation.
📉 Company Negative News
- Decline in institutional holdings (FII -0.05%, DII -0.03%).
- Weak 52-week index at 25.6% shows poor price performance.
📈 Company Positive News
- Quarterly PAT improved significantly (₹66.6 Cr → ₹102 Cr).
- Dividend yield supports investor confidence.
- Debt-free structure adds financial stability.
🏭 Industry
- Industry P/E at 17.1 highlights RITES’ premium valuation.
- Infrastructure and engineering sector benefits from government projects and railway expansion.
🔎 Conclusion
RITES is fundamentally stable with strong efficiency and zero debt, but technical weakness and premium valuation limit upside. It is a cautious swing trade candidate with entry near ₹215–₹220 and exit near ₹240–₹245. Risk management is essential due to bearish momentum and weak institutional support.