RITES - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📈 Positive

• 📘 Strong fundamentals: ROCE of 20.0% and ROE of 15.1% indicate efficient capital deployment.
• 💰 Dividend yield of 3.03% adds attractive passive income potential.
• 📉 Debt-free balance sheet (debt-to-equity ratio of 0.00) enhances financial stability.
• 📈 EPS of ₹7.95 and consistent PAT (₹66.6 Cr.) support earnings reliability.
• 📈 Volume (13.8 lakh) is significantly above 1-week average (5.8 lakh), indicating strong market interest.

⚠️ Limitation

• 📉 Price is below both DMA 50 (₹254) and DMA 200 (₹263), indicating short-term technical weakness.
• 📉 RSI at 45.1 and MACD at -2.58 suggest neutral-to-weak momentum.
• 📉 P/E of 31.4 vs industry P/E of 22.2 signals premium valuation.
• 📉 PEG ratio of -3.71 reflects negative growth outlook.
• 📉 PAT dropped significantly from ₹134 Cr. to ₹66.6 Cr. QoQ, showing earnings volatility.

🚫 Company Negative News

• 📉 Analysts have expressed concern over the sharp decline in quarterly profits and potential delays in project execution.

✅ Company Positive News

• 🚆 RITES continues to benefit from government infrastructure spending and railway modernization initiatives.
• 📈 Strong order book and export opportunities support long-term growth visibility.

🏦 Industry

• 🏗️ Operates in the engineering consultancy and transport infrastructure sector, which is cyclical but aligned with public investment trends.
• 📊 Industry P/E of 22.2 reflects moderate valuation and growth expectations.

🧾 Conclusion

• 📉 RITES is fundamentally sound with strong institutional interest and dividend yield, but currently facing technical and earnings headwinds.
• 📍 Optimal entry: ₹240–₹245 (near support and below DMA 50).
• 🚪 Exit if held: ₹260–₹265 (near DMA 200 and resistance zone) unless momentum strengthens.
• ⚠️ Suitable for swing trading with moderate risk and close monitoring of trend reversal signals and earnings updates.

I can also compare RITES’ swing setup with IRCON or RVNL to help you identify relative strength opportunities.