RITES - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | RITES | Market Cap | 10,496 Cr. | Current Price | 218 ₹ | High / Low | 316 ₹ |
| Stock P/E | 26.4 | Book Value | 52.4 ₹ | Dividend Yield | 3.46 % | ROCE | 20.0 % |
| ROE | 15.1 % | Face Value | 10.0 ₹ | DMA 50 | 233 ₹ | DMA 200 | 250 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | -0.03 % | PAT Qtr | 102 Cr. | PAT Prev Qtr | 66.6 Cr. |
| RSI | 39.8 | MACD | -3.88 | Volume | 18,83,709 | Avg Vol 1Wk | 9,97,049 |
| Low price | 192 ₹ | High price | 316 ₹ | PEG Ratio | -3.11 | Debt to equity | 0.00 |
| 52w Index | 21.1 % | Qtr Profit Var | 18.9 % | EPS | 8.29 ₹ | Industry PE | 16.9 |
📊 Chart & Trend Analysis: RITES is trading at 218 ₹, below both its 50 DMA (233 ₹) and 200 DMA (250 ₹), indicating short-term and medium-term weakness. RSI at 39.8 suggests the stock is nearing oversold territory. MACD at -3.88 confirms bearish momentum. Bollinger Bands show price leaning towards the lower band, signaling pressure but also potential for a rebound near support at 210–215 ₹.
📈 Momentum Signals: Current volume (18.8 lakh) is higher than the 1-week average (9.9 lakh), reflecting strong participation despite weak momentum. RSI near oversold levels may trigger a short-term bounce, but sustained recovery requires price action above 233–250 ₹.
🎯 Entry Zone: 210–220 ₹ (near support and oversold RSI)
🚪 Exit Zone: 240–255 ₹ (resistance near 50 DMA and 200 DMA)
📌 Trend Status: Consolidating with bearish bias. A reversal is possible if RSI rebounds and price sustains above 250 ₹ with volume confirmation.
Positive
- Strong ROCE at 20% and ROE at 15.1% indicate efficient capital use.
- Debt-free balance sheet (Debt-to-equity 0.00) adds financial stability.
- Dividend yield of 3.46% provides steady income for investors.
- PAT improved to 102 Cr. from 66.6 Cr., showing sequential growth.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling technical weakness.
- High P/E of 26.4 compared to industry PE of 16.9, making valuation expensive.
- PEG ratio of -3.11 suggests poor growth-adjusted valuation.
Company Negative News
- FII (-0.05%) and DII (-0.03%) holdings reduced, showing institutional caution.
- Stock near 52-week low zone (192 ₹), reflecting weak sentiment.
Company Positive News
- Quarterly profit variation of +18.9% highlights operational improvement.
- EPS of 8.29 ₹ reflects profitability despite valuation concerns.
Industry
- Industry PE at 16.9 is lower than RITES’s 26.4, suggesting sector peers are more reasonably valued.
- Infrastructure and engineering services sector benefits from government-backed projects and long-term demand.
Conclusion
⚖️ RITES is consolidating with bearish bias, trading below key moving averages but supported by strong fundamentals like ROCE, ROE, and debt-free status. Entry near 210–220 ₹ offers tactical opportunity, while exits around 240–255 ₹ align with resistance. Despite sequential profit growth, expensive valuation and weak technicals warrant cautious positioning until a breakout above 250 ₹ confirms reversal.