RITES - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | RITES | Market Cap | 10,521 Cr. | Current Price | 219 ₹ | High / Low | 316 ₹ |
| Stock P/E | 26.4 | Book Value | 52.4 ₹ | Dividend Yield | 3.45 % | ROCE | 20.0 % |
| ROE | 15.1 % | Face Value | 10.0 ₹ | DMA 50 | 211 ₹ | DMA 200 | 232 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.07 % | PAT Qtr | 95.5 Cr. | PAT Prev Qtr | 102 Cr. |
| RSI | 58.4 | MACD | 5.52 | Volume | 2,77,803 | Avg Vol 1Wk | 4,01,228 |
| Low price | 175 ₹ | High price | 316 ₹ | PEG Ratio | -3.12 | Debt to equity | 0.00 |
| 52w Index | 31.1 % | Qtr Profit Var | 0.55 % | EPS | 8.30 ₹ | Industry PE | 18.5 |
Chart & Trend Analysis:
RITES is trading at ₹219, above its 50 DMA (₹211) but below the 200 DMA (₹232), showing short-term strength but medium-term resistance. RSI at 58.4 indicates moderate momentum. MACD at 5.52 shows mild bullish crossover. Bollinger Bands place price near the mid-band, reflecting consolidation with upward bias. Volume (2,77,803) is below the 1-week average (4,01,228), suggesting weak participation.
Momentum Signals:
- Short-term momentum is mildly bullish but capped by medium-term resistance.
- Entry Zone: ₹215–₹220 (support near 50 DMA).
- Exit Zone: ₹230–₹235 (resistance near 200 DMA).
- Trend Status: Consolidating with upward bias; reversal not confirmed.
Positive
- Strong ROCE (20.0%) and ROE (15.1%) highlight efficiency.
- Debt-free balance sheet (Debt-to-equity 0.00).
- Dividend yield of 3.45% adds income appeal.
- Stable EPS of ₹8.30 provides valuation comfort.
- DII inflows (+0.07%) show domestic institutional support.
Limitation
- P/E (26.4) is higher than industry average (18.5), indicating premium valuation.
- Quarterly PAT declined (₹95.5 Cr vs ₹102 Cr), showing earnings pressure.
- Negative PEG ratio (-3.12) reflects poor growth visibility.
- Volume below average reduces conviction in price action.
Company Negative News
- Marginal profit decline raises concerns about growth momentum.
- Premium valuation may limit upside in the short term.
Company Positive News
- Strong efficiency metrics (ROCE, ROE) support fundamentals.
- Debt-free balance sheet enhances financial stability.
- Dividend yield above 3% supports long-term investors.
Industry
- Industry P/E at 18.5 highlights RITES’ premium valuation.
- Sector supported by infrastructure expansion and government initiatives.
Conclusion
RITES shows short-term bullish signals above 50 DMA but faces resistance near 200 DMA. Fundamentals remain strong with efficiency and dividend yield, but earnings pressure and premium valuation limit upside. Tactical entries near ₹215–₹220 with exits around ₹230–₹235 provide a balanced swing trade setup. Long-term investors can hold for stability, while traders should watch volume and resistance levels closely.