Overall Fundamental outlook

Business Operations:

Sector: Industrials
Industry: Engineering & Construction

RITES Limited, together with its subsidiaries, provides design, engineering consultancy, and project management services in the field of railways, highways, airports, metros, ports, ropeways, urban transport, inland waterways, and renewable energy. The company operates through five segments: Consultancy Services; Leasing of Railway Rolling Stock & Equipments; Export of Rolling Stock, Equipments and Spares; Turnkey Construction Projects; and Power Generation. It is involved in the engineering design and survey, feasibility studies, detailed design and consultancy, project management consultancy, technical audit, third party inspection, quality assurance, construction supervision, and leasing and export of locomotives and rolling stock; turnkey construction; and maintenance and operational facilities such as smart yards, coaching, and freight maintenance depots. The company also constructs railway workshops, track doubling /tripling/quadruplicating, new/additional railway line, railway electrification, redevelopment of railway stations, institutional buildings, wind, solar and other renewable energy projects on a turnkey basis; civil engineering works; and generates power from windmills and solar energy plants. In addition, it offers services in the field of road/railway tunnels engineering, urban engineering, electrical engineering, information technology, transaction, advisory, procurement, railway electrification, rolling stock design, railway equipment, signaling & telecommunications, surveys, and training programs. The company serves central/state governments, public sector undertakings, large corporations, and private enterprises in India, Asia, Africa, and internationally. RITES Limited was incorporated in 1974 and is based in Gurugram, India.

Revenue projections:

Revenue projections for RITES
Revenue projections for RITES

The projected decline in RITES's revenues compared to last year is expected to make investors cautious. A drop in revenue often has a direct negative effect on the company's bottom line, signaling potential challenges that could undermine investor confidence and reduce overall profitability.

Financial Ratios:

currentRatio 1.673000
forwardPE 18.287237
debtToEquity 0.236000
earningsGrowth -0.022000
revenueGrowth 0.248000
grossMargins 0.320770
operatingMargins 0.197410
trailingEps 8.540000
forwardEps 11.262500

RITES Limited's current ratio of 1.673 shows that the company has ample resources to service its short-term debt. This indicates a solid financial position, as RITES Limited can rely on its cash reserves and current assets to cover its immediate liabilities without strain.
RITES's Forward PE is positioned well, reflecting a favorable balance between stock price and earnings. The stock isn't overpriced, offering room for growth and making it a potentially rewarding investment as its value has room to rise further.
With a forward EPS greater than its trailing EPS, RITES Limited is expected to see higher profitability this year. The forecasted increase in earnings reflects optimism about the company's financial growth and potential for improved performance over the prior year.

Price projections:

Price projections for RITES
Price projections for RITES

Price projections for RITES have been steadily revised downward over time, indicating growing concerns about the company's future performance. This downward trend reflects reduced optimism among analysts regarding RITES's ability to meet previous expectations.

Recommendation changes over time:

Recommendations trend for RITES
Recommendations trend for RITES


Analysts have shown a buy bias for RITES, signaling it as a strong investment choice. This positive outlook could motivate investors to allocate funds to RITES, seeing it as a reliable and potentially profitable option, especially in an environment where the stock market is highly scrutinized.