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

RITES is projected to see lower revenues than in the previous year, a trend that usually concerns investors. Declining revenues often harm a company's profitability, leading investors to exercise caution as they weigh the potential risks of continued financial downturns.

Financial Ratios:

currentRatio 0.000000
forwardPE 20.630276
debtToEquity 0.377000
earningsGrowth -0.168000
revenueGrowth -0.157000
grossMargins 0.298760
operatingMargins 0.176050
trailingEps 7.870000
forwardEps 11.770000

RITES's Forward PE being in a good range indicates that the stock is valued appropriately based on its earnings. This suggests the stock is not overpriced and leaves room for growth, providing investors with an opportunity for potential appreciation in value.
RITES's low earnings and revenue growth suggest that its profits could shrink. This points to a potential downturn in the company's financial outlook and may indicate challenges in maintaining profitability.
RITES's negative gross and operating margins signal that the company is not profitable, struggling to cover costs associated with production and operations. This could be a red flag for its financial performance moving forward.
RITES's forward EPS is higher than its trailing EPS, suggesting the company is expected to improve its profitability this financial year. This reflects growing confidence in RITES's earnings potential, with forecasts indicating better financial performance than in the prior year.

Price projections:

Price projections for RITES
Price projections for RITES

RITES's price has consistently hovered near the lower end of price projections. This trend suggests that the stock is underperforming relative to analyst expectations, indicating a potential lack of momentum for upward movement in the near future.

Recommendation changes over time:

Recommendations trend for RITES
Recommendations trend for RITES


A recent sell bias from analysts toward RITES suggests caution, but investors should look beyond this sentiment. It's advisable to consider a broad range of market indicators to make well-informed decisions, ensuring a deeper understanding of the stock's potential and market behavior.