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's revenue projections indicate a decrease from last year's performance, which could lead to investor caution. A fall in revenue is likely to negatively impact the company's profitability, causing concern for shareholders who may view this as a signal of declining financial health.

Financial Ratios:

currentRatio 1.532000
forwardPE 21.304688
debtToEquity 0.328000
earningsGrowth 0.052000
revenueGrowth -0.043000
grossMargins 0.308620
operatingMargins 0.274310
trailingEps 8.020000
forwardEps 11.770000

RITES's current ratio of 1.532 means the company has enough liquidity to meet its short-term debt obligations. With sufficient cash reserves and current assets, RITES can comfortably cover its liabilities, reflecting a strong financial outlook.
RITES's Forward PE is well-positioned, indicating the stock price is favorable compared to its earnings. This suggests the stock is not overpriced and offers room for growth, making it an attractive option for investors looking for future value appreciation.
RITES's low earnings and revenue growth suggest that the company may face shrinking profits. This could indicate underlying financial challenges, making it difficult for RITES to sustain its current profitability.
RITES's positive gross and operating margins indicate a profitable and efficient business model. These metrics highlight the company's ability to generate income while controlling operational costs, reflecting strong financial performance.
RITES's forward EPS being higher than its trailing EPS suggests that the company is expected to generate stronger profits this year. This points to improving financial performance, with RITES anticipated to deliver better earnings than it did in the prior year.

Price projections:

Price projections for RITES
Price projections for RITES

The stock price of RITES Limited has frequently been close to the lower end of analysts' projections. This trend indicates potential struggles for the company in achieving the growth anticipated by the market.

Recommendation changes over time:

Recommendations trend for RITES
Recommendations trend for RITES


Analysts' buy bias for RITES Limited signals that the stock is considered a favorable investment. This outlook might prompt investors to allocate funds to RITES Limited, seeing it as a solid and profitable choice to park their money and potentially benefit from the company's long-term growth.