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 Limited's revenue projections show a decrease from last year, which tends to make investors more cautious. This could have a negative impact on the company's bottom line, as lower revenues typically suggest reduced profitability and growth potential, prompting concern among investors.

Financial Ratios:

currentRatio 1.532000
forwardPE 20.039062
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 being 1.532 suggests the company will have no issues paying off its short-term debt. With sufficient cash reserves and current assets, RITES can easily cover its immediate liabilities, reflecting solid financial health.
RITES Limited's Forward PE ratio is in a good range, reflecting a reasonable balance between stock price and earnings. The stock is not overpriced, leaving room for growth, which suggests potential for investors looking to capitalize on future value appreciation.
RITES's low earnings and revenue growth highlight a potential decline in profitability. This suggests that the company's financial health may be weakening, and profits could shrink as a result.
RITES's positive gross and operating margins highlight its strong profitability. The company's ability to control costs while generating revenue indicates efficient operations and a healthy financial position.
RITES's forward EPS is greater than its trailing EPS, indicating that the company is expected to deliver higher profitability this year. This suggests that RITES is projected to improve its earnings, reflecting positive growth compared to last year's financial performance.

Price projections:

Price projections for RITES
Price projections for RITES

Throughout its recent performance, RITES's price has been consistently close to the lower range of projected values. This suggests that the company may face challenges in achieving higher valuations in the eyes of investors.

Recommendation changes over time:

Recommendations trend for RITES
Recommendations trend for RITES


RITES has recently received a buy bias from analysts, indicating that the stock is being perceived as a favorable investment. This positive sentiment could encourage investors to see RITES as a wise place to allocate their funds, potentially leading to increased interest in the company's stock.