BSE:541556

Stock Analysis Report

Executive Summary

RITES Limited, together with its subsidiaries, provides consultancy services in the fields of transport, infrastructure, and related technologies in India and internationally.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has RITES's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 541556 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

541556

-1.7%

IN Professional Services

-1.2%

IN Market


1 Year Return

75.8%

541556

5.4%

IN Professional Services

6.4%

IN Market

Return vs Industry: 541556 exceeded the Indian Professional Services industry which returned 5.4% over the past year.

Return vs Market: 541556 exceeded the Indian Market which returned 6.4% over the past year.


Shareholder returns

541556IndustryMarket
7 Day-0.8%-1.7%-1.2%
30 Day0.1%-5.7%-3.6%
90 Day13.6%8.9%-0.5%
1 Year86.8%75.8%6.8%5.4%8.4%6.4%
3 Yearn/a56.5%54.2%20.9%14.3%
5 Yearn/a-51.0%-51.3%29.8%18.0%

Price Volatility Vs. Market

How volatile is RITES's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is RITES undervalued compared to its fair value and its price relative to the market?

12.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 541556 (₹318.05) is trading above our estimate of fair value (₹179.92)

Significantly Below Fair Value: 541556 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 541556 is poor value based on its PE Ratio (12.6x) compared to the Professional Services industry average (12.6x).

PE vs Market: 541556 is good value based on its PE Ratio (12.6x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 541556's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 541556 is overvalued based on its PB Ratio (3x) compared to the IN Professional Services industry average (0.8x).


Next Steps

Future Growth

How is RITES forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.3%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RITES has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has RITES performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 541556 has high quality earnings.

Growing Profit Margin: 541556's current net profit margins (23.4%) are lower than last year (23.5%).


Past Earnings Growth Analysis

Earnings Trend: 541556's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: 541556's earnings growth over the past year (41.1%) exceeds its 5-year average (15.3% per year).

Earnings vs Industry: 541556 earnings growth over the past year (41.1%) exceeded the Professional Services industry 6.1%.


Return on Equity

High ROE: 541556's Return on Equity (23.5%) is considered high.


Next Steps

Financial Health

How is RITES's financial position?


Financial Position Analysis

Short Term Liabilities: 541556's short term assets (₹47.5B) exceed its short term liabilities (₹26.7B).

Long Term Liabilities: 541556's short term assets (₹47.5B) exceed its long term liabilities (₹2.1B).


Debt to Equity History and Analysis

Debt Level: 541556's debt to equity ratio (1.3%) is considered satisfactory.

Reducing Debt: 541556's debt to equity ratio has reduced from 7.1% to 1.3% over the past 5 years.

Debt Coverage: 541556's debt is well covered by operating cash flow (706.7%).

Interest Coverage: 541556 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 541556 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 541556's debt is covered by short term assets (assets are 129.5x debt).


Next Steps

Dividend

What is RITES's current dividend yield, its reliability and sustainability?

4.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 541556's dividend (4.15%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 541556's dividend (4.15%) is in the top 25% of dividend payers in the Indian market (2.63%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 541556 has been paying a dividend for less than 10 years.

Growing Dividend: 541556's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.5%), 541556's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Rajeev Mehrotra (58yo)

₹7,517,806

Compensation

Mr. Rajeev Mehrotra, FICWA has been the Managing Director of RITES Ltd. since September 1, 2011 and serves as its Chief Executive Officer. Mr. Mehrotra served as Director of Finance at RITES Ltd. since Aug ...


CEO Compensation Analysis

Compensation vs Market: Rajeev's total compensation ($USD104.67K) is below average for companies of similar size in the Indian market ($USD411.95K).

Compensation vs Earnings: Rajeev's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rajeev Mehrotra
Chairman0yrs₹7.52mno data
Ashish Srivastava
Company Secretary & Compliance Officer0yrs₹1.58m0.0014% 1.1m
Gopi Varadarajan
Director of Projects & Executive Director1.4yrs₹4.15mno data
Parmod Narang
Chief Financial Officer0.5yrsno datano data
A. Poddar
Chief Vigilance Officer2.5yrsno datano data
P. Gupta
Executive Director of Regional Projects0yrsno datano data
Y. Sharma
Executive Director0yrsno datano data
Virendra Singh
Executive Director of Expotech0yrsno datano data
Anil Vij
Director of Technical & Executive Director0.3yrsno datano data
Piyush Kansal
Executive Director of Urban Infra0yrsno datano data

1.0yrs

Average Tenure

Experienced Management: 541556's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rajeev Mehrotra
Chairman0yrs₹7.52mno data
Gopi Varadarajan
Director of Projects & Executive Director1.4yrs₹4.15mno data
Anil Vij
Director of Technical & Executive Director0.3yrsno datano data
B. Nayak
Director of Finance & Executive Director0.3yrsno datano data
Anil Goel
Additional Independent Director0.6yrs₹650.00kno data
Satish Sareen
Additional Independent Director0.6yrs₹650.00kno data
Geethakumari P.S.
Non-Executive Independent Director1.9yrs₹500.00kno data
Rajendra Goyal
Independent Director1.9yrs₹400.00kno data
Pramod Anand
Non-Executive Independent Director2.4yrs₹480.00kno data
Alok Tewari
Part Time Government Director0.8yrsno datano data

1.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 541556's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

RITES Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RITES Limited
  • Ticker: 541556
  • Exchange: BSE
  • Founded: 1974
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: ₹79.475b
  • Shares outstanding: 250.00m
  • Website: https://ritesltd.com

Location

  • RITES Limited
  • RITES Bhawan
  • No. 1, Sector-29
  • Gurugram
  • Haryana
  • 122001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
541556BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2009
RITESNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2009

Biography

RITES Limited, together with its subsidiaries, provides consultancy services in the fields of transport, infrastructure, and related technologies in India and internationally. It operates through four segments: Consultancy Services; Turnkey Construction Projects; Export of Rolling Stock, Equipments and Spares; and Leasing of Railway Rolling Stock & Equipments. The company offers consultancy, engineering, and project management services in the areas of railways, highways, airports, ports, ropeways, urban transport, and inland waterways. It is also involved in the third party inspection, quality assurance, construction supervision and project management, operation and maintenance, leasing, and export of rolling stock; and provision of railway workshops modernization services. In addition, the company generates power from wind mills and solar energy plants; manufactures and rehabilitates wagons; and undertakes civil construction works. Further, it provides services in various sectors, such as architecture and planning, bridges and tunnel engineering, environmental/urban engineering, electrical engineering, financial management, geo-technology, industrial engineering, information technology, marine engineering, materials system management, privatization and concession projects, railway electrification, rolling stock design, signal and telecommunication, surveys, and training programs. The company serves governments, public sector undertakings, corporations and industrial establishments, and private enterprises, and other organizations. RITES Limited was founded in 1974 and is based in Gurugram, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:03
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.