RITES Limited, together with its subsidiaries, provides consultancy services in the fields of transport, infrastructure, and related technologies in India and internationally.
The last earnings update was 237 days ago.
Discounted Cash Flow Calculation for BSE:541556 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
BSE:541556 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
RITES's share price is below the future cash flow value, and at a moderate discount (> 20%).
RITES's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
RITES's earnings available for a low price, and how does
this compare to other companies in the same industry?
RITES's earnings are expected to grow by 17% yearly, however this is not considered high growth (20% yearly).
RITES's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
RITES's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
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 October 10, 2012 until September 01, 2013. Mr. Mehrotra has over 25 years of work experience in various areas of finance including resource mobilization from domestic and international financial markets, financial risk management, treasury operations, borrowing and lending operations, financial accounting, taxation, investment of surplus funds, lending policies, accounting policies, corporate financial management information systems and project appraisal. Prior to joining RITES, Mr. Mehrotra worked with PFCL between 1989 and 2007, where he last served as an Additional General Manager. He has also worked with NHPC Limited between 1982 and 1989. He has been Chairman of Tanzania Railway Limited. since November 1, 2010. He has been Chairman and Whole Time Director of RITES Ltd. since October 11, 2012 and October 12, 2007 respectively. Mr. Mehrotra is a Fellow Member of the Institute of Cost and Works Accountants of India, Kolkata. He has received training in financial management of power utilities from the Global Utilities Institute at the University of Samford, Alabama, USA and has also received advanced training in project appraisal and investment analysis from the Harvard Institute of International Development through their programme organized in conjunction with the National Institute of Financial Management, Faridabad. Mr. Mehrotra holds a bachelor’s degree in commerce from the University of Rajasthan.
Rajeev's compensation has been consistent with company performance over the past year.
Rajeev's remuneration is lower than average for companies of similar size in India.
Director of Finance
Director of Technical & Whole Time Director
Company Secretary & Compliance Officer
Chief Vigilance Officer
Executive Director of Business Development
Executive Director of Transport Infra
Executive Director of Technical Services
Executive Director of Expotech
Executive Director of Quality Assurance
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the RITES board of directors is about average.
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 services as consultants, engineers, and project managers 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.
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