RITES Valuation

Is 541556 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 541556 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 541556 (₹298.7) is trading below our estimate of fair value (₹306.96)

Significantly Below Fair Value: 541556 is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 541556?

Key metric: As 541556 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 541556. This is calculated by dividing 541556's market cap by their current earnings.
What is 541556's PE Ratio?
PE Ratio36.1x
Earnings₹3.98b
Market Cap₹145.89b

Price to Earnings Ratio vs Peers

How does 541556's PE Ratio compare to its peers?

The above table shows the PE ratio for 541556 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average56.6x
EMUDHRA eMudhra
92.8x37.4%₹73.4b
LATENTVIEW Latent View Analytics
61.4xn/a₹106.3b
LTTS L&T Technology Services
43.8x13.4%₹568.4b
REPL Rudrabhishek Enterprises
28.2xn/a₹3.8b
541556 RITES
36.1x21.9%₹145.9b

Price-To-Earnings vs Peers: 541556 is good value based on its Price-To-Earnings Ratio (36.1x) compared to the peer average (56.6x).


Price to Earnings Ratio vs Industry

How does 541556's PE Ratio compare vs other companies in the IN Professional Services Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SECURCRED SecUR Credentials
3.1xn/aUS$1.73m
No more companies available in this PE range
541556 36.1xIndustry Avg. 36.5xNo. of Companies6PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 541556 is good value based on its Price-To-Earnings Ratio (36.1x) compared to the Indian Professional Services industry average (36.5x).


Price to Earnings Ratio vs Fair Ratio

What is 541556's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

541556 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.1x
Fair PE Ratio45x

Price-To-Earnings vs Fair Ratio: 541556 is good value based on its Price-To-Earnings Ratio (36.1x) compared to the estimated Fair Price-To-Earnings Ratio (45x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 541556 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹298.70
₹326.75
+9.4%
4.1%₹347.00₹309.00n/a4
Dec ’25₹284.85
₹326.75
+14.7%
4.1%₹347.00₹309.00n/a4
Nov ’25₹302.40
₹459.25
+51.9%
36.2%₹744.00₹336.00n/a4
Oct ’25₹334.15
₹354.38
+6.1%
8.7%₹403.50₹319.00n/a4
Sep ’25₹324.60
₹354.38
+9.2%
8.7%₹403.50₹319.00n/a4
Aug ’25₹360.85
₹372.88
+3.3%
11.8%₹427.50₹319.00n/a4
Jul ’25₹345.85
₹377.25
+9.1%
10.4%₹427.50₹336.50n/a4
Jun ’25₹349.08
₹368.75
+5.6%
8.1%₹403.50₹336.50n/a4
May ’25₹342.13
₹364.38
+6.5%
9.7%₹403.50₹319.00n/a4
Apr ’25₹344.05
₹364.38
+5.9%
9.7%₹403.50₹319.00n/a4
Mar ’25₹394.48
₹364.38
-7.6%
9.7%₹403.50₹319.00n/a4
Feb ’25₹351.43
₹252.75
-28.1%
18.4%₹324.50₹211.50n/a4
Jan ’25₹251.10
₹230.90
-8.0%
22.5%₹310.50₹157.50n/a5
Dec ’24₹233.83
₹230.90
-1.3%
22.5%₹310.50₹157.50₹284.855
Nov ’24₹221.25
₹231.30
+4.5%
22.6%₹310.50₹157.50₹302.405
Oct ’24₹246.00
₹242.80
-1.3%
20.5%₹310.50₹157.50₹334.155
Sep ’24₹255.13
₹224.20
-12.1%
16.3%₹265.00₹157.50₹324.605
Aug ’24₹232.70
₹224.20
-3.7%
16.3%₹265.00₹157.50₹360.855
Jul ’24₹186.03
₹180.50
-3.0%
10.8%₹206.00₹157.50₹345.855
Jun ’24₹190.78
₹180.50
-5.4%
10.8%₹206.00₹157.50₹349.085
May ’24₹192.63
₹183.13
-4.9%
8.8%₹206.00₹161.00₹342.134
Apr ’24₹177.33
₹183.13
+3.3%
8.8%₹206.00₹161.00₹344.054
Mar ’24₹167.38
₹183.13
+9.4%
8.8%₹206.00₹161.00₹394.484
Feb ’24₹170.08
₹191.17
+12.4%
6.0%₹203.00₹175.50₹351.433
Jan ’24₹169.80
₹174.75
+2.9%
17.4%₹203.00₹125.00₹251.104
Dec ’23₹186.33
₹174.75
-6.2%
17.4%₹203.00₹125.00₹233.834

Analyst Forecast: Target price is less than 20% higher than the current share price.


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