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RITES

NSEI:RITES
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RITES
NSEI
₹51B
Market Cap
  1. Home
  2. IN
  3. Commercial Services
Company description

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 271 days ago. More info.


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RITES Share Price and Events
7 Day Returns
10.8%
NSEI:RITES
3.1%
IN Professional Services
4.3%
IN Market
1 Year Returns
-
NSEI:RITES
-6.9%
IN Professional Services
0.3%
IN Market
RITES Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RITES (RITES) 10.8% 5% 16.7% - - -
IN Professional Services 3.1% 0.9% 7.7% -6.9% 191.8% -13.1%
IN Market 4.3% -1.1% 6.7% 0.3% 36.5% 45.2%
1 Year Return vs Industry and Market
  • No trading data on RITES.
  • No trading data on RITES.
Price Volatility
Industry
5yr Volatility vs Market

RITES Value

 Is RITES undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of RITES to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for RITES.

NSEI:RITES Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 15.5%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:RITES
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.878 (1 + (1- 35%) (1.24%))
0.923
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.923 * 8.6%)
15.49%

Discounted Cash Flow Calculation for NSEI:RITES using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for RITES 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.

NSEI:RITES DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 15.49%)
2019 5,443.30 Est @ 8.44% 4,713.36
2020 5,888.32 Est @ 8.18% 4,414.96
2021 6,358.67 Est @ 7.99% 4,128.28
2022 6,858.23 Est @ 7.86% 3,855.52
2023 7,390.74 Est @ 7.76% 3,597.71
2024 7,959.84 Est @ 7.7% 3,355.14
2025 8,569.18 Est @ 7.66% 3,127.61
2026 9,222.46 Est @ 7.62% 2,914.66
2027 9,923.51 Est @ 7.6% 2,715.65
2028 10,676.31 Est @ 7.59% 2,529.87
Present value of next 10 years cash flows ₹35,352.77
NSEI:RITES DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹10,676.31 × (1 + 7.55%) ÷ (15.49% – 7.55%)
₹144,672.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹144,672.79 ÷ (1 + 15.49%)10
₹34,281.82
NSEI:RITES Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹35,352.77 + ₹34,281.82
₹69,634.60
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹69,634.60 / 200.00
₹348.17
NSEI:RITES Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹348.17
Current discount Discount to share price of ₹253.95
= -1 x (₹253.95 - ₹348.17) / ₹348.17
27.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price RITES is available for.
Intrinsic value
27%
Share price is ₹253.95 vs Future cash flow value of ₹348.17
Current Discount Checks
For RITES 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 RITES's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RITES's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:RITES PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹17.42
NSEI:RITES Share Price ** NSEI (2019-05-23) in INR ₹253.95
India Professional Services Industry PE Ratio Median Figure of 16 Publicly-Listed Professional Services Companies 17.98x
India Market PE Ratio Median Figure of 2,766 Publicly-Listed Companies 15.4x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of RITES.

NSEI:RITES PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:RITES Share Price ÷ EPS (both in INR)

= 253.95 ÷ 17.42

14.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RITES is good value based on earnings compared to the IN Professional Services industry average.
  • RITES is good value based on earnings compared to the India market.
Price based on expected Growth
Does RITES's expected growth come at a high price?
Raw Data
NSEI:RITES PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
17%per year
Asia Professional Services Industry PEG Ratio Median Figure of 5 Publicly-Listed Professional Services Companies 1.6x
India Market PEG Ratio Median Figure of 558 Publicly-Listed Companies 1.3x

*Line of best fit is calculated by linear regression .

NSEI:RITES PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.58x ÷ 17%

0.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RITES is good value based on expected growth next year.
Price based on value of assets
What value do investors place on RITES's assets?
Raw Data
NSEI:RITES PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹110.31
NSEI:RITES Share Price * NSEI (2019-05-23) in INR ₹253.95
India Professional Services Industry PB Ratio Median Figure of 22 Publicly-Listed Professional Services Companies 1.15x
India Market PB Ratio Median Figure of 3,639 Publicly-Listed Companies 1.04x
NSEI:RITES PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:RITES Share Price ÷ Book Value per Share (both in INR)

= 253.95 ÷ 110.31

2.3x

* Primary Listing of RITES.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RITES is overvalued based on assets compared to the IN Professional Services industry average.
X
Value checks
We assess RITES's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. RITES has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RITES Future Performance

 How is RITES expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RITES expected to grow at an attractive rate?
  • RITES's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • RITES's earnings growth is positive but not above the India market average.
  • RITES's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:RITES Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:RITES Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 17%
NSEI:RITES Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 20.3%
India Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 20.8%
Asia Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 15.8%
India Market Earnings Growth Rate Market Cap Weighted Average 17.1%
India Market Revenue Growth Rate Market Cap Weighted Average 10.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:RITES Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:RITES Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-03-31 23,005 4,922 1
2019-03-31 19,980 4,305 1
NSEI:RITES Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 15,138 6,079 3,483
2017-03-31 13,655 5,551 3,285
2016-03-31 10,906 637 2,814

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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.
Raw Data
NSEI:RITES Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from RITES Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:RITES Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-03-31 24.61 24.61 24.61 1.00
2019-03-31 21.53 21.53 21.53 1.00
NSEI:RITES Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 17.42
2017-03-31 16.42
2016-03-31 14.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • RITES is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess RITES's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
RITES has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RITES Past Performance

  How has RITES performed over the past 5 years?

  • RITES's last earnings update was 271 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare RITES's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if RITES's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare RITES's 1-year earnings growth to the 5-year average due to insufficient past data.
  • RITES's earnings growth has not exceeded the IN Professional Services industry average in the past year (6% vs 9.5%).
Earnings and Revenue History
RITES's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from RITES Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:RITES Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 15,138.10 3,483.40 5,133.10
2017-03-31 13,654.70 3,284.80 4,692.20
2016-03-31 10,905.86 2,813.91 3,869.58
2015-03-31 10,253.00 3,029.80 3,706.70
2014-03-31 10,969.50 2,600.50 4,016.90 1.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • RITES has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • RITES used its assets less efficiently than the IN Professional Services industry average last year based on Return on Assets.
  • RITES's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess RITES's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
RITES 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.

Full details on the Past part of the Simply Wall St company analysis model.

RITES Health

 How is RITES's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up RITES's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RITES is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RITES's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of RITES's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 68.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from RITES Company Filings, last reported 1 year ago.

NSEI:RITES Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 22,629.30 630.50 35,957.40
2017-03-31 20,820.20 1,116.90 30,802.20
2016-03-31 18,895.45 1,241.70 26,045.21
2015-03-31 16,441.70 1,196.70 20,622.00
2014-03-31 14,065.40 885.50 21,211.80
  • RITES's level of debt (2.8%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if RITES's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (964.2%, greater than 20% of total debt).
  • RITES earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess RITES's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. RITES has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RITES Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.45%
Current annual income from RITES dividends.
If you bought ₹2,000 of RITES shares you are expected to receive ₹69 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • RITES's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.54%).
  • RITES's dividend is above the markets top 25% of dividend payers in India (2%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:RITES Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
India Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 1.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1409 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:RITES Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2020-03-31
2019-03-31
NSEI:RITES Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-03-11 8.750 3.500
2018-12-17 6.750 2.752
2018-08-27 5.500 2.112
2018-07-30 5.500 1.970
2018-07-02 6.650 3.225

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether RITES has stable dividend payments.
  • RITES only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of RITES's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess RITES's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can RITES afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RITES has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RITES Management

 What is the CEO of RITES's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Rajeev Mehrotra
COMPENSATION ₹6,542,059
AGE 57
CEO Bio

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.

CEO Compensation
  • Rajeev's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Rajeev's remuneration is lower than average for companies of similar size in India.
Management Team

Rajeev Mehrotra

TITLE
Chairman
COMPENSATION
₹7M
AGE
57

Ajay Gaur

TITLE
Director of Finance
COMPENSATION
₹5M
AGE
57

Mukesh Rathore

TITLE
Director of Technical & Whole Time Director
COMPENSATION
₹5M
TENURE
2.4 yrs

Ashish Srivastava

TITLE
Company Secretary & Compliance Officer

A. Poddar

TITLE
Chief Vigilance Officer
TENURE
1.8 yrs

R. Tyagi

TITLE
Executive Director of Business Development

Alok Garg

TITLE
Executive Director of Transport Infra

Pradeep Gupta

TITLE
Executive Director of Technical Services

Puneet Kumar

TITLE
Executive Director of Expotech

Pankaj Agrawal

TITLE
Executive Director of Quality Assurance
Board of Directors Tenure

Average tenure and age of the RITES board of directors in years:

3.1
Average Tenure
55
Average Age
  • The tenure for the RITES board of directors is about average.
Board of Directors

Ajay Gaur

TITLE
Director of Finance
COMPENSATION
₹5M
AGE
57
TENURE
5.7 yrs

Mukesh Rathore

TITLE
Director of Technical & Whole Time Director
COMPENSATION
₹5M
TENURE
2.4 yrs

V. Gopi Kumar

TITLE
Director of Projects% Executive Director
TENURE
0.7 yrs

Vidya Yeravdekar

TITLE
Non-Executive Independent Director
COMPENSATION
₹280K
AGE
54
TENURE
3.1 yrs

Rajeev Mehrotra

TITLE
Chairman
COMPENSATION
₹7M
AGE
57
TENURE
7.3 yrs

Anil Goel

TITLE
Non-Executive Independent Director
COMPENSATION
₹720K
AGE
56
TENURE
3.1 yrs

Satish Sareen

TITLE
Non-Executive Independent Director
COMPENSATION
₹720K
AGE
52
TENURE
3.1 yrs

Pramod Anand

TITLE
Non-Executive Independent Director
TENURE
1.7 yrs

Amar Dwivedi

TITLE
Government Nominee Director
AGE
54
TENURE
4.2 yrs

P. Geethakumary

TITLE
Non-Executive Independent Director
COMPENSATION
₹50K
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
24. Aug 18 Sell Rashmi Agrawal Individual 02. Jul 18 17. Aug 18 -2,650 ₹299.33 ₹-683,765
21. Aug 18 Sell Vijayi Kishore Individual 17. Aug 18 17. Aug 18 -2,600 ₹303.95 ₹-790,270
21. Aug 18 Buy Vijayi Kishore Individual 17. Aug 18 17. Aug 18 200 ₹296.70 ₹59,341
08. Aug 18 Sell Gopal Gupta Individual 02. Jul 18 06. Aug 18 -2,520 ₹285.21 ₹-570,351
08. Aug 18 Sell Gopal Gupta Individual 03. Aug 18 06. Aug 18 -200 ₹285.21 ₹-55,322
16. Aug 18 Sell Pawan Mishra Individual 02. Jul 18 03. Aug 18 -2,502 ₹273.50 ₹-558,575
16. Aug 18 Buy Pawan Mishra Individual 17. Jul 18 17. Jul 18 2 ₹194.70 ₹389
13. Jul 18 Sell Sushil Yadav Individual 02. Jul 18 02. Jul 18 -2,220 ₹215.40 ₹-478,178
13. Jul 18 Sell Raj Kumar Individual 28. Jun 18 06. Jul 18 -4,440 ₹222.68 ₹-843,579
06. Jul 18 Sell Tapas Misra Individual 02. Jul 18 02. Jul 18 -5,940 ₹219.44 ₹-1,303,474
06. Jul 18 Buy Tapas Misra Individual 02. Jul 18 02. Jul 18 4,515 ₹211.33 ₹954,155
06. Jul 18 Sell Ravinder Marwa Individual 02. Jul 18 02. Jul 18 -2,000 ₹217.45 ₹-434,900
06. Jul 18 Buy Ravinder Marwa Individual 05. Jul 18 05. Jul 18 2,000 ₹198.42 ₹396,840
X
Management checks
We assess RITES's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. RITES has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RITES News

Simply Wall St News

Why We Like RITES Limited’s (NSE:RITES) 16% Return On Capital Employed

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

What To Know Before Buying RITES Limited (NSE:RITES) For Its Dividend

RITES Limited (NSE:RITES) has started paying a dividend to shareholders. … How I analyze a dividend stock … When researching a dividend stock, I always follow the following screening criteria:

Simply Wall St -

Should We Be Delighted With RITES Limited's (NSE:RITES) ROE Of 16%?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.16 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are Insiders Selling RITES Limited (NSE:RITES) Stock?

Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So we'll take a look at whether insiders have been buying or selling shares in RITES Limited (NSE:RITES). … But logic dictates you should pay some attention to whether insiders are buying or selling shares.

Simply Wall St -

RITES Limited (NSE:RITES) Will Pay ₹4.75 In Dividends

If you are interested in cashing in on RITES Limited's (NSE:RITES) upcoming dividend of ₹4.75 per share, you only have 4 days left to buy the shares before its ex-dividend date, 27 December 2018, in time for dividends payable on the 16 January 2019. … 5 questions I ask before picking a dividend stock? … Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

Simply Wall St -

RITES Limited (NSE:RITES): A Look At Solid Capital Returns

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand RITES’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Why RITES Limited (NSE:RITES) Looks Like A Quality Company

RITES has a ROE of 16%, based on the last twelve months. … Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.16. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Does RITES Limited (NSE:RITES) Fare As A Dividend Stock?

Recently, RITES Limited (NSE:RITES) has started paying dividends to shareholders. … Let's dig deeper into whether RITES should have a place in your portfolio. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

Simply Wall St -

What Should You Know About RITES Limited's (NSE:RITES) Return On Capital?

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand RITES’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Is RITES Limited (NSE:RITES) A Smart Pick For Income Investors?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Recently, RITES Limited (NSE:RITES) has returned an average of 4.00% per year to shareholders in terms of dividend yield. … Does RITES tick all the boxes of a great dividend stock?

Simply Wall St -

RITES Company Info

Description

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.

Details
Name: RITES Limited
RITES
Exchange: NSEI
Founded: 1974
₹51,000,000,000
200,000,000
Website: http://ritesltd.com
Address: RITES Limited
RITES Bhawan,
No. 1, Sector-29,
Gurgaon,
Haryana, 122001,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI RITES Equity Shares National Stock Exchange of India IN INR 20. Apr 2009
BSE 541556 Equity Shares Mumbai Stock Exchange IN INR 20. Apr 2009
Number of employees
Current staff
Staff numbers
0
RITES employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 13:02
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/03/01
Last earnings filing: 2018/08/25
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.