Buy Or Sell Opportunity • Jul 01
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 22% to ₹233. The fair value is estimated to be ₹187, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 4.9% over the last 3 years. Earnings per share has declined by 10%. Revenue is forecast to grow by 44% in 2 years. Earnings are forecast to grow by 31% in the next 2 years. Buy Or Sell Opportunity • Jun 05
Now 26% overvalued after recent price rise Over the last 90 days, the stock has risen 1.9% to ₹210. The fair value is estimated to be ₹167, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 4.9% over the last 3 years. Earnings per share has declined by 10%. Revenue is forecast to grow by 44% in 2 years. Earnings are forecast to grow by 31% in the next 2 years. Announcement • May 30
RITES Limited Announces Appointment of Atul Singh as Government Nominee Director RITES Limited announced the appointment of Shri Atul Singh, PED /ME(PU)/W&I, Railway Board as part time Government Nominee Director on the Board of the Company till he holds the post of PED /ME(PU)/W&I, Railway Board, or until further orders, whichever is earlier. with effect from Date of allotment of DIN. Shri Atul Singh is presently serving as Principal Executive Director (Production Units/Workshops & Innovation), Railway Board. He is holding a Bachelor's in Mechanical Engineering and belongs to Indian Railways Service of Mechanical Engineers (IRSME) of 1991 batch and has more than 30 years of experience working with the Indian Railways. He has also worked on central deputation in the Ministry of Commerce during 2012-2017. Major Estimate Revision • May 26
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2027 has deteriorated. 2027 revenue forecast decreased from ₹29.9b to ₹28.3b. EPS estimate also fell from ₹10.63 per share to ₹9.38 per share. Net income forecast to grow 10% next year vs 17% growth forecast for Professional Services industry in India. Consensus price target broadly unchanged at ₹279. Share price was steady at ₹205 over the past week. New Risk • May 20
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 91% Cash payout ratio: 137% Dividend yield: 3.7% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • May 20
Full year 2026 earnings: EPS misses analyst expectations Full year 2026 results: EPS: ₹8.54 (up from ₹8.01 in FY 2025). Revenue: ₹25.2b (up 14% from FY 2025). Net income: ₹4.10b (up 6.6% from FY 2025). Profit margin: 16% (down from 17% in FY 2025). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.6%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Professional Services industry in India. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • May 12
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.3% to ₹212. The fair value is estimated to be ₹272, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.8% over the last 3 years. Earnings per share has declined by 12%. Revenue is forecast to grow by 50% in 2 years. Earnings are forecast to grow by 30% in the next 2 years. Announcement • Apr 22
RITES Limited to Report Fiscal Year 2026 Results on May 19, 2026 RITES Limited announced that they will report fiscal year 2026 results on May 19, 2026 Buy Or Sell Opportunity • Feb 12
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.6% to ₹223. The fair value is estimated to be ₹282, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.8% over the last 3 years. Earnings per share has declined by 12%. Revenue is forecast to grow by 50% in 2 years. Earnings are forecast to grow by 30% in the next 2 years. Declared Dividend • Feb 06
Third quarter dividend of ₹1.90 announced Shareholders will receive a dividend of ₹1.90. Ex-date: 10th February 2026 Payment date: 5th March 2026 Dividend yield will be 3.5%, which is higher than the industry average of 1.1%. Sustainability & Growth Dividend is not adequately covered by earnings (91% earnings payout ratio). However, it is covered by cash flows (89% cash payout ratio). The dividend has increased by an average of 14% per year over the past 8 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 1.6% to bring the payout ratio under control. EPS is expected to grow by 31% over the next 2 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Feb 05
Third quarter 2026 earnings released: EPS: ₹2.12 (vs ₹2.08 in 3Q 2025) Third quarter 2026 results: EPS: ₹2.12 (up from ₹2.08 in 3Q 2025). Revenue: ₹6.09b (up 5.7% from 3Q 2025). Net income: ₹1.02b (up 1.9% from 3Q 2025). Profit margin: 17% (in line with 3Q 2025). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Professional Services industry in India. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Jan 22
RITES Limited to Report Q3, 2026 Results on Feb 04, 2026 RITES Limited announced that they will report Q3, 2026 results on Feb 04, 2026 Declared Dividend • Nov 13
Second quarter dividend of ₹2.00 announced Shareholders will receive a dividend of ₹2.00. Ex-date: 14th November 2025 Payment date: 11th December 2025 Dividend yield will be 3.2%, which is higher than the industry average of 1.1%. Sustainability & Growth Dividend is covered by both earnings (53% earnings payout ratio) and cash flows (89% cash payout ratio). The dividend has increased by an average of 16% per year over the past 7 years. However, payments have been volatile during that time. EPS is expected to grow by 49% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 12
Second quarter 2026 earnings released: EPS: ₹2.04 (vs ₹1.52 in 2Q 2025) Second quarter 2026 results: EPS: ₹2.04 (up from ₹1.52 in 2Q 2025). Revenue: ₹5.79b (up 7.1% from 2Q 2025). Net income: ₹982.1m (up 35% from 2Q 2025). Profit margin: 17% (up from 14% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Professional Services industry in India. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Announcement • Oct 31
RITES Limited to Report Q2, 2026 Results on Nov 11, 2025 RITES Limited announced that they will report Q2, 2026 results on Nov 11, 2025 Announcement • Oct 20
RITES Limited Appoints Shri Jayant Kumar as Part Time Government Nominee Director, Effective October 17, 2025 RITES Limited informed that Ministry of Railways vide its letter no. 2022/PL/57/10 dated October 17, 2025 has informed that Hon'ble President of India has approved the appointment of Shri Jayant Kumar (DIN: 07179274), EDME (MDP), Railway Board as part time Government Nominee Director on the Board of the Company till he holds the post of EDME (MDP), Railway Board or until further orders, whichever is earlier. Shri Jayant Kumar is presently serving as EDME (MDP), Railway Board. He is holding a Bachelor's in Mechanical Engineering and belongs to Indian Railways Service of Mechanical Engineers (IRSME) of 1994 batch and has more than 25 years of rich & varied experience working with the Indian Railways and Govt. of India. Date of appointment is October 17, 2025. Buy Or Sell Opportunity • Oct 13
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.9% to ₹252. The fair value is estimated to be ₹318, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.9% over the last 3 years. Earnings per share has declined by 15%. Revenue is forecast to grow by 52% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. Buy Or Sell Opportunity • Sep 27
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to ₹248. The fair value is estimated to be ₹315, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.9% over the last 3 years. Earnings per share has declined by 15%. Revenue is forecast to grow by 52% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. Announcement • Sep 23
RITES Limited Appoints Rajbir Sharma as Independent Director, Effective September 23, 2025 RITES Limited at its Annual General Meeting held on September 23, 2025, approved to appoint Shri Rajbir Sharma as an Independent Director of the Company. Declared Dividend • Sep 06
Dividend of ₹2.65 announced Shareholders will receive a dividend of ₹2.65. Ex-date: 17th September 2025 Payment date: 23rd October 2025 Dividend yield will be 2.9%, which is higher than the industry average of 1.1%. Sustainability & Growth Dividend is not adequately covered by earnings (95% earnings payout ratio). However, it is covered by cash flows (72% cash payout ratio). The dividend has increased by an average of 16% per year over the past 7 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 5.0% to bring the payout ratio under control. EPS is expected to grow by 52% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Buy Or Sell Opportunity • Aug 25
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.8% to ₹252. The fair value is estimated to be ₹317, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.9% over the last 3 years. Earnings per share has declined by 15%. Revenue is forecast to grow by 52% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. Announcement • Aug 21
RITES Limited, Annual General Meeting, Sep 23, 2025 RITES Limited, Annual General Meeting, Sep 23, 2025, at 11:00 Indian Standard Time. Reported Earnings • Aug 07
First quarter 2026 earnings released: EPS: ₹1.67 (vs ₹1.65 in 1Q 2025) First quarter 2026 results: EPS: ₹1.67 (up from ₹1.65 in 1Q 2025). Revenue: ₹4.90b (flat on 1Q 2025). Net income: ₹801.0m (up 1.4% from 1Q 2025). Profit margin: 16% (in line with 1Q 2025). Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Professional Services industry in India. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Announcement • Jul 21
RITES Limited to Report Q1, 2026 Results on Aug 06, 2025 RITES Limited announced that they will report Q1, 2026 results on Aug 06, 2025 New Risk • May 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (94% payout ratio). Share price has been volatile over the past 3 months (8.4% average weekly change). Reported Earnings • May 15
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: ₹8.01 (down from ₹9.48 in FY 2024). Revenue: ₹23.2b (down 5.3% from FY 2024). Net income: ₹3.85b (down 16% from FY 2024). Profit margin: 17% (down from 19% in FY 2024). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 12%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Professional Services industry in India. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 26% per year, which means it is well ahead of earnings. Announcement • Apr 28
RITES Limited to Report Q4, 2025 Results on May 14, 2025 RITES Limited announced that they will report Q4, 2025 results on May 14, 2025 Announcement • Apr 21
Rites Limited Announces Board and Committee Changes RITES Limited announced that The resignation tendered by Shri Arun Kumar Singh (DIN:09747776) Director (Projects) of the Company citing personal commitments, has been approved by the Competent Authority w.e.f. May 5, 2025 and communicated to the Company vide letter dated 21 April 2025. Consequently, he shall also cease to be Chairman of Risk Management Committee and Project Investment Committee as well as member of the Audit Committee of the Company w.e.f. May 5, 2025. The letter of resignation received from Shri Arun Kumar Singh is enclosed herewith. Deepak Tripathi (DIN: 10090267) currently serving as Director (Technical) of the Company with the additional charge of the post of Director (Projects) of the Company for a period of 6 months w.e.f. May 5, 2025 or till assumption of charge of the post by the regular incumbent or until further orders whichever is the earliest. Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to ₹256, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 29x in the Professional Services industry in India. Total returns to shareholders of 126% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹326 per share. Announcement • Mar 01
RITES Limited Announces Senior Management Changes RITES Limited announced that following changes have taken place in the Senior Management of the Company: Shri S. Sridhar, Dy. CVO and Vertical Head (Vigilance) has superannuated effective end of office hours on February 28, 2025 and thereby ceased to be among the Senior Management of the Company. Shri Abhas Kumar, GGM (Vigilance) has been designated as Dy. CVO and Vertical Head (Vigilance) effective March 1, 2025, and is thereby included in the Senior Management of the Company. Shri Abhas Kumar has done M. Tech in Transport Engineering and is a Associate Member of The Institute of Engineers. He has over 37 years of multi- disciplinary professional experience. He has been with RITES Limited since September 1987. Major Estimate Revision • Feb 04
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from ₹24.8b to ₹22.4b. EPS estimate also fell from ₹8.10 per share to ₹7.15 per share. Net income forecast to grow 1.3% next year vs 26% growth forecast for Professional Services industry in India. Consensus price target down from ₹327 to ₹266. Share price fell 6.5% to ₹233 over the past week. Announcement • Jan 30
RITES Limited Announces Executive Changes RITES Limited informed that following changes have taken place in the Senior Management of the Company: Shri Surendra Singh Kshatriya, GGM (F&A) has been relieved from RITES Limited on January 30, 2025, afternoon to join as Director (Finance) of Mineral Exploration & Consultancy Limited (MECL) and thereby ceased to be among the Senior Management of the Company. Shri Satya Bhushan Samanta, GGM (FE) has been designated as Vertical Head (Finance) with effect from January 30, 2025, afternoon and is thereby included in the Senior Management of the Company. Shri Satya Bhushan Samanta is a qualified Cost and Management Accountant as well as a Chartered Accountant, and he has over 28 years of multi- disciplinary professional experience. He has been with RITES Limited since June 2016. Prior to joining RITES, he was with IREL(India) Limited, Department of Atomic Energy, Government of India and has held various key positions in Finance Department at its Kerala Mineral Division unit. Reported Earnings • Jan 29
Third quarter 2025 earnings released: EPS: ₹2.08 (vs ₹2.50 in 3Q 2024) Third quarter 2025 results: EPS: ₹2.08 (down from ₹2.50 in 3Q 2024). Revenue: ₹6.14b (down 10% from 3Q 2024). Net income: ₹1.00b (down 17% from 3Q 2024). Profit margin: 16% (down from 18% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Professional Services industry in India. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Announcement • Jan 28
RITES Limited Approves Third Interim Dividend for the Financial Year 2024-25 RITES Limited at the Board of Directors meeting held on January 28, 2025 approved declaration of (Third) interim dividend for the Financial Year 2024-25 at the rate of INR 1.90 per share (19.00% of paid-up share capital) of the Company. Further, the record date set for the purpose of payment of (third) interim dividend for Financial Year 2024-25 is February 01, 2025. Announcement • Jan 22
RITES Limited Announces Executive Changes RITES Limited announced amendments that following changes has taken place in the Senior Management of the Company: Shri M. L. Meena, GGM/Civil & RH (NRPO) transferred to RI Vertical Gurgaon effective January 22, 2025 and thereby ceased to be among the Senior Management of the Company. Shri Anoop Sharma, GGM/Civil is taking over charge as Regional Head/NRPO on transfer of Shri M. L. Meena, GGM/Civil to RI Vertical Gurgaon effective January 22, 2025 and is thereby included in the Senior Management of the Company. Details of Shri Anoop Sharma: He holds a B.E. in Civil Engineering from Kurukshetra University and Diploma in Civil Engineering. With over 27 years of extensive experience, he has specialized in PMC Construction, Supervision and Tendering. His career includes significant tenures at Braithwaite & Co., IRCON International, and RITES, where he contributed in the projects of EMRS schools (18 nos) & NVS schools (5 nos), TURA medical project, Tezu, Jorhat & Shillong airports buildings for north east civil projects in Assam, Mizoram, Manipur, Meghalaya & Tripura having total value of projects more than 1500 crs. Announcement • Jan 16
RITES Limited to Report Q3, 2025 Results on Jan 28, 2025 RITES Limited announced that they will report Q3, 2025 results on Jan 28, 2025 Announcement • Jan 13
Rites Limited Announces Cessation of Likha Togu as Non-Official Independent Director RITES Limited announced that Shri Likha Togu (DIN: 09470640) as Non-Official Independent Director on the Board of the Company has ended on January 13, 2025. List of Board of Directors of RITES Limited as on January 14, 2025 Shri Rahul Mithal Chairman & Managing Director, Shri Arun Kumar Singh Director (Projects), Dr. Deepak Tripathi Director (Technical), Shri Krishna Gopal Agarwal Director (Finance), Shri Sandeep Jain Government Nominee Director, Shri Shailendra Singh Government Nominee Director. Announcement • Dec 13
RITES Limited Announces Management Changes RITES Limited informed that following changes has taken place in the Senior Management of the Company: Shri Shrirang Dharmaji Kamble, GGM/Civil & WRPO repatriated to Ministry of Railways w.e.f. December 13, 2024 and thereby ceased to be among the Senior Management of the Company. Shri N D Patankar, GGM/Civil is taking over charge as Regional Head/WRPO on repatriation of Shri Shrirang Dharmaji Kamble, GGM/Civil to Ministry of Railways w.e.f. December 13, 2024 and is thereby included in the Senior Management of the Company. Shri N D Patankar holds a B.E. in Civil Engineering from SPCE, Mumbai, and an M. Tech in Construction Engineering and Management from I.I.T Delhi. With over 23 years of extensive experience, he has specialized in infrastructure project planning, implementation, monitoring, procurement, contract management, business development, and revenue generation. His career includes significant tenures at BARC, MMRDA, and RITES, where he contributed to residential, commercial, strategic, and metro rail projects. Notably, he has played a key role in planning and executing various metro lines in Mumbai, such as Line-2A, 2B, 4, and 4A. Before joining RITES, he served as a Class-1 Gazetted Officer at the Bhabha Atomic Research Centre for nearly 20 years. Price Target Changed • Nov 20
Price target decreased by 7.8% to ₹327 Down from ₹354, the current price target is an average from 4 analysts. New target price is 19% above last closing price of ₹275. Stock is up 17% over the past year. The company is forecast to post earnings per share of ₹9.20 for next year compared to ₹9.48 last year. Announcement • Nov 08
RITES Limited Announces Cessation of Directors RITES Limited informed that Hon'ble President of India through Ministry of Railways, Govt. of India order dated November 09, 2021 had appointed Dr. Godawari Mishra and Shri Laxman T. Tapashi as Non-Official Independent Director on the Board of the Company and subsequently appointment was also approved by the shareholders of the Company by passing special resolution through postal ballot. The company informed that the tenure of appointment of Dr. Godawari Mishra and Shri Laxman T. Tapashi as Non-Official Independent Director on the Board of the Company has ended on 8th November, 2024. Consequently, Dr. Godawari Mishra and Shri Laxman T. Tapashi have ceased to be Independent Director of the Company with effect from close of business hours on 8th November, 2024. Declared Dividend • Nov 08
Second quarter dividend of ₹1.75 announced Shareholders will receive a dividend of ₹1.75. Ex-date: 14th November 2024 Payment date: 6th December 2024 Dividend yield will be 4.9%, which is higher than the industry average of 1.1%. Sustainability & Growth Dividend is covered by earnings (59% earnings payout ratio) but not covered by cash flows (125% cash payout ratio). The dividend has increased by an average of 23% per year over the past 6 years. However, payments have been volatile during that time. EPS is expected to grow by 119% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 07
Second quarter 2025 earnings released: EPS: ₹1.52 (vs ₹2.11 in 2Q 2024) Second quarter 2025 results: EPS: ₹1.52 (down from ₹2.11 in 2Q 2024). Revenue: ₹5.62b (down 3.5% from 2Q 2024). Net income: ₹729.8m (down 28% from 2Q 2024). Profit margin: 13% (down from 17% in 2Q 2024). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Professional Services industry in India. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 27% per year, which means it is well ahead of earnings. Announcement • Nov 01
RITES Limited Announces Executive Changes RITES Limited announced following changes have taken place in the Senior Management of the Company: Shri Anjeev Kumar Jain, Executive Director (Finance) has been relieved from RITES Limited on November 01, 2024, afternoon to join as Director (Finance) of NBCC (India) Limited and thereby ceased to be among the Senior Management of the Company. Shri Surendra Singh Kshatriya, GGM (F&A) has been designated as Vertical Head (Finance) with effect from November 01, 2024, afternoon and is thereby included in the Senior Management of the Company. Shri Surendra Singh Kshatriya is a qualified Chartered Accountant and he has over 29 years of multi-disciplinary professional experience. He joined RITES Limited in August, 2022. Prior to joining RITES, he had a long stint of more than 26 years holding various key positions in Finance Department of Steel Authority of India Limited (SAIL). Shri Surendra Singh Kshatriya, is not related to any other Director/KMP of the Company. Announcement • Oct 22
RITES Limited Announces Resignation of Dineshananda Goswami as Independent Director RITES Limited announced that Dr. Dineshananda Goswami, has tendered his resignation as the Independent Director of the Company, with effect from 22nd October, 2024, citing pre-occupation and other personal commitments. Consequently, he shall also cease to be Chairman of the Audit Committee and Risk Management Committee and member of Project Investment Committee of the Company. Announcement • Oct 17
RITES Limited to Report Q2, 2025 Results on Nov 06, 2024 RITES Limited announced that they will report Q2, 2025 results on Nov 06, 2024 Price Target Changed • Oct 10
Price target increased by 30% to ₹459 Up from ₹354, the current price target is an average from 4 analysts. New target price is 46% above last closing price of ₹314. Stock is up 33% over the past year. The company is forecast to post earnings per share of ₹9.65 for next year compared to ₹9.48 last year. Upcoming Dividend • Sep 13
Upcoming dividend of ₹5.00 per share Eligible shareholders must have bought the stock before 20 September 2024. Payment date: 12 October 2024. Payout ratio is on the higher end at 94%, and the cash payout ratio is above 100%. Trailing yield: 2.6%. Within top quartile of Indian dividend payers (1.0%). Higher than average of industry peers (1.0%). Announcement • Aug 16
RITES Limited, Annual General Meeting, Sep 12, 2024 RITES Limited, Annual General Meeting, Sep 12, 2024, at 11:00 Indian Standard Time. Declared Dividend • Aug 16
Dividend of ₹5.00 announced Shareholders will receive a dividend of ₹5.00. Ex-date: 20th September 2024 Payment date: 12th October 2024 Dividend yield will be 2.6%, which is higher than the industry average of 1.1%. Sustainability & Growth Dividend is not adequately covered by earnings (94% earnings payout ratio) nor is it covered by cash flows (147% cash payout ratio). The dividend has increased by an average of 23% per year over the past 6 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 4.8% to bring the payout ratio under control. EPS is expected to grow by 87% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Major Estimate Revision • Aug 07
Consensus EPS estimates fall by 25% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from ₹25.70 to ₹19.30 per share. Revenue forecast steady at ₹25.7b. Net income forecast to grow 15% next year vs 21% growth forecast for Professional Services industry in India. Consensus price target down from ₹755 to ₹709. Share price fell 2.5% to ₹697 over the past week. Declared Dividend • Aug 02
First quarter dividend of ₹2.50 announced Shareholders will receive a dividend of ₹2.50. Ex-date: 8th August 2024 Payment date: 30th August 2024 Dividend yield will be 2.5%, which is higher than the industry average of 1.1%. Sustainability & Growth Dividend is not adequately covered by earnings (94% earnings payout ratio) nor is it covered by cash flows (147% cash payout ratio). The dividend has increased by an average of 23% per year over the past 6 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 4.8% to bring the payout ratio under control. EPS is expected to grow by 23% over the next year, which is sufficient to bring the dividend into a sustainable range. Announcement • Aug 01
RITES Limited Announces Executive Changes RITES Limited announced that following changes have taken place in the Senior Management of the Company: Shri Vijay Kumar (Vertical Head, Highways) has superannuated on 31 July 2024 and thereby ceased to be among the Senior Management of the company; Shri Rajesh Naik has been designated as Vertical Head, Highways with effect from 1 August 2024 and is thereby included in the Senior Management of the company. Shri Rajesh Naik is Graduated in Civil Engineering in 1992 from Karnataka University. He is having 32 years of extensive professional and academic experience in various Design of Roads and Construction Supervision, Project Preparation and Execution in the field of roads, highway, Border fencing and Railway projects in India and overseas. Further development of port structure preparation of DPR &TEFR for Railway, Flyover & Mechanised Cargo Handling. He is responsible for Construction & Supervision, Project Program and planning & Preparation activities involving soil and material survey, Road inventories, establishing quality control test standards and procedures for construction, field checking and control of materials and works in conformity with the specification and quality standards, checking of bills and claims, certification on quality of works, preparation and review of soil and material report, Construction methodology, Quantity survey and Cost Analysis. Shri Rajesh Naik is not related to any other director of the company. Reported Earnings • Aug 01
First quarter 2025 earnings released: EPS: ₹3.29 (vs ₹4.49 in 1Q 2024) First quarter 2025 results: EPS: ₹3.29 (down from ₹4.49 in 1Q 2024). Revenue: ₹4.86b (down 11% from 1Q 2024). Net income: ₹790.2m (down 27% from 1Q 2024). Profit margin: 16% (down from 20% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Professional Services industry in India. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 40% per year, which means it is well ahead of earnings. Announcement • Jul 31
RITES Limited Approves First Interim Dividend for the Financial Year 2024-2025 RITES Limited announced that at its board meeting held on July 31, 2024, approved first interim dividend for the financial year 2024-2025 at the rate of INR 2.50 per share (25% of paid-up share capital) of the company. Further, the record date set for the purpose of payment of first interim dividend for financial year 2024-2025 is August 8, 2024. Buy Or Sell Opportunity • Jul 31
Now 22% undervalued The stock has been flat over the last 90 days, currently trading at ₹715. The fair value is estimated to be ₹920, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.7% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 30% in 2 years. Earnings are forecast to grow by 43% in the next 2 years. New Risk • Jul 29
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 95% Cash payout ratio: 147% Minor Risk Share price has been volatile over the past 3 months (8.1% average weekly change). Announcement • Jul 23
RITES Limited to Report Q1, 2025 Results on Jul 31, 2024 RITES Limited announced that they will report Q1, 2025 results on Jul 31, 2024 Buy Or Sell Opportunity • Jul 09
Now 21% undervalued Over the last 90 days, the stock has risen 9.0% to ₹743. The fair value is estimated to be ₹935, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.7% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 30% in 2 years. Earnings are forecast to grow by 43% in the next 2 years. Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₹607, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 29x in the Professional Services industry in India. Total returns to shareholders of 169% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹844 per share. Major Estimate Revision • Jun 04
Consensus revenue estimates decrease by 16% The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from ₹30.6b to ₹25.8b. EPS estimate unchanged from ₹25.70 per share at last update. Professional Services industry in India expected to see average net income growth of 19% next year. Consensus price target broadly unchanged at ₹738. Share price fell 12% to ₹624 over the past week. Buy Or Sell Opportunity • Jun 04
Now 26% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to ₹624. The fair value is estimated to be ₹845, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.1% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 26% in 2 years. Earnings are forecast to grow by 43% in the next 2 years. Announcement • May 30
RITES Limited Recommends Dividend for the Financial Year 2023-24 RITES Limited Recommended Dividend of INR 5.00/- per share (i.e. 50%) on 240,301,887 equity shares of face value of INR 10/each of the Company for the financial year 2023-24, subject To Approve the same by the Shareholders in the upcoming 50th Annual General Meeting of the Company. Upon approval of shareholders, the dividend declared will be paid within thirty (30) days of declaration, subject to deduction of applicable Tax at Source as per the provisions of the Income Tax Act, 1961 and rules framed thereunder. Announcement • May 29
RITES Limited Announces Management Changes RITES Limited informed that following changes have taken place in the Senior Management of the Company: Shri Pankaj Chaudhary, GGM/Civil & RH/ERPO transferred from ERPO/Kolkata to S&CC/Gurugram as Vertical Head (S&CC) and shall be designated as Chief Strategy Officer (CSO). Shri Rajiv Kumar Sinha, GGM/Civil & PU Head/Kolkata transferred from PU Kolkata to ERPO/Kolkata as Regional Head (ERPO). Shri Pankaj Chaudhary has multi-disciplinary professional experience of more than 24 years. He has graduated in Civil Engineering from IIT, Banaras Hindu University and has done Master of Engineering from IIT, University of Roorkee. He was Regional Head of ERPO of RITES and presently posted as Vertical Head (S&CC) and Chief Strategy Officer of the Company. Prior to joining of RITES Limited, he had work for Military Engineering Services. Shri Rajiv Kumar Sinha has overall professional experience of more than 36 years. He has done B.Sc. Engineering from Patna University. He had joined RITES Limited in March 1997. He was PU Head/Kolkata and now transferred to ERPO/Kolkata as Regional Head (ERPO). Prior to joining of RITES Limited, he had work for Ashika Construction Private Limited,Laxmi Narayan Verma Agency and Creative Planner. Date of appointment is May 28, 2024. Reported Earnings • May 29
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: ₹18.95 (down from ₹22.56 in FY 2023). Revenue: ₹25.4b (down 3.4% from FY 2023). Net income: ₹4.55b (down 16% from FY 2023). Profit margin: 18% (down from 21% in FY 2023). Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) also missed analyst estimates by 6.9%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Professional Services industry in India. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 43% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 17
RITES Limited to Report Q4, 2024 Results on May 28, 2024 RITES Limited announced that they will report Q4, 2024 results on May 28, 2024 Buy Or Sell Opportunity • May 06
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to ₹675. The fair value is estimated to be ₹844, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 5.2%. Revenue is forecast to grow by 37% in 2 years. Earnings are forecast to grow by 47% in the next 2 years. Buy Or Sell Opportunity • Apr 15
Now 20% undervalued Over the last 90 days, the stock has risen 27% to ₹665. The fair value is estimated to be ₹836, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 5.2%. Revenue is forecast to grow by 37% in 2 years. Earnings are forecast to grow by 47% in the next 2 years. Announcement • Mar 28
RITES Limited Appoints Shailendra Singh as Government Nominee Director RITES Limited announced that Ministry of Railways has nominated Shri Shailendra Singh, Principal Executive Director/ME (EnHM & Project), Railway Board as part time Government Nominee Director of the Company till he holds the post of Principal Executive Director/ME (EnHM & Project), Railway Board or until further orders, whichever is earlier. The Board of Directors has passed the resolution for the appointment of Shri Shailendra Singh, as an additional Director (Government Nominee Director) through resolution by circulation on March 27, 2024. Shri Shailendra Singh, an IRSME Officer of 1989 batch, mechanical engineer and holding graduate degree in Mechanical Engineering from G.B. Pant University Pantnagar and an M.Tech in Production Engineering from IIT Delhi. Shri Shailendra Singh is currently serving as the Principal Executive Director of Environment and Project at the Railway Board. He embarked on his career journey in 1994 as an Assistant Mechanical Engineer in the Dhanbad Division of Eastern Railway. He has an illustrious career spanning more than 30 years in Indian Railways and has held key introducing concepts like crashworthiness and Centre Buffer Coupler, enhancing the periodicity of ICF coaches' maintenance, and developing various innovative solutions for passenger safety and comfort. During his tenure at the Railway Board, he led teams in conceptualizing and introducing new train services and coach designs, including Humsafar, Tejas, Antyodaya trains, and Anubhuti, Vistadome, and Deen Dayalu coaches. He played a pivotal role in standardizing safety features across coaches, piloting initiatives for bio- toilets, and overseeing the introduction of Mahamana Trains with world-class interiors. Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to ₹586, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 31x in the Professional Services industry in India. Total returns to shareholders of 181% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹827 per share. Buy Or Sell Opportunity • Mar 13
Now 29% undervalued Over the last 90 days, the stock has risen 14% to ₹586. The fair value is estimated to be ₹827, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 5.2%. Revenue is forecast to grow by 37% in 2 years. Earnings are forecast to grow by 47% in the next 2 years. Announcement • Feb 28
RITES Limited Announces Company Secretary and Compliance Officer Changes RITES Limited passed the resolution for appointment of Mr. Ashok Mishra, a fellow member of The Institute of Company Secretaries of India as Company Secretary and Compliance Officer of the Company in place of Shri Nikhil Agarwal, DGM (Finance & CS) effective February 28, 2024. This is to further inform that Shri Nikhil Agarwal ceased to be the Company Secretary and Compliance Officer of the Company effective February 28, 2024. Price Target Changed • Feb 05
Price target increased by 43% to ₹694 Up from ₹486, the current price target is an average from 4 analysts. New target price is 7.3% below last closing price of ₹749. Stock is up 127% over the past year. The company is forecast to post earnings per share of ₹20.35 for next year compared to ₹22.56 last year. Reported Earnings • Feb 03
Third quarter 2024 earnings released: EPS: ₹5.00 (vs ₹5.83 in 3Q 2023) Third quarter 2024 results: EPS: ₹5.00 (down from ₹5.83 in 3Q 2023). Revenue: ₹6.83b (flat on 3Q 2023). Net income: ₹1.20b (down 14% from 3Q 2023). Profit margin: 18% (down from 21% in 3Q 2023). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Professional Services industry in India. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 39% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Feb 03
Third quarter dividend of ₹4.75 announced Shareholders will receive a dividend of ₹4.75. Ex-date: 9th February 2024 Payment date: 2nd March 2024 Dividend yield will be 2.7%, which is higher than the industry average of 1.1%. Sustainability & Growth Dividend is not adequately covered by earnings (99% earnings payout ratio) nor is it covered by cash flows (111% cash payout ratio). The dividend has increased by an average of 25% per year over the past 6 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 10.0% to bring the payout ratio under control. EPS is expected to grow by 52% over the next 2 years, which is sufficient to bring the dividend into a sustainable range. Announcement • Feb 02
RITES Limited Announces Change in Management RITES Limited announced that following changes have taken place in the Senior Management of the Company. Shri Debasish Majumdar (Vertical Head/Technical Services) has superannuated on 31 January 2024 (from closure of business hours) and thereby ceased to be among the Senior Management of the Company. Shri Sandeep Jain (ED/Mech) has been designated as Vertical Head/Technical Services and is thereby included in the Senior Management of the Company. Mr. Sandeep Jain, a graduate in Mech. Engg and Post Graduate in Thermal Engg from IIT/Delhi in 1989 & 1991 respectively. He is also an MBA (Finance). He joined Indian Railways in 1991 (IRSME 1991 Batch) and has worked in different capacities as Nodal officer in Railway Board on Disaster Management. He was also a Nodal Officer in manufacturing of LHB Coaches at RCF/Kapurthala. Incharge of Diesel Shed Shakurbasti developed facilities for DEMU maintenance. Under his supervision, CNG and biodiesel was introduced first time in Indian Railways. After serving for 21 years, has joined RITES on deputation in November, 2013 and took absorption in December, 2017 in RITES. He has rich professional experience of nearly 32 years in various fields which includes Operation & Maintenance, Safety, Manufacturing, Product Development, Wet Leasing, Export of Rolling Stock, Quality Assurance, Inspection, Development of digital platforms, Installation & Commissioning of Machine & Plants, Setting up of Infrastructure projects, People management, Business Development etc. He has worked in various positions in RITES in the capacity of GGM/SBU Head (QA), GM (Expotech & S&CC) etc. He is presently working as Vertical Head/TS and has also been appointed as Nominee Director in SRBWIPL,a Joint Venture of SAIL & RITES. He has been responsible for various projects in RES Division performing duties as Strategic Business Unit Head of Railway Equipment Services (RES) which deals with Loco leasing and O&M of Rail assets by running the mini-railway system at sites such as power plants, coal mines, steel plants, container depots, ports etc and ensured overall management/administration of RES Sub Unit having 43 sites for O&M, leasing of 74 nos. of locos on 33 sites across India, and 05 infrastructure projects i.e. Setting up of Workshops & maintenance facilities for wagons, coaches, DEMU/MEMU etc. across India. He ensured diversification of Loco leasing business with comprehensive AMC of yard including loco, track OHE, S&T etc. in one package for clients. In QA vertical also he was instrumental in increasing turnover from about 115 crore in 2013-14 to 391 crore in year 2022-23. In Expotech Divison, prestigious order from CFM, Mozambique of 6 Locomotives, 60 loco hauled coaches & 5 DEMU sets comprising of 6 coaches. Under his leadership, RES Vertical secured the "Best Business Vertical Award (Golden trophy)" for the year 2022-2023. 