RITES Ltd
Ticker: RITES
Decent
72/100
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Investing Reference
Price
250.26
Market Cap
12027.59
Debt/Equity
0.0033
ROE %
14.069
PB
4.3748
Promoter %
72.203
Pledge %
0.000
1Y Rev Growth %
-8.202
5Y Rev Growth %
-3.157
NP Margin %
16.474
NP Margin 5Y Avg %
18.916
Trading Reference
1M Return %
-7.019
6M Return %
7.866
1Y Return %
-18.562
% Away 52W High
27.288
% Away 52W Low
30.073
Daily Volume
255591
Investment Verdict
Hold
Score 63/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 22/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
RITES Ltd is currently trading near its support level, with recent volume indicating accumulation. If it breaks above the resistance level, it could see significant upside in the medium term. However, if it fails to hold the support, there could be a downside risk.
Upside Probability: 15% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
RITES Ltd is a premier consultancy firm in India, specializing in transport infrastructure and related services. It caters to government and private sector clients, playing a crucial role in enhancing the nation's connectivity and logistics. With a strong track record and expertise, RITES contributes significantly to India's economic growth and development.
- Established leader in transport consultancy
- Trusted partner for government and private sectors
- Expertise in railways, highways, and urban transport
- Focus on sustainable and efficient infrastructure solutions
- Contributes to national economic development
Investment Thesis
RITES Ltd stands out as a robust investment due to its strong promoter credibility, promising growth in digital services, and attractive valuation compared to peers. This combination positions RITES for sustained growth and value creation, making it an appealing choice for retail investors.
- Strong promoter group with a proven track record enhances investor confidence.
- Expanding digital services portfolio offers significant growth potential.
- Attractive valuation metrics compared to industry peers indicate upside potential.
- Government contracts provide a stable revenue base and growth visibility.
- Focus on infrastructure development aligns with national priorities, ensuring demand.
Opportunity vs Risk
Opportunities
- Strong government infrastructure projects
- Growing demand for rail services
- Expansion into international markets
- Strategic partnerships with private firms
Risks ⚠️
- Economic slowdown affecting budgets
- Competition from private players
- Regulatory changes impacting operations
- Dependence on government contracts
Peer Perspective
RITES Ltd trades at a discount to peers like IRCON and KNR Constructions, reflecting lower growth expectations. A sustained improvement in margins and project execution could trigger a rerating towards industry averages.
Future Outlook
RITES Ltd is well-positioned for growth, driven by increasing infrastructure demand. However, successful execution and stringent cost control will be crucial to fully capitalize on these opportunities in the coming years.
AI FAQs for Retail Users
- Q: What does RITES Ltd do?A: RITES Ltd provides consultancy services in transport infrastructure and offers project management and engineering services.
- Q: Is RITES Ltd a government company?A: Yes, RITES Ltd is a public sector enterprise under the Ministry of Railways, Government of India.
- Q: What sectors does RITES Ltd operate in?A: RITES operates in railways, highways, urban transport, and renewable energy sectors.
- Q: How can I invest in RITES Ltd?A: You can invest in RITES Ltd through stock exchanges by purchasing shares via a brokerage account.
- Q: What are the risks of investing in RITES Ltd?A: As with any stock, risks include market volatility, regulatory changes, and sector-specific challenges.
📊 Stock Investment Checklist (100 Points)
RITES Ltd • Updated: 2025-09-17 16:20:43
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10BusinessHighRITES operates in the infrastructure sector, which is poised for growth due to government initiatives.
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10GrowthHighConsistent revenue growth over the past few years, though profit margins have fluctuated.
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10ProfitabilityHighROE and ROCE are healthy, but OCF has shown some volatility.
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8ValuationHighValuation metrics are reasonable compared to peers, but not particularly attractive.
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9BalanceHighDebt levels are manageable, with a solid liquidity position.
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7GovernanceHighPromoter holding is strong, but there are some concerns about transparency.
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6DriversGoodGrowth drivers are present, but execution risks remain due to project dependencies.
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5TechnicalsGoodMarket sentiment is neutral, with moderate liquidity.
Final Score & Verdict
Score 72 / 100
• Decent
RITES Ltd shows potential for growth in a favorable sector, but investors should be cautious of execution risks and market volatility.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100