Rites Ltd logo

Rites Ltd

RITES NSE

Established in 1974, RITES Limited is a public sector enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The company is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia). [1]

AI Verdict: HOLD Confidence: 5%

RITES Ltd trades at a PE of 21.8x with a healthy dividend yield of 2.52-3.67% and near-zero debt, but weak sales CAGR of -3% over 3 years and a -28% stock decline in the past year signal growth headwinds. The 75% analyst buy rating provides some comfort, but muted profit growth warrants patience before adding positions.

Key Fundamentals

MicrocapCivil ConstructionConstruction
Market Cap
₹10,026 Cr
Volatility
Moderate
P/E Ratio
24.49
EBITDA
₹554 Cr
Return on Equity
21%
Debt to Equity
0
Book Value
₹55.79
EPS
₹17.74
52W High
₹299.8
52W Low
₹175

Technical Indicators

Key Insights

Strengths

4
  • Company has reduced debt.
  • Company is almost debt free.
  • Stock is providing a good dividend yield of 3.63%.
  • Company has been maintaining a healthy dividend payout of 102%

Weaknesses

1
  • The company has delivered a poor sales growth of 4.86% over past five years.

Growth Rate

Revenue Growth
3.94% ↘
Net Income Growth
6.93% ↘
Cash Flow Change
47.62% ↗
ROE
-15.33% ↘
ROCE
-15.60% ↘
EBITDA Margin (Avg.)
-18.27% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 26d ago
HOLD
Risk medium

RITES Ltd trades at a PE of 21.8x with a healthy dividend yield of 2.52-3.67% and near-zero debt, but weak sales CAGR of -3% over 3 years and a -28% stock decline in the past year signal growth headwinds. The 75% analyst buy rating provides some comfort, but muted profit growth warrants patience before adding positions.

Bull Case 8
  • Company is virtually debt-free, giving it a clean balance sheet and financial flexibility to bid for large infrastructure projects
  • Dividend yield of 3.67% with a payout ratio of 102% offers strong income visibility for conservative investors
  • 75% of analysts (3 out of 4) rate the stock a Buy, indicating institutional confidence in the business model
  • 5-year ROE average of 18% demonstrates consistent capital efficiency and profitability
  • TTM revenue growth of 9% shows a recovery trend after 3-year sales CAGR of -3%
  • TTM profit growth of 7% indicates earnings are rebounding from the 3-year CAGR decline of -9%
  • 10-year compounded sales growth of 7% reflects a stable long-term revenue base supported by government infrastructure spending
  • Market cap of Rs 9,875 crore positions RITES as a mid-cap with room for re-rating as order inflows improve
Bear Case 8
  • Stock has declined 28% over the past 1 year, significantly underperforming the broader market and indicating negative sentiment
  • 3-year compounded sales CAGR of -3% reflects a sustained period of revenue contraction
  • 3-year compounded profit CAGR of -9% shows meaningful earnings deterioration over the medium term
  • 5-year compounded profit CAGR of -1% indicates the company has failed to grow earnings over a full business cycle
  • Last year ROE of 15% has declined from the 5-year average of 18%, suggesting deteriorating return efficiency
  • PE of 21.8x appears elevated for a company delivering only 5% 5-year sales CAGR, implying limited margin of safety
  • Dividend payout of 102% exceeding net profits is unsustainable long-term and limits reinvestment capacity
  • Poor 5-year sales growth of only 4.86% raises concerns about RITES' ability to scale in a competitive consulting market

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 25d ago
Positives 3
  • FY26 PAT up, dividend declared May 19

    Standalone PAT rose to ₹400.66 Cr in FY26 from ₹380.22 Cr in FY25 (~5.4% YoY growth). Board recommended final dividend of ₹2.75 per share for FY2025-26.

  • MoU with Crisil signed May 27

    RITES and Crisil signed an MoU to jointly offer data-driven infrastructure solutions across railways, airports, and other sectors.

  • Philippines office opened May 14

    RITES opened a Representative Office in the Philippines ('Rites Limited SE-Asia Rep. Ofc.') to support business development in the region, signalling international expansion.

Neutral 5
  • Govt holds 72.20% stake May 28

    Government of India holds 72.20% stake in RITES as of March 31, 2026. No shares were pledged during FY26.

  • New Govt Nominee Director appointed May 27

    Shri Atul Singh appointed as part-time Government Nominee Director on May 27, 2026, replacing Shri Vinod Kumar who ceased on May 4 after moving to Defence.

  • Senior management restructuring May 5

    RITES restructured verticals, appointed Shri Navneet Kumar as Regional Head/NRPO, and created a new Airports and Ports (AP) vertical effective May 5, 2026.

  • CSO/COO transferred to subsidiary May 14

    Shri Manish Tiwari ceased as CSO and COO effective May 14, 2026, following his transfer to subsidiary REMCL.

  • Q4FY26 conference call scheduled May 14

    RITES organised a conference call on May 20, 2026 to discuss financial results for Q4 and full year ended March 31, 2026.

TL;DR: RITES delivered modest PAT growth of ~5.4% YoY in FY26 with a healthy dividend payout, while pursuing international expansion (Philippines) and new partnerships (Crisil MoU). No material headwinds emerged, though multiple senior management changes bear watching for execution continuity. The trend is stable with incremental growth drivers from geographic and sectoral diversification.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
687
544
582
683
643
486
541
576
602
490
549
609
768
Expenses
496
383
445
514
467
380
435
458
417
376
419
466
600
Operating Profit
191
161
138
169
176
106
106
117
186
114
130
142
168
OPM %
28%
30%
24%
25%
27%
22%
20%
20%
31%
23%
24%
23%
22%
Other Income
19
18
28
19
27
25
22
44
27
24
35
30
35
Interest
2
1
1
2
0
1
2
1
1
1
1
1
1
Depreciation
17
16
14
15
16
14
15
16
17
15
17
17
16
PBT
191
163
150
171
187
115
111
144
195
122
146
154
186
Tax %
27%
26%
27%
25%
27%
21%
26%
24%
27%
25%
25%
25%
25%
Net Profit
139
120
110
129
137
90
82
109
141
91
109
115
139
EPS in Rs
2.75
2.25
2.1
2.5
2.62
1.64
1.52
2.08
2.76
1.67
2.04
2.12
2.7
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
1,013
1,218
1,351
1,497
2,047
2,474
1,905
2,662
2,628
2,453
2,218
2,415
Expenses
664
871
1,005
1,071
1,469
1,811
1,353
1,933
1,869
1,792
1,675
1,861
Operating Profit
348
347
347
427
578
663
552
729
759
661
543
554
OPM %
34%
29%
26%
28%
28%
27%
29%
27%
29%
27%
24%
23%
Other Income
147
208
210
154
200
268
101
84
103
92
118
123
Interest
2
1
14
25
10
10
9
13
21
21
34
4
Depreciation
26
37
38
36
38
47
52
66
67
61
62
66
PBT
468
518
505
519
730
874
593
735
774
670
565
608
Tax %
33%
34%
33%
31%
33%
28%
25%
27%
26%
26%
25%
25%
Net Profit
312
340
337
357
490
633
444
539
571
495
424
454
EPS in Rs
12.49
13.55
6.57
6.85
9.39
12.32
9
10.74
11.28
9.48
8.01
8.54
Div. Payout %
20%
40%
46%
32%
54%
65%
72%
79%
91%
95%
94%
115%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
100
100
200
200
200
250
240
240
240
240
481
481
Reserves
1,576
1,707
1,838
2,014
2,222
2,383
2,152
2,248
2,363
2,369
2,160
2,201
Borrowings
0
173
83
55
48
47
37
28
5
8
9
7
Other Liabilities
1,929
2,531
2,678
2,901
2,956
3,222
3,408
3,326
3,381
3,047
3,472
3,238
Total Liabilities
3,605
4,511
4,799
5,170
5,426
5,903
5,837
5,842
5,991
5,664
6,121
5,926
Fixed Assets
212
476
406
402
478
590
584
560
552
535
884
868
CWIP
26
34
5
2
4
4
15
58
101
174
48
88
Investments
226
220
328
133
141
261
289
205
130
109
117
104
Other Assets
3,141
3,781
4,060
4,633
4,803
5,047
4,948
5,020
5,208
4,846
5,072
4,866
Total Assets
3,605
4,511
4,799
5,170
5,426
5,903
5,837
5,842
5,991
5,664
6,121
5,926
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-89
463
555
410
164
319
516
310
560
432
637
327
Investing
291
-520
-56
-454
139
49
194
62
163
-315
-205
126
Financing
-38
39
-215
-217
-279
-420
-708
-376
-483
-504
-405
-424
Net Cash Flow
165
-18
284
-261
24
-52
2
-5
239
-387
27
30
Free Cash Flow
-196
269
540
348
12
207
436
168
424
295
505
266
CFO/OP
15
186
208
138
70
80
112
68
98
99
148
79
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
137
161
125
114
109
124
112
101
126
134
122
141
Inventory Days
32
—
—
22
302
11
—
81
96
—
—
11
Days Payable
408
—
—
184
572
144
—
105
589
—
—
105
Cash Conversion Cycle
-239
161
125
-47
-161
-9
112
77
-367
134
122
47
Working Capital Days
-464
-427
-449
-454
-297
-240
-335
-234
-219
-203
-279
-174
ROCE %
30%
28%
21%
24%
30%
33%
23%
29%
30%
25%
22%
22%

Shareholding Pattern

As of Mar 2026
Promoters 72.20%
Public 13.94%
DIIs 8.70%
FIIs 3.47%
Others 1.68%
Total 99.99%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
72.20%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
4.18%
3.50%
3.19%
3.34%
3.33%
3.47%
3.52%
3.46%
3.47%
DIIs
15.43%
16.15%
16.50%
16.67%
16.87%
17.25%
17.56%
15.78%
15.90%
15.25%
12.63%
12.20%
11.10%
10.78%
9.64%
8.83%
8.67%
8.64%
8.66%
8.64%
8.70%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
7.67%
7.67%
7.41%
7.12%
6.86%
6.59%
5.56%
6.99%
6.32%
6.97%
8.36%
9.42%
9.51%
10.78%
12.32%
13.25%
13.59%
13.48%
13.80%
13.85%
13.94%
Others
4.70%
3.97%
3.88%
4.00%
4.07%
3.96%
4.67%
5.03%
5.58%
5.58%
6.80%
6.17%
3.02%
2.73%
2.65%
2.38%
2.21%
2.21%
1.82%
1.85%
1.68%
No. of Shareholders
1,11,737
1,07,655
1,00,837
97,539
1,02,238
1,01,761
95,236
1,11,693
1,11,701
1,23,074
1,45,094
1,62,986
2,35,296
2,65,984
3,31,164
3,91,469
4,11,725
4,02,334
4,03,176
3,92,562
3,86,213

Documents

Frequently Asked Questions about Rites Ltd

What does Rites Ltd do?
Established in 1974, RITES Limited is a public sector enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The company is the only export arm of Indian Railways for providing rolling stock overseas (other...
Where is Rites Ltd (RITES) listed?
Rites Ltd is listed on the Indian stock exchanges. It is listed on NSE: RITES and BSE: 541556. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Rites Ltd belong to?
Rites Ltd operates in the Industrials sector within the Construction industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Rites Ltd?
Rites Ltd has a market capitalisation of approximately ₹10026.36 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Rites Ltd?
The Price-to-Earnings (PE) ratio of Rites Ltd is 24.49. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Rites Ltd?
Over the past 52 weeks, Rites Ltd has traded between a low of ₹175 and a high of ₹299.8. This range helps investors understand the stock's price volatility and recent trading levels.
Does Rites Ltd pay dividends?
Yes, Rites Ltd has a dividend yield of 2.50%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Rites Ltd?
Rites Ltd has a Return on Equity (ROE) of 21.00%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Rites Ltd on Tapetide?
On Tapetide, you can view Rites Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Established in 1974, RITES Limited is a public sector enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The company is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia). [1]

Website rites.com
CEO Mr. Rahul Mithal
Employees 1,793
Listed 2018-07-02
Face Value ₹ 10
Issued Size 48,06,03,774

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