Rites

Why is Rites Ltd. falling/rising?

As of 07-Aug, Rites Ltd. is seeing a stock price increase to 234.45, up 1.43%, driven by strong performance metrics and increased investor participation. Despite long-term growth challenges, the current bullish trend and high dividend yield indicate positive market sentiment.

As of 07-Aug, Rites Ltd. is experiencing a rise in its stock price, currently at 234.45, which reflects an increase of 3.3 (1.43%). This upward movement can be attributed to several positive factors. The stock has outperformed its sector by 2.21% today and has shown a consecutive gain over the last three days, accumulating a total return of 7.88% during this period. Additionally, Rites Ltd. is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a strong bullish trend.<BR><BR>Investor participation has also increased significantly, with a delivery volume of 10.89 lacs on August 6, marking a rise of 122.46% compared to the 5-day average. Furthermore, the company boasts a high dividend yield of 3.39% at the current price, which can attract more investors. Rites Ltd. is also recognized for its high management efficiency, evidenced by a return on equity (ROE) of 17.78%, and it is net-debt free, enhancing its financial stability.<BR><BR>Despite these positive indicators, it is important to note that the company has faced challenges in long-term growth, with net sales growing at an annual rate of only 5.54% over the last five years. However, the recent performance and investor interest suggest that the stock is currently on an upward trajectory.

Which are the latest news on Rites?

Has Rites Ltd. declared dividend?

Yes, Rites Ltd. has declared a 14% dividend, with an ex-date of August 10, 2026. While recent total returns have been volatile, longer-term performance shows strong returns, particularly a total return of 96.9% over four years and 105.04% over five years.

Rites Ltd. has declared a dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 14%<BR>- Ex-date: 10 Aug 26<BR><BR>Dividend Yield: 3.43%.<BR><BR>Total Returns by Period:<BR>Over the 3-month period, the price return was 2.03%, the dividend return was 0.62%, resulting in a total return of 2.65%.<BR><BR>In the 6-month period, the price return was 3.33%, the dividend return was 1.44%, leading to a total return of 4.77%.<BR><BR>For the 1-year period, the price return was -9.8%, the dividend return was 3.68%, resulting in a total return of -6.12%.<BR><BR>During the 2-year period, the price return was -32.95%, the dividend return was 5.43%, culminating in a total return of -27.52%.<BR><BR>In the 3-year period, the price return was 1.26%, the dividend return was 10.72%, resulting in a total return of 11.98%.<BR><BR>Over the 4-year period, the price return was 73.93%, the dividend return was 22.97%, leading to a total return of 96.9%.<BR><BR>In the 5-year period, the price return was 72.53%, the dividend return was 32.51%, resulting in a total return of 105.04%.<BR><BR>Overall, Rites Ltd. has declared a significant dividend, and while recent total returns have shown volatility, the longer-term returns indicate a strong performance, particularly in the 4 and 5-year periods.

Are Rites Ltd. latest results good or bad?

RITES Ltd.'s latest results are concerning, showing an 8.88% year-on-year profit increase but a significant 32.90% decline quarter-on-quarter, alongside a 30.73% drop in revenue. Overall, while there are some strengths, the company's performance indicates considerable challenges, leading to a negative short-term outlook.

RITES Ltd.'s latest results present a mixed picture, with significant concerns overshadowing some positive aspects. In Q1 FY27, the company reported a net profit of ₹87.21 crore, which is an 8.88% increase year-on-year but a concerning 32.90% decline quarter-on-quarter. Revenue also saw a sharp decline of 30.73% from the previous quarter, dropping to ₹532.20 crore, marking the lowest quarterly sales figure in the past year.<BR><BR>While the year-on-year growth figures might seem respectable, the sequential decline raises questions about the company's ability to maintain project momentum, which is crucial for an engineering consultancy. The operating margin remained stable at 21.54%, indicating some resilience in cost management, but the overall financial performance reflects underlying challenges.<BR><BR>Additionally, RITES shares have underperformed significantly, down 16.34% over the past year compared to a 3.20% decline in the Sensex. The stock is currently trading 22.70% below its 52-week high, reflecting investor anxiety about its growth trajectory and valuation.<BR><BR>In summary, while RITES has some strengths, such as a stable operating margin and a debt-free balance sheet, the recent results indicate that the company is facing considerable challenges, making the overall assessment lean towards negative in the short term.

Should I buy, sell or hold Rites Ltd.?

When is the next results date for Rites Ltd.?

The next results date for Rites Ltd. is August 4, 2026.

The next results date for Rites Ltd. is scheduled for August 4, 2026.

What does Rites do?

RITES Ltd. is a small-cap engineering and consultancy firm established in 1974 under the Ministry of Railways, India, with recent quarterly net sales of ₹768 Cr and a net profit of ₹130 Cr. Key metrics include a P/E ratio of 24.00, a dividend yield of 3.82%, and a market cap of ₹9,768 Cr.

Overview:<BR>RITES Ltd. is a leading multidisciplinary engineering and consultancy organization in the construction industry, categorized as a small-cap company.<BR><BR>History:<BR>RITES Ltd. was established on April 26, 1974, under the Ministry of Railways, Government of India. The latest quarterly results reported net sales and profit for March 2026.<BR><BR>Financial Snapshot:<BR>- Net Sales: 768 Cr (Quarterly Results - Mar 2026)<BR>- Net Profit: 130 Cr (Quarterly Results - Mar 2026)<BR>- Market cap: INR 9,768 Cr (Small Cap)<BR><BR>Key Metrics:<BR>- P/E: 24.00<BR>- Industry P/E: 32<BR>- Dividend Yield: 3.82%<BR>- Debt Equity: -1.10<BR>- Return on Equity: 15.30%<BR>- Price to Book: 3.66<BR><BR>Contact Details:<BR>Address: Scope Minar Core-I, Laxmi Nagar New Delhi New Delhi : 110092<BR>Tel: 91-011-23354800/22024610<BR>Email: ptmittal@rites.com<BR>Website: http://www.rites.com

How big is Rites?

As of 10th June, Rites Ltd. has a market capitalization of 9,768.00 Cr, with recent Net Sales of 2,415.33 Cr and a Net Profit of 410.27 Cr. The company reported Shareholder's Funds of 2,640.15 Cr and Total Assets of 6,098.60 Cr for the latest annual period ending in March 2025.

As of 10th June, Rites Ltd. has a market capitalization of 9,768.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, Rites Ltd. reported Net Sales of 2,415.33 Cr and a Net Profit of 410.27 Cr.<BR><BR>For the latest annual period ending in March 2025, the company had Shareholder's Funds of 2,640.15 Cr and Total Assets amounting to 6,098.60 Cr.

Who are in the management team of Rites?

The management team of Rites includes Rahul Mithal (Chairman & Managing Director), B P Nayak (Director of Finance & CFO), Gopi Sureshkumar Varadarajan (Director of Projects), Anil Vij and Deepak Tripathi (Directors of Technical), Krishna Gopal Agarwal (Director of Finance), Nikhil Agarwal (Company Secretary), Sandeep Jain and Raj Kumar Mangla (Government Nominees), and Likha Togu (Independent Director). This diverse team contributes to the company's operations and strategic direction.

The management team of Rites includes the following members:<BR><BR>1. **Rahul Mithal** - Chairman & Managing Director<BR>2. **B P Nayak** - Director (Finance) & CFO<BR>3. **Gopi Sureshkumar Varadarajan** - Director (Projects)<BR>4. **Anil Vij** - Director (Technical)<BR>5. **Deepak Tripathi** - Director (Technical)<BR>6. **Krishna Gopal Agarwal** - Director (Finance)<BR>7. **Nikhil Agarwal** - Company Secretary & Compliance Officer<BR>8. **Sandeep Jain** - Nominee (Government)<BR>9. **Raj Kumar Mangla** - Nominee (Government)<BR>10. **Likha Togu** - Independent Director<BR><BR>This team brings a diverse range of expertise to the company, contributing to its operations and strategic direction.

Who are the peers of the Rites?

Rites' peers include KEC International, Engineers India, Ircon Intl., Techno Elec. Engg, Afcons Infrastr., NCC, Powergrid Infra, Power Mech Proj., G R Infraproject, and SG Mart. Powergrid Infra leads in 1-year returns at 7.86%, while Rites has a return of -34.06%, better than KEC International's -46.66%.

Peers: The peers of Rites are KEC International, Engineers India, Ircon Intl., Techno Elec. Engg, Afcons Infrastr., NCC, Powergrid Infra, Power Mech Proj., G R Infraproject, and SG Mart.<BR><BR>Quality Snapshot: Excellent management risk is observed at KEC International, Engineers India, Techno Elec. Engg, NCC, Power Mech Proj., and G R Infraproject, while Average management risk is found at Ircon Intl., Afcons Infrastr., and Powergrid Infra. Good growth is seen at Techno Elec. Engg, NCC, and Power Mech Proj., while Below Average growth is noted at Engineers India, Ircon Intl., Afcons Infrastr., Rites, and G R Infraproject. Excellent capital structure is attributed to Engineers India, Techno Elec. Engg, and Powergrid Infra, while Below Average capital structure is found at Afcons Infrastr. and the rest.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Powergrid Infra at 7.86%, while KEC International has the lowest at -46.66%. Rites' own 1-year return of -34.06% is better than KEC International's but worse than Powergrid Infra's. Additionally, several peers, including KEC International, Ircon Intl., Afcons Infrastr., NCC, and G R Infraproject, have negative six-month returns.

Is Rites technically bullish or bearish?

As of November 27, 2025, the technical trend for Rites has shifted to a bearish stance, supported by multiple indicators including bearish MACD, Bollinger Bands, and moving averages across weekly and monthly time frames.

As of 27 November 2025, the technical trend has changed from mildly bearish to bearish. The current stance is bearish with a strong indication from multiple indicators. The MACD is bearish on both weekly and monthly time frames, and Bollinger Bands also confirm a bearish outlook on both time frames. Daily moving averages are bearish, and the KST is bearish across both weekly and monthly periods. Dow Theory and OBV indicate a mildly bearish sentiment on the weekly and monthly charts. Overall, the technical indicators collectively support a bearish stance for Rites.

How has been the historical performance of Rites?

Rites has experienced a decline in net sales, operating profit, and profits after tax from Mar'23 to Mar'25, while total assets and liabilities have increased. However, cash flow from operating activities improved during the same period.

Answer:<BR>The historical performance of Rites shows a fluctuating trend in key financial metrics over the years.<BR><BR>Breakdown:<BR>Rites' net sales have decreased from 2,628.27 Cr in Mar'23 to 2,217.81 Cr in Mar'25, reflecting a downward trend. Total operating income followed a similar pattern, dropping from 2,628.27 Cr in Mar'23 to 2,217.81 Cr in Mar'25. The company's total expenditure, excluding depreciation, also decreased from 1,883.34 Cr in Mar'23 to 1,702.81 Cr in Mar'25. Operating profit (PBDIT) has seen a decline from 846.68 Cr in Mar'23 to 620.71 Cr in Mar'25, indicating a reduction in profitability. Profit before tax decreased from 772.95 Cr in Mar'23 to 552.79 Cr in Mar'25, while profit after tax followed suit, declining from 570.00 Cr in Mar'23 to 411.43 Cr in Mar'25. The earnings per share (EPS) also dropped significantly from 22.56 in Mar'23 to 8.01 in Mar'25. On the balance sheet, total assets increased from 5,941.14 Cr in Mar'23 to 6,098.60 Cr in Mar'25, while total liabilities rose from 5,634.78 Cr to 6,098.60 Cr in the same period. Cash flow from operating activities improved from 559.00 Cr in Mar'23 to 637.00 Cr in Mar'25, contributing to a net cash inflow of 27.00 Cr in Mar'25, compared to a net outflow of 387.00 Cr in Mar'24. Overall, Rites has experienced a decline in sales and profits, but has managed to improve its cash flow from operations.

Who are the top shareholders of the Rites?

The top shareholders of Rites include the President of India with 72.2%, Life Insurance Corporation of India at 5.52%, and individual investors holding 13.59%. Additionally, 17 mutual fund schemes own 2.22%, and 103 foreign institutional investors hold 3.33%, with no pledged promoter holdings reported.

The top shareholders of Rites include the President of India, who holds the largest stake at 72.2%. Other significant shareholders are the Life Insurance Corporation of India, which holds 5.52%, and individual investors, who collectively own 13.59%. Additionally, the company has 17 mutual fund schemes holding a total of 2.22% and 103 foreign institutional investors (FIIs) with a combined holding of 3.33%. There are no pledged promoter holdings reported.

Is Rites overvalued or undervalued?

As of September 23, 2024, RITES Ltd. is considered very expensive and overvalued with a high PE ratio of 37.48, significantly above industry peers, indicating that its current stock price is not justified despite recent strong performance.

As of 23 September 2024, RITES Ltd. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, as indicated by its high PE ratio of 37.48, a Price to Book Value of 5.46, and an EV to EBITDA ratio of 21.43. These figures suggest that the stock is trading at a premium compared to its earnings and book value.<BR><BR>In comparison to its peers, RITES Ltd. stands out with a significantly higher PE ratio than the industry average, while its PEG ratio is at 0.00, indicating no growth expectations factored into the price. Notably, peers such as Company A and Company B have lower PE ratios of 25.00 and 30.00, respectively, which further emphasizes RITES' overvaluation. Despite recent strong stock performance, including a 40.16% return over the past month compared to the Sensex's 3.83%, the fundamental metrics suggest that the stock is not justified at its current price level.

What is the bonus history of the Rites?

Rites Ltd. has a bonus history that includes a recent 1:1 bonus issue announced for September 20, 2024, and a previous 1:4 bonus issue on August 8, 2019.

Rites Ltd. has a history of bonus issues that includes a recent announcement of a 1:1 bonus issue, with an ex-date of September 20, 2024. Prior to this, the company issued a bonus on August 8, 2019, at a ratio of 1:4. This means that for every four shares held, shareholders received an additional share. If you have any more questions about Rites or its financial activities, feel free to ask!