Why is Rites Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 2.56% and Operating profit at 0.59% over the last 5 years
2
Flat results in Sep 25
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 3,092.60 cr
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.47 times
3
With ROE of 15.6, it has a Very Expensive valuation with a 4.2 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -20.69%, its profits have risen by 3.2% ; the PEG ratio of the company is 8.3
- At the current price, the company has a high dividend yield of 3.4
4
Below par performance in long term as well as near term
- Along with generating -20.69% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Rites for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Rites
-20.69%
-0.51
40.40%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
2.56%
EBIT Growth (5y)
0.59%
EBIT to Interest (avg)
95.82
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-1.17
Sales to Capital Employed (avg)
0.93
Tax Ratio
25.71%
Dividend Payout Ratio
94.30%
Pledged Shares
0
Institutional Holding
12.18%
ROCE (avg)
-88.71%
ROE (avg)
18.02%
Valuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
33
Price to Book Value
4.18
EV to EBIT
16.47
EV to EBITDA
14.51
EV to Capital Employed
-17.60
EV to Sales
3.56
PEG Ratio
8.29
Dividend Yield
3.40%
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
15.61%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
4What is working for the Company
OPERATING CF(Y)
Highest at Rs 637.06 Cr
-3What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 3,092.60 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.47 times
Loading Valuation Snapshot...
Here's what is working for Rites
Operating Cash Flow - Annually
Highest at Rs 637.06 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Here's what is not working for Rites
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 3,092.60 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 2.47 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






