Rites

Market Cap: Small Cap
Industry: Construction
ISIN: INE320J01015
NSEID: RITES
BSEID: 541556
View on NSE | View on BSE

INR

192.25

1.25 (0.65%)

BSENSE

Mar 17

BSE+NSE Vol: 3.78 lacs

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Engineers India

Techno Elec.Engg

G R Infraproject

Cemindia Project

KEC Internationa

Powergrid Infra

Afcons Infrastr.

Rites

NCC

IRB InvIT Fund

Ircon Intl.

Why is Rites Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.69% and Operating profit at 3.17% over the last 5 years

Flat results in Dec 25

CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 3,092.60 cr
DEBTORS TURNOVER RATIO(HY) Lowest at 2.47 times

With ROE of 15.6, it has a Very Expensive valuation with a 3.5 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.19%, its profits have risen by 9.2% ; the PEG ratio of the company is 2.4
At the current price, the company has a high dividend yield of 4.1

Below par performance in long term as well as near term

Along with generating -6.19% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

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

-5.94%

-0.16

37.67%

Sensex

2.56%

0.20

12.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.69%

EBIT Growth (5y)

3.17%

EBIT to Interest (avg)

100.00

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

26.00%

Dividend Payout Ratio

94.30%

Pledged Shares

Institutional Holding

12.10%

ROCE (avg)

-88.71%

ROE (avg)

18.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.50

EV to EBIT

12.14

EV to EBITDA

10.73

EV to Capital Employed

-13.61

EV to Sales

2.71

PEG Ratio

2.42

Dividend Yield

4.07%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

15.61%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-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 not working for Rites

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 3,092.60 cr

in the last six half yearly periods

MOJO 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 periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio