Rites

Why is Rites Ltd. falling/rising?

As of 23-Jun, Rites Ltd. is experiencing a decline in its stock price, currently at 209.20, reflecting a drop of -2.01%. This decline is due to recent underperformance, poor long-term growth metrics, and a perception of being overvalued compared to the market and its sector.

As of 23-Jun, Rites Ltd. is experiencing a decline in its stock price, currently at 209.20, which reflects a change of -4.3 or -2.01%. This drop can be attributed to several factors highlighted in the recent performance data. Notably, the stock has underperformed its sector by -0.53% today and has fallen after seven consecutive days of gains, indicating a trend reversal.<BR><BR>The stock's performance over the past week shows a slight decline of -0.38%, while the broader market index, Sensex, fell by -0.79%. Over the past month, however, Rites Ltd. has shown a positive return of +2.57%, outperforming the Sensex's +1.04%. Despite this short-term positivity, the year-to-date performance is concerning, with a decline of -13.71%, which is worse than the Sensex's -10.58%. Over the past year, the stock has significantly underperformed, with a return of -24.02% compared to the Sensex's -6.96%.<BR><BR>Additionally, the stock's moving averages indicate that while it is higher than the 20-day moving average, it is lower than the 5-day, 50-day, 100-day, and 200-day moving averages, suggesting a weakening trend. The stock touched an intraday low of Rs 208.4, down by -2.39%, further emphasizing the downward movement.<BR><BR>Despite some positive aspects, such as a high dividend yield of 3.66% and rising investor participation with a delivery volume increase of 44.32% on June 22, the overall sentiment appears to be negative. The company has shown poor long-term growth, with net sales growing at an annual rate of only 5.38% and operating profit at 1.76% over the last five years. This lack of growth, combined with a high price-to-book value ratio of 3.7, contributes to the perception of the stock being overvalued.<BR><BR>In summary, the combination of recent price declines, poor long-term growth metrics, and underperformance relative to both the market and its sector are key factors contributing to the falling stock price of Rites Ltd.

Which are the latest news on Rites?

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.

Are Rites Ltd. latest results good or bad?

Rites Ltd.'s latest results show strong quarterly growth with a 27.43% increase in net profit and 26.24% rise in revenue compared to the previous quarter. However, year-on-year comparisons reveal a decline in net profit and revenue, raising concerns about the company's long-term growth and margin sustainability.

Rites Ltd.'s latest results present a mixed picture. In Q4 FY26, the company reported a consolidated net profit of ₹129.97 crore, which is a significant increase of 27.43% quarter-on-quarter. Revenue also saw a robust growth of 26.24% QoQ, reaching ₹768.26 crore, marking the highest quarterly revenue in the company's recent history. This indicates strong operational momentum and successful project completions.<BR><BR>However, when looking at year-on-year comparisons, there are concerning trends. The net profit decreased by 2.06% compared to Q4 FY25, and operating margins have compressed sharply from 30.82% to 21.89%, indicating rising cost pressures. Additionally, the full-year FY25 results showed a decline in revenue by 9.60% and a decrease in profit after tax by 15.93%, reflecting ongoing challenges in the business.<BR><BR>Overall, while the quarterly performance shows strength, the annual results raise fundamental questions about the company's growth trajectory and margin sustainability. The combination of strong quarterly growth but persistent annual declines suggests that while there are positive signs, significant challenges remain.

Should I buy, sell or hold Rites Ltd.?

Has Rites Ltd. declared dividend?

Yes, Rites Ltd. has declared a dividend of 19%, with an ex-date of February 10, 2026. Despite recent fluctuations in total returns, the long-term performance shows a positive trend, particularly from dividends.

Rites Ltd. has declared a dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 19%<BR>- Ex-date: 10 Feb 26<BR><BR>Dividend Yield: 2.62%<BR><BR>Total Returns by Period:<BR>In the last 3 months, the price return was -10.63%, the dividend return was 1.61%, resulting in a total return of -9.02%.<BR><BR>In the last 6 months, the price return was -13.55%, the dividend return was 3.12%, leading to a total return of -10.43%.<BR><BR>Over the past year, the price return was -5.72%, with a dividend return of 3.42%, resulting in a total return of -2.3%.<BR><BR>In the last 2 years, the price return was -40.37%, the dividend return was 4.33%, culminating in a total return of -36.04%.<BR><BR>Over the past 3 years, the price return was 34.99%, with a dividend return of 21.92%, resulting in a total return of 56.91%.<BR><BR>In the last 4 years, the price return was 69.13%, the dividend return was 50.36%, leading to a total return of 119.49%.<BR><BR>Over the past 5 years, the price return was 72.6%, with a dividend return of 56.16%, resulting in a total return of 128.76%.<BR><BR>Overall, Rites Ltd. has declared a dividend, and while the recent total returns have shown fluctuations, the long-term performance indicates a positive trend in returns, particularly driven by dividends over the past several years.

When is the next results date for Rites Ltd.?

The next results date for Rites Ltd. is 04 February 2026.

The next results date for Rites Ltd. is scheduled for 04 February 2026.

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!