RITES Ltd (NSE: RITES),Railway PSU Stocks to Buy: Shares of Navratna PSU RITES Ltd (NSE: RITES), working under the Ministry of Railways, witnessed a spectacular rise on Tuesday (February 6).
On the previous day, The stock jumped more than 12 percent intraday and reached a record high. It is expected that the company will receive more export orders.
The company has an order backlog of about Rs 5500 crore and is working on the strategy of one order every day.
On the basis of strong outlook, brokerage house is bullish on RITES and has advised to buy. In the last one year, this railway PSU share has increased by more than 130.32 percent.
Railway PSU Stock: Will Touch ₹785?
The Brokerage has maintained a buy advisory on RITES. Also, the target per share has been increased by 21 percent to Rs 785.
The stock closed at Rs 701 on 2 February 2024. In this way, the stock may rise further by more than 12 percent. In the last year, the share has grown by more than 130.32 percent.
This means that the value of 1 lakh has changed to 2.25 lakh over one year.
The stock has risen by more than 66.19% in 6 months and by more than 49.82 percent in the last 1 month. On February 5, 2024, RITES made a new intraday high.
Rites: What Is The Opinion Of Brokerage
The brokerage house says that RITES has increased its FY24 estimates considering the execution of 9 months of the current financial year.
The company may get 4-5 additional export orders in the coming days. Rights may surprise with its inflow.
Apart from railways, the company is also expanding into other verticals. In the bear case, even if the company gets export orders at low margins, the net profit can be 5 percent CAGR.
The brokerage says that after a gap of four years, it has received an export order on Wright. There is an order of Rs 300 crore from Mozambique.
Orders worth Rs 850 crore can be received from Zimbabwe and Rs 830 crore from Bangladesh.
The company has received orders through tender route. Let us inform you that the company has a backlog of orders of 5500 crores of rupees.
The company is on the strategy of getting one order every day.
About RITES LTD
RITES Limited Indian consulting and engineering firm. The company offers a wide range of services, from concept to commissioning transportation technology and infrastructure.
This company operates under four divisions, Consultancy services, Leasing and export of rolling inventories, and Turnkey Construction Projects.
Areas of operation include Railways, Metros and Airports & Land Ports. Other areas include Institutional Buildings as well as Renewable Energy.
Among its subsidiaries are RITES Limited, REMC Limited, and REMC Limited.
Fundamental Analysis of RITES LTD
| Market Cap | ₹ 18,407 Cr. |
| Current Price | ₹ 762 |
| 52-wk High | ₹ 788 |
| 52-wk Low | ₹ 311 |
| Stock P/E | 39.69 |
| Book Value | ₹ 107 |
| Dividend | 2.71 % |
| ROCE | 29.7 % |
| ROE | 21.3 % |
| Face Value | ₹ 10.0 |
| P/B Value | 7.11 |
| OPM | 26.4 % |
| EPS | ₹ 19.2 |
| Debt | ₹ 4.79 Cr. |
| Debt to Equity | 0.00 |
RITES LTD Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹755 | ₹823 |
| 2025 | ₹825 | ₹835 |
| 2026 | ₹840 | ₹850 |
| 2027 | ₹860 | ₹900 |
| 2028 | ₹912 | ₹935 |
| 2029 | ₹940 | ₹967 |
| 2030 | ₹1000 | ₹1132 |
RITES LTD Shareholding Pattern
| Promoters Holding | |
| Dec 2022 | 72.20% |
| Mar 2023 | 72.20% |
| June 2023 | 72.20% |
| Sept 2023 | 72.20% |
| Dec 2023 | 72.20% |
| FII Holding | |
| Dec 2022 | 2.61% |
| Mar 2023 | 3.37% |
| June 2023 | 3.44% |
| Sept 2023 | 3.98% |
| Dec 2023 | 3.22% |
| DII Holding | |
| Dec 2022 | 15.78% |
| Mar 2023 | 15.89% |
| June 2023 | 15.25% |
| Sept 2023 | 12.72% |
| Dec 2023 | 12.27% |
| Public Holding | |
| Dec 2022 | 9.42% |
| Mar 2023 | 8.53% |
| June 2023 | 9.11% |
| Sept 2023 | 11.10% |
| Dec 2023 | 12.31% |
RITES LTD Share: Last 5 Years’ Financial Condition
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 2047 Cr |
| 2020 | ₹ 2474 Cr |
| 2021 | ₹ 1905 Cr |
| 2022 | ₹ 2662 Cr |
| 2023 | ₹ 2,496 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 490 Cr |
| 2020 | ₹ 633 Cr |
| 2021 | ₹ 444 Cr |
| 2022 | ₹ 539 Cr |
| 2023 | ₹497 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.02 |
| 2020 | 0.01 |
| 2021 | 0.01 |
| 2022 | 0.01 |
| 2023 | 0 |
Last 10 Years’ Profit Growth:
| 10 Years: | – |
| 5 Years: | 10% |
| 3 Years: | -4% |
| Current Year: | -16% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | – |
| 5 Years: | 21% |
| 3 Years: | 20% |
| Last Year: | 21% |
Sales Growth Over 10 Years:
| 10 Years: | – |
| 5 Years: | 12% |
| 3 Years: | 2% |
| Current Year: | -8% |
Conclusion
This article is a complete guide about Rites Ltd Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
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