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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rites Ltd

About the Company - Rites Ltd

Rites Ltd. is a Public Limited Listed company incorporated on 26/04/1974 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1974GOI007227 and registration number is 007227. Currently Company is involved in the business activities of Architectural and engineering activities and related technical consultancy. Company’s Total Operating Revenue is Rs. 2575.16 Cr. and Equity Capital is Rs. 240.30 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Project Consultancy/TurnkeyScope Minar, Delhi Delhi 110092cs@rites.com
https://www.rites.com
Management
NamePosition Held
Mr. Rahul MithalChairman & M.D & CEO
Dr. Deepak TripathiDirector - Technical
Mr. Arun Kumar SinghDirector - Projects
Mr. Krishna Gopal AgarwalDirector - Finance
Mr. Laxman Tammanna TapashiIndependent Director
Dr. Dineshananda GoswamIndependent Director
Mr. Likha ToguIndependent Director
Dott. Godawari MishraGovernment Nominee Director
Mr. R K ManglaGovernment Nominee Director
Mr. Sandeep JainGovernment Nominee Director

Rites Ltd. Share Price Update

Share PriceValue
Today₹709.90
Previous Day₹698.60

Basic Stock Data of Rites Ltd

Market Cap 18,352 Cr.
Current Price 764
High / Low821/323
Stock P/E39.8
Book Value 107
Dividend Yield2.67 %
ROCE29.7 %
ROE21.3 %
Face Value 10.0

Data Source: screener.in

Competitors of Rites Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Reliance Industrial Infrastructure Ltd 2,192 Cr. 1,4521,605/723204 2650.23 %2.49 %2.32 % 10.0
Power Mech Projects Ltd 8,144 Cr. 5,1525,550/2,00534.2 8650.04 %22.2 %17.9 % 10.0
Perfect Infraengineers Ltd 76.3 Cr. 53.053.0/14.350.5 14.80.00 %1.31 %2.85 % 10.0
Zodiac Energy Ltd 457 Cr. 312340/85.066.6 26.20.00 %11.2 %8.90 % 10.0
Pansari Developers Ltd 184 Cr. 106152/70.243.8 70.80.00 %1.81 %1.60 % 10.0
Industry Average145.46 Cr95.479.82248.360.05%7.8%6.71%10

Rites Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales454629355766775766605659677687544582683
Expenses322451258539580562426478484496383445514
Operating Profit13317897226195204179181193191161138169
OPM %29%28%27%30%25%27%30%27%29%28%30%24%25%
Other Income26202323162332252719182819
Interest2112321122112
Depreciation13131314152415171917161415
Profit before tax144184106234194201195188199191163150171
Tax %27%23%26%26%26%29%26%26%26%27%26%27%25%
Net Profit10514278174144142145140147139120110129
EPS in Rs4.265.733.007.035.775.695.725.515.835.494.494.215.00

Rites Ltd Quarterly Chart

Rites Ltd Profit & Loss

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,0961,0131,2181,3511,4972,0472,4741,9052,6622,6282,491
Expenses8166648711,0051,0711,4691,8111,3531,9331,8691,807
Operating Profit280348347347427578663552729759683
OPM %26%34%29%26%28%28%27%29%27%29%27%
Other Income1271472082101542002681018410392
Interest22114251010913217
Depreciation2026373836384752666765
Profit before tax385468518505519730874593735774703
Tax %32%33%34%33%31%33%28%25%27%26%
Net Profit261312340337357490633444539571516
EPS in Rs20.8424.9827.0913.1413.7018.7824.6417.9921.4922.5620.02
Dividend Payout %20%20%40%46%32%54%65%72%79%91%

Rites Ltd Profit & Loss Yearly Chart

Rites Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:12%
3 Years:2%
TTM:-8%
Compounded Profit Growth
10 Years:%
5 Years:10%
3 Years:-4%
TTM:-16%
Stock Price CAGR
10 Years:%
5 Years:34%
3 Years:45%
1 Year:132%
Return on Equity
10 Years:%
5 Years:21%
3 Years:20%
Last Year:21%

Rites Ltd Balance Sheet

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital100100100200200200250240240240240
Reserves1,3251,5761,7071,8382,0142,2222,3832,1522,2482,3632,341
Borrowings0017383554847372855
Other Liabilities2,2111,9292,5312,6782,9012,9563,2623,4083,3263,3813,177
Total Liabilities3,6363,6054,5114,7995,1705,4265,9435,8375,8425,9915,764
Fixed Assets198212476406402478590584560552542
CWIP20263452441558101130
Investments228226220328133141261289205130131
Other Assets3,1903,1413,7814,0604,6334,8035,0884,9485,0205,2084,960
Total Assets3,6363,6054,5114,7995,1705,4265,9435,8375,8425,9915,764

Rites Ltd Reserves and Borrowings Chart

Rites Ltd Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -89463555410164317516310560
Cash from Investing Activity 291-520-56-4541395019462-12
Cash from Financing Activity -3839-215-217-279-419-708-376-308
Net Cash Flow165-18284-26124-522-5239

Rites Ltd Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days108137161125114109124112101126
Inventory Days273222302208196
Days Payable165408184572144105589
Cash Conversion Cycle-30-239161125-47-161111277-367
Working Capital Days-508-438-420-449-454-297-236-333-233-219
ROCE %30%28%21%24%30%33%23%29%30%

Rites Ltd Financial Efficiency Indicators Chart

Rites Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters72.20%72.20%72.20%72.20%72.20%72.20%72.20%72.20%72.20%72.20%72.20%72.20%
FIIs1.00%1.01%1.11%1.30%1.45%1.48%2.35%2.61%3.37%3.44%3.98%3.22%
DIIs15.80%16.25%16.53%16.70%16.89%17.26%17.58%15.78%15.89%15.25%12.72%12.27%
Public10.99%10.54%10.16%9.80%9.46%9.06%7.89%9.42%8.53%9.11%11.10%12.31%
No. of Shareholders1,11,7471,07,6551,00,83797,5391,02,2381,01,76195,2361,11,6931,11,7011,23,0741,45,0941,62,986

Rites Ltd Shareholding Pattern Chart

No. of Rites Ltd Shareholders

Rites Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Balanced Advantage Fund - Regular Plan8000000.0537.6
SBI PSU Fund6950003.5332.67
Aditya Birla Sun Life PSU Equity Fund4708211.4922.13
Axis Value Fund933801.144.39
Motilal Oswal Nifty Smallcap 250 Index Fund261310.241.23
SBI Nifty Smallcap 250 Index Fund204110.240.96
Axis Retirement Savings Fund - Dynamic Plan179850.280.85
ICICI Prudential Nifty Smallcap 250 Index Fund107760.240.51
HDFC NIFTY Smallcap 250 ETF55140.240.26
HDFC Nifty Smallcap 250 Index Fund45170.240.21

Rites Ltd ROCE Trend

Rites Ltd EPS Trend

Rites Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)23.7621.4917.5424.6423.48
Diluted EPS (Rs.)23.7621.4917.5424.6423.48
Cash EPS (Rs.)26.5025.1120.6026.9126.00
Book Value[Excl.RevalReserv]/Share (Rs.)113.16107.97103.21108.59124.69
Book Value[Incl.RevalReserv]/Share (Rs.)113.16107.97103.21108.59124.69
Revenue From Operations / Share (Rs.)109.37110.7777.3898.98102.37
PBDIT / Share (Rs.)35.2333.5927.0236.8438.38
PBIT / Share (Rs.)32.4630.8624.8634.9436.47
PBT / Share (Rs.)32.1730.5624.6134.6736.09
Net Profit / Share (Rs.)23.7222.3818.4425.0224.08
NP After MI And SOA / Share (Rs.)22.5621.4917.9924.6423.48
PBDIT Margin (%)32.2130.3234.9237.2137.49
PBIT Margin (%)29.6727.8632.1335.3035.61
PBT Margin (%)29.4027.5831.8035.0235.25
Net Profit Margin (%)21.6820.2023.8325.2823.51
NP After MI And SOA Margin (%)20.6219.3923.2524.8922.93
Return on Networth / Equity (%)20.8120.7418.0723.3919.38
Return on Capital Employeed (%)25.8426.3921.8129.0326.80
Return On Assets (%)9.078.867.4110.438.64
Long Term Debt / Equity (X)0.000.010.010.010.01
Total Debt / Equity (X)0.000.010.010.010.01
Asset Turnover Ratio (%)0.430.450.310.420.37
Current Ratio (X)1.641.551.551.731.68
Quick Ratio (X)1.631.511.461.731.64
Dividend Payout Ratio (NP) (%)86.4481.4384.7153.5645.79
Dividend Payout Ratio (CP) (%)76.9772.2575.6349.7442.33
Earning Retention Ratio (%)13.5618.5715.2946.4454.21
Cash Earning Retention Ratio (%)23.0327.7524.3750.2657.67
Interest Coverage Ratio (X)120.27111.34108.05133.08102.77
Interest Coverage Ratio (Post Tax) (X)81.9775.1974.7391.4065.46
Enterprise Value (Cr.)5189.073146.362532.472632.001781.07
EV / Net Operating Revenue (X)1.971.181.361.060.86
EV / EBITDA (X)6.133.903.902.862.32
MarketCap / Net Operating Revenue (X)3.242.373.112.482.53
Retention Ratios (%)13.5518.5615.2846.4354.20
Price / BV (X)3.272.542.422.342.14
Price / Net Operating Revenue (X)3.242.373.112.482.53
EarningsYield0.060.080.070.100.09

Rites Ltd Profitability Ratios (%)

Rites Ltd Liquidity Ratios

Rites Ltd Liquidity Ratios (%)

Rites Ltd Interest Coverage Ratios (X)

Rites Ltd Valuation Ratios

Fair Value / Intrinsic Value of Rites Ltd

Fair Value: ₹931.30

The stock is undervalued by 21.90% compared to the current price ₹764

*Investments are subject to market risks

Strength and Weakness of Rites Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 24.80%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -358.70, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -36.80, which is a positive sign.
  4. The company has higher reserves (2,015.36 cr) compared to borrowings (43.73 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (1.45 cr) and profit (618.55 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 31.92 and average Dividend Yield of 32.11%.

Should I Buy Rites Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Rites Ltd:
    1. Net Profit Margin: 21.68% (Higher values are generally favorable)
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 25.84% (Industry Average ROCE: 7.8%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 81.97 (Higher values, preferably > 2, are recommended)
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.63 (Higher values, preferably > 1, are recommended)
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 39.5 (Industry average Stock P/E: 77.36)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.00 (Lower values, preferably < 1, are preferred)
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Rites Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE