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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rites Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:16 pm

Market Cap 16,946 Cr.
Current Price 705
High / Low826/365
Stock P/E37.2
Book Value 109
Dividend Yield2.91 %
ROCE24.8 %
ROE17.5 %
Face Value 10.0
PEG Ratio-7.63

Competitors of Rites Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Perfect Infraengineers Ltd 59.4 Cr. 36.261.4/15.072.4 19.90.00 %1.04 %3.84 % 10.0
Pansari Developers Ltd 183 Cr. 105152/70.235.2 72.60.00 %5.09 %4.20 % 10.0
Zodiac Energy Ltd 912 Cr. 624695/11583.2 32.50.00 %22.5 %26.2 % 10.0
Power Mech Projects Ltd 7,984 Cr. 5,0505,550/3,14132.2 1,1630.04 %23.9 %16.0 % 10.0
Reliance Industrial Infrastructure Ltd 2,021 Cr. 1,3381,605/920198 2850.26 %3.86 %2.48 % 10.0
Industry Average2,231.88 Cr1,430.6484.20314.600.06%11.28%10.54%10.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales629355766775766605659677687544582683643
Expenses451258539580562426478484496383445514467
Operating Profit17897226195204179181193191161138169176
OPM %28%27%30%25%27%30%27%29%28%30%24%25%27%
Other Income20232316233225271918281927
Interest1123211221120
Depreciation13131415241517191716141516
Profit before tax184106234194201195188199191163150171187
Tax %23%26%26%26%29%26%26%26%27%26%27%25%27%
Net Profit14278174144142145140147139120110129137
EPS in Rs5.733.007.035.775.695.725.515.835.494.494.215.005.25

Last Updated: June 9, 2024, 12:10 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:01 am

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,0961,0131,2181,3511,4972,0472,4741,9052,6622,6282,496
Expenses8166648711,0051,0711,4691,8111,3531,9331,8691,837
Operating Profit280348347347427578663552729759659
OPM %26%34%29%26%28%28%27%29%27%29%26%
Other Income1271472082101542002681018410384
Interest22114251010913217
Depreciation2026373836384752666762
Profit before tax385468518505519730874593735774675
Tax %32%33%34%33%31%33%28%25%27%26%
Net Profit261312340337357490633444539571497
EPS in Rs20.8424.9827.0913.1413.7018.7824.6417.9921.4922.5619.19
Dividend Payout %20%20%40%46%32%54%65%72%79%91%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)19.54%8.97%-0.88%5.93%37.25%29.18%-29.86%21.40%5.94%
Change in YoY Net Profit Growth (%)0.00%-10.57%-9.86%6.82%31.32%-8.07%-59.04%51.25%-15.46%

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:28%
3 Years:43%
1 Year:102%
Return on Equity
10 Years:%
5 Years:21%
3 Years:20%
Last Year:21%

Last Updated: April 13, 2024, 9:53 am

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

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

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow280.00348.00174.00264.00372.00530.00616.00515.00701.00754.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters72.20%72.20%72.20%72.20%72.20%72.20%72.20%72.20%72.20%72.20%72.20%72.20%
FIIs1.01%1.11%1.30%1.45%1.48%2.35%2.61%3.37%3.44%3.98%3.22%4.17%
DIIs16.25%16.53%16.70%16.89%17.26%17.58%15.78%15.89%15.25%12.72%12.27%11.09%
Public10.54%10.16%9.80%9.46%9.06%7.89%9.42%8.53%9.11%11.10%12.31%12.53%
No. of Shareholders1,07,6551,00,83797,5391,02,2381,01,76195,2361,11,6931,11,7011,23,0741,45,0941,62,9862,35,296

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Balanced Advantage Fund - Regular Plan800,0000.0537.610,7762024-06-167323.9%
SBI PSU Fund695,0003.5332.6710,7762024-06-166349.52%
Aditya Birla Sun Life PSU Equity Fund470,8211.4922.1310,7762024-06-164269.16%
Axis Value Fund93,3801.144.3910,7762024-06-16766.56%
Motilal Oswal Nifty Smallcap 250 Index Fund26,1310.241.2310,7762024-06-16142.49%
SBI Nifty Smallcap 250 Index Fund20,4110.240.9610,7762024-06-1689.41%
Axis Retirement Savings Fund - Dynamic Plan17,9850.280.8510,7762024-06-1666.9%
ICICI Prudential Nifty Smallcap 250 Index Fund10,7760.240.5110,7762024-06-160%
HDFC NIFTY Smallcap 250 ETF5,5140.240.2610,7762024-06-16-48.83%
HDFC Nifty Smallcap 250 Index Fund4,5170.240.2110,7762024-06-16-58.08%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)18.9523.7621.4917.5424.64
Diluted EPS (Rs.)18.9523.7621.4917.5424.64
Cash EPS (Rs.)22.9026.5025.1120.6026.91
Book Value[Excl.RevalReserv]/Share (Rs.)113.23113.16107.97103.21108.59
Book Value[Incl.RevalReserv]/Share (Rs.)113.23113.16107.97103.21108.59
Revenue From Operations / Share (Rs.)102.07109.37110.7777.3898.98
PBDIT / Share (Rs.)30.3935.2333.5927.0236.84
PBIT / Share (Rs.)27.8632.4630.8624.8634.94
PBT / Share (Rs.)27.6732.1730.5624.6134.67
Net Profit / Share (Rs.)20.3823.7222.3818.4425.02
NP After MI And SOA / Share (Rs.)18.9522.5621.4917.9924.64
PBDIT Margin (%)29.7732.2130.3234.9237.21
PBIT Margin (%)27.2929.6727.8632.1335.30
PBT Margin (%)27.1029.4027.5831.8035.02
Net Profit Margin (%)19.9621.6820.2023.8325.28
NP After MI And SOA Margin (%)18.5620.6219.3923.2524.89
Return on Networth / Equity (%)17.4520.8120.7418.0723.39
Return on Capital Employeed (%)22.8925.8426.3921.8129.03
Return On Assets (%)8.049.078.867.4110.43
Long Term Debt / Equity (X)0.000.000.010.010.01
Total Debt / Equity (X)0.000.000.010.010.01
Asset Turnover Ratio (%)0.420.430.450.310.42
Current Ratio (X)1.651.641.551.551.73
Quick Ratio (X)1.651.631.511.461.73
Dividend Payout Ratio (NP) (%)0.0086.4481.4384.7153.56
Dividend Payout Ratio (CP) (%)0.0076.9772.2575.6349.74
Earning Retention Ratio (%)0.0013.5618.5715.2946.44
Cash Earning Retention Ratio (%)0.0023.0327.7524.3750.26
Interest Coverage Ratio (X)155.04120.27111.34108.05133.08
Interest Coverage Ratio (Post Tax) (X)104.9881.9775.1974.7391.40
Enterprise Value (Cr.)12933.725189.073146.362532.472632.00
EV / Net Operating Revenue (X)5.271.971.181.361.06
EV / EBITDA (X)17.716.133.903.902.86
MarketCap / Net Operating Revenue (X)6.513.242.373.112.48
Retention Ratios (%)0.0013.5518.5615.2846.43
Price / BV (X)6.123.272.542.422.34
Price / Net Operating Revenue (X)6.513.242.373.112.48
EarningsYield0.020.060.080.070.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 730.24

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 3.58% compared to the current price 705

Intrinsic Value: 694.63

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 1.47% compared to the current price ₹705

Last 5 Year EPS CAGR: -4.88%

*Investments are subject to market risks

Strength and Weakness

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 (2,017.91 cr) compared to borrowings (44.00 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (1.45 cr) and profit (616.00 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Rites Ltd:
      1. Net Profit Margin: 19.96%
        • 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: 22.89% (Industry Average ROCE: %)
        • 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. ROE%: 17.45% (Industry Average ROE: %)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 104.98
        • 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.
      5. Quick Ratio: 1.65
        • 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.
      6. ✗ Stock P/E: 37.2 (Industry average Stock P/E: )
        • 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.
      7. Total Debt / Equity: 0.00
        • 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.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company

    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

    FAQ

    What is the latest fair value of Rites Ltd?

    The latest fair value of Rites Ltd is ₹730.24.

    What is the Market Cap of Rites Ltd?

    The Market Cap of Rites Ltd is 16,946 Cr..

    What is the current Stock Price of Rites Ltd as on 20 June 2024?

    The current stock price of Rites Ltd as on 20 June 2024 is ₹705.

    What is the High / Low of Rites Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Rites Ltd stocks is 826/365.

    What is the Stock P/E of Rites Ltd?

    The Stock P/E of Rites Ltd is 37.2.

    What is the Book Value of Rites Ltd?

    The Book Value of Rites Ltd is 109.

    What is the Dividend Yield of Rites Ltd?

    The Dividend Yield of Rites Ltd is 2.91 %.

    What is the ROCE of Rites Ltd?

    The ROCE of Rites Ltd is 24.8 %.

    What is the ROE of Rites Ltd?

    The ROE of Rites Ltd is 17.5 %.

    What is the Face Value of Rites Ltd?

    The Face Value of Rites Ltd is 10.0.

    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