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Rites Ltd

NSE: RITES BSE: 541556

200.56

(-1.07%)

Fri, 13 Mar 2026, 04:16 pm

Rites Analysis

dividend

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Pros

  • Dividends paid are well covered by earnings (2.5x coverage).
  • RITES's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.75%).
  • RITES's dividend is above the markets top 25% of dividend payers in India (3.09%).
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Cons

  • Dividend payments have increased, but RITES only paid a dividend in the past 2 years.
  • Whilst dividend payments have been stable, RITES has been paying a dividend for less than 10 years.

health

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Pros

  • RITES is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RITES is profitable, therefore cash runway is not a concern.
  • RITES is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (706.7%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 129.5x debt.
  • RITES's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (7.1% vs 1.3% today).
  • RITES earns more interest than it pays, coverage of interest payments is not a concern.
  • RITES's level of debt (1.3%) compared to net worth is satisfactory (less than 40%).
  • Low level of unsold assets.
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Cons

    management

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    Pros

    • Rajeev's remuneration is lower than average for companies of similar size in India.
    • Rajeev's compensation has been consistent with company performance over the past year, both up more than 20%.
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    Cons

    • The average tenure for the RITES board of directors is less than 3 years, this suggests a new board.
    • The average tenure for the RITES management team is less than 2 years, this suggests a new team.

    misc

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    Pros

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      Cons

      • RITES is not covered by any analysts.

      past

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      Pros

      • RITES's 1-year earnings growth exceeds its 5-year average (41.1% vs 15.3%)
      • RITES's year on year earnings growth rate has been positive over the past 5 years.
      • RITES used its assets more efficiently than the IN Professional Services industry average last year based on Return on Assets.
      • RITES has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
      • RITES has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
      • RITES's earnings growth has exceeded the IN Professional Services industry average in the past year (41.1% vs 4.9%).
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      Cons

        value

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        Pros

        • RITES is good value based on earnings compared to the India market.
        • RITES outperformed the Professional Services industry which returned -30.4% over the past year.
        • RITES outperformed the Market in India which returned -14.8% over the past year.
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        Cons

        • RITES's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
        • RITES's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
        • RITES is overvalued based on assets compared to the IN Professional Services industry average.
        • RITES is overvalued based on earnings compared to the IN Professional Services industry average.
        • NSEI:RITES is up 6.2% underperforming the Professional Services industry which returned 21.5% over the past month.
        • NSEI:RITES is up 6.2% underperforming the market in India which returned 9% over the past month.

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        Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800