The IIFL Securities Report: Buy Rites - May 21

On May 21st, IIFL Securities released a buy recommendation for Rites, a leading engineering and construction company in India. The current market price of Rites stands at Rs 740 per share. IIFL Securities has set a target price of Rs 759, representing a potential upside of 2.5%. The recommendation is based on the company's strong order book, robust financial performance, and favorable industry outlook.

About Rites:

Rail India Technical and Economic Service Limited (RITES) is an engineering consultancy company providing services to the Indian Railways, other government organisations and private sector companies in India and abroad. The company was incorporated in 1974 and is headquartered in New Delhi, India. RITES has a team of experienced engineers, planners, economists, financial analysts and other professionals who provide a wide range of services including project engineering, planning and design, project management, operations and maintenance, feasibility studies, due diligence, financial analysis and advisory services. RITES has been involved in several major projects in India, including the Delhi Metro, Konkan Railway, Mumbai Elevated Corridor and the Dedicated Freight Corridor.

52 Week Price Trend:

RITES (Rail India Technical and Economic Services Limited) has seen significant fluctuations in its share price over the past 52 weeks. Its current market price (CMP) of Rs. 740.5 is within this range, with a 52-week high of Rs. 821.3 and a 52-week low of Rs. 323. This wide range indicates that the stock has experienced both strong bullish and bearish trends in the recent past. Investors should carefully consider the company's fundamentals, market conditions, and potential risks before making investment decisions.

Stratzy's MOST Analysis:

RITES has received an AA rating from Stratzy's MOST framework, indicating medium fundamental risks. This assessment is based on the company's performance in four key areas: Management, Outlook, Safety, and Trend. The AA rating suggests that RITES has a strong management team, a positive outlook, a safe operating environment, and a favorable trend in its business. This overall rating indicates that RITES is a company with solid financial standing and a strong track record of success.

Company's Fundamentals:

RITES (formerly Rail India Technical and Economic Service) is a leading engineering consultancy company in India, listed on the National Stock Exchange (NSE). The company's stock price-to-earnings (PE) ratio is 40.52, indicating that its stock price is 40.52 times its earnings per share. The price-to-book (PB) ratio of 7.24 suggests that the market value of the company's shares is 7.24 times its book value. RITES offers a dividend yield of 2.64%, meaning that investors receive an annual dividend of 2.64% of the current share price. These metrics provide insights into the company's valuation, profitability, and income distribution to shareholders.

Fundamental and Technical information provided in this blog were last updated on 21 May, 2024

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