RITES Limited (RITES) Fair Value & Analysis

Industrials · IN · Market cap ₹105B

A solid business, but screening 30% overvalued on our models.

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

What matters now

• The price sits above even our optimistic bull case (₹189.38). The favourable scenario is already priced in.
• Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
• A fairly wide model range (₹99.48 to ₹189.38) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 23, 2026.

How to read this chart

60‑month range ₹94.67 – ₹374.34 · fair‑value band ₹99.48 – ₹189.38 · the ₹218.15 price screens above the ₹151.90 fair value. Dashed = 300-day average. As of Aug 23, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

RITES Limited (RITES) currently trades at ₹218.15, while our model-based Fair Value estimate is ₹151.90, implying the stock looks roughly 30.4% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, RITES Limited generated revenue of ₹24.6B at a net margin of 17.0%. Revenue grew 8.7% year over year. It earns a return on equity of 16.4%. The stock trades on a trailing P/E of 25.1. Fundamentals as of Aug 23, 2026

Our scenario range runs from ₹99.48 (bear case) to ₹189.38 (bull case); at ₹218.15, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 20% below its 52-week high and 25% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -30% fair-value upside, at -30%, RITES screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Growth Earnings (₹390.80) versus Asset-Based (₹37.38). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

RITES Limited, together with its subsidiaries, provides design, engineering consultancy, and project management services in the field of railways, highways, airports, metros, ports, ropeways, urban transport, inland waterways, and renewable energy.

Full company description

RITES Limited, together with its subsidiaries, provides design, engineering consultancy, and project management services in the field of railways, highways, airports, metros, ports, ropeways, urban transport, inland waterways, and renewable energy. The company operates through five segments: Consultancy Services; Leasing of Railway Rolling Stock & Equipments; Export of Rolling Stock, Equipments and Spares; Turnkey Construction Projects; and Power Generation. It is involved in the engineering design and survey, feasibility studies, detailed design and consultancy, project management consultancy, technical audit, third party inspection, quality assurance, construction supervision, and leasing and export of locomotives and rolling stock; turnkey construction; and maintenance and operational facilities such as smart yards, coaching, and freight maintenance depots. The company also constructs railway workshops, track doubling /tripling/quadruplicating, new/additional railway line, railway electrification, redevelopment of railway stations, institutional buildings, wind, solar and other renewable energy projects on a turnkey basis; civil engineering works; and generates power from windmills and solar energy plants. In addition, it offers services in the field of road/railway tunnels engineering, urban engineering, electrical engineering, information technology, transaction, advisory, procurement, railway electrification, rolling stock design, railway equipment, signaling & telecommunications, surveys, and training programs. The company serves central/state governments, public sector undertakings, large corporations, and private enterprises in India, Asia, Africa, and internationally. RITES Limited was incorporated in 1974 and is based in Gurugram, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

RITES Limited reported revenue of ₹24.2B in FY2025 versus ₹1.9B in FY2021, a compound +90.1%/yr. Reported net income was ₹4.1B in FY2025, compounding +103.8%/yr from FY2021.

RITES screens 30% overvalued. Compare with Larsen & Toubro Limited →

Peer Group

Engineering & Construction · 832 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Engineering & Construction median · lower = cheaper

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 23, 2026).

Explore undervalued stocks

More undervalued Industrials stocks →

Discover undervalued stocks

Pick a strategy and jump into the live analysis with that exact screen applied.

Discover tools

Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.