#RITES : Undervalued Stock?

Rail India Technical and Economic Service Limited, abbreviated as RITES Ltd, is a wholly owned subsidiary of the Indian Railways, Ministry of Railways, Government of India. It is an engineering consultancy corporation, specialising in the field of transport infrastructure.

Overview

~ Annual revenue growth : 39.92%

~ Company with low debt

~ The firm has a solid track record of dividend declarations for the past 5 years . Dividend percentage currently at 45%


~ Higher promoter holding percentage : 72.2%

~ Rites has begun to receive a number of consulting projects in the road segment, metro connectivity segment, and other segments as a result of the allocations made in the 2022–2023 budget.

~ There is a recent hype for railway stocks which stems from the expectation of a budget announcement related to the sector. According to a report, the budget for 2023–2024 is anticipated to include announcements around 300–400 Vande Bharat trains as part of the Indian Railways' aim to update its rolling stock. The report also stated that it is anticipated that roughly 100 trains will be produced in 2023–2024.

Risk factor : The dividend percentage is not stable. At least, not yet. Although earnings have been increasing at a respectable rate, the majority of the company's cash flow over the past year was used to pay dividends.
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RITES Stock Overview