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RITES

NSEI:RITES
Snowflake Description

Flawless balance sheet with outstanding track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RITES
NSEI
₹80B
Market Cap
  1. Home
  2. IN
  3. Commercial Services
Company description

RITES Limited, together with its subsidiaries, provides consultancy services in the fields of transport, infrastructure, and related technologies in India and internationally. The last earnings update was 14 days ago. More info.


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RITES Share Price and Events
7 Day Returns
0.3%
NSEI:RITES
1.6%
IN Professional Services
-0.6%
IN Market
1 Year Returns
87.9%
NSEI:RITES
10.2%
IN Professional Services
11.1%
IN Market
RITES Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RITES (RITES) 0.3% 1.9% 8.1% 87.9% - -
IN Professional Services 1.6% 0.9% 10.9% 10.2% 55.4% -52.6%
IN Market -0.6% -0.5% 3% 11.1% 18% 25.7%
1 Year Return vs Industry and Market
  • RITES outperformed the Professional Services industry which returned 10.2% over the past year.
  • RITES outperformed the Market in India which returned 11.1% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

RITES Value

 Is RITES undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of RITES to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for RITES.

NSEI:RITES Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in INR ₹ 13.200000
Payout Ratio Company Filings (2019-12-31) 4321.4%
Discount Rate (Cost of Equity) See below 13.8%
Perpetual Growth Rate 10-Year IN Government Bond Rate 6.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:RITES
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 6.5%
Equity Risk Premium S&P Global 7.9%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.84
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.838 (1 + (1- 35%) (0.46%))
0.934
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.48% + (0.934 * 7.85%)
13.81%

Discounted Cash Flow Calculation for NSEI:RITES using Dividend Discount Model Model

The calculations below outline how an intrinsic value for RITES is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

NSEI:RITES Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= ₹13.2 / (13.81% - 6.48%)
₹180
NSEI:RITES Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹180.00
Current discount Discount to share price of ₹318.85
= -1 x (₹318.85 - ₹180.00) / ₹180.00
-77.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of RITES is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for RITES's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RITES's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:RITES PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in INR ₹25.17
NSEI:RITES Share Price ** NSEI (2020-02-20) in INR ₹318.85
India Professional Services Industry PE Ratio Median Figure of 13 Publicly-Listed Professional Services Companies 11.19x
India Market PE Ratio Median Figure of 2,610 Publicly-Listed Companies 13.26x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of RITES.

NSEI:RITES PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:RITES Share Price ÷ EPS (both in INR)

= 318.85 ÷ 25.17

12.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RITES is overvalued based on earnings compared to the IN Professional Services industry average.
  • RITES is good value based on earnings compared to the India market.
Price based on expected Growth
Does RITES's expected growth come at a high price?
Raw Data
NSEI:RITES PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Asia Professional Services Industry PEG Ratio Median Figure of 58 Publicly-Listed Professional Services Companies 1.67x
India Market PEG Ratio Median Figure of 409 Publicly-Listed Companies 1.25x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for RITES, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on RITES's assets?
Raw Data
NSEI:RITES PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in INR ₹106.04
NSEI:RITES Share Price * NSEI (2020-02-20) in INR ₹318.85
India Professional Services Industry PB Ratio Median Figure of 22 Publicly-Listed Professional Services Companies 0.8x
India Market PB Ratio Median Figure of 3,604 Publicly-Listed Companies 0.85x
NSEI:RITES PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:RITES Share Price ÷ Book Value per Share (both in INR)

= 318.85 ÷ 106.04

3.01x

* Primary Listing of RITES.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RITES is overvalued based on assets compared to the IN Professional Services industry average.
X
Value checks
We assess RITES's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. RITES has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RITES Future Performance

 How is RITES expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RITES has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.4%
Expected Professional Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RITES expected to grow at an attractive rate?
  • Unable to compare RITES's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare RITES's earnings growth to the India market average as no estimate data is available.
  • Unable to compare RITES's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:RITES Future Growth Rates Data Sources
Data Point Source Value (per year)
Asia Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
Asia Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 10%
India Market Earnings Growth Rate Market Cap Weighted Average 21.5%
India Market Revenue Growth Rate Market Cap Weighted Average 9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:RITES Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:RITES Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-02-20
NSEI:RITES Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-12-31 26,488 6,195
2019-09-30 25,639 2,590 6,054
2019-06-30 22,606 4,805
2019-03-31 20,553 1,586 4,695
2018-12-31 18,694 4,389
2018-09-30 17,067 1,695 4,017
2018-06-30 15,513 3,617
2018-03-31 15,065 4,100 3,425
2017-03-31 13,655 5,551 3,285

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if RITES is high growth as no earnings estimate data is available.
  • Unable to determine if RITES is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:RITES Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from RITES Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:RITES Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-02-20
NSEI:RITES Past Financials Data
Date (Data in INR Millions) EPS *
2019-12-31 25.17
2019-09-30 24.22
2019-06-30 19.22
2019-03-31 18.78
2018-12-31 16.96
2018-09-30 16.06
2018-06-30 14.47
2018-03-31 13.70
2017-03-31 13.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if RITES will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Check out RITES's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
  2. RITES's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Commercial Services companies here
  3. RITES's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess RITES's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
RITES has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RITES Past Performance

  How has RITES performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare RITES's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • RITES's year on year earnings growth rate has been positive over the past 5 years.
  • RITES's 1-year earnings growth exceeds its 5-year average (41.1% vs 15.3%)
  • RITES's earnings growth has exceeded the IN Professional Services industry average in the past year (41.1% vs 6.1%).
Earnings and Revenue History
RITES's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from RITES Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:RITES Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 26,488.10 6,194.50 5,866.60
2019-09-30 25,639.10 6,054.20 5,846.90
2019-06-30 22,606.20 4,804.90 5,708.90
2019-03-31 20,552.90 4,695.10 5,553.70
2018-12-31 18,694.05 4,389.11 5,487.45
2018-09-30 17,066.95 4,017.09 5,137.58
2018-06-30 15,512.73 3,617.50 5,170.39
2018-03-31 15,064.80 3,424.80 5,125.30
2017-03-31 13,654.70 3,284.80 4,692.20
2016-03-31 10,905.86 2,813.91 3,869.58
2015-03-31 10,253.00 3,029.80 3,706.70
2014-03-31 10,969.50 2,600.50 4,016.90 1.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • RITES has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • 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).
X
Past performance checks
We assess RITES's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
RITES has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RITES Health

 How is RITES's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up RITES's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RITES is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RITES's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of RITES's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 129.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from RITES Company Filings, last reported 1 month ago.

NSEI:RITES Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 27,250.90 366.50 36,014.70
2019-09-30 27,250.90 366.50 36,014.70
2019-06-30 24,937.50 530.90 35,114.70
2019-03-31 24,937.50 530.90 35,114.70
2018-12-31
2018-09-30
2018-06-30 22,703.80 630.50 35,957.40
2018-03-31 22,703.80 630.50 35,957.40
2017-03-31 20,820.20 1,116.90 30,802.20
2016-03-31 18,895.45 1,241.70 26,045.21
2015-03-31 16,441.70 1,196.70 20,622.00
2014-03-31 14,065.40 885.50 21,211.80
  • RITES's level of debt (1.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (7.1% vs 1.3% today).
  • Debt is well covered by operating cash flow (706.7%, greater than 20% of total debt).
  • RITES earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess RITES's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. RITES has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RITES Dividends

 What is RITES's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.14%
Current annual income from RITES dividends.
If you bought ₹2,000 of RITES shares you are expected to receive ₹83 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • RITES's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.59%).
  • RITES's dividend is above the markets top 25% of dividend payers in India (2.55%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:RITES Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
India Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 2.1%
India Market Average Dividend Yield Market Cap Weighted Average of 1402 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:RITES Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2020-02-20
NSEI:RITES Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2020-02-06 13.200 4.242
2019-12-27 12.400 4.012
2019-07-05 10.200 3.988
2019-03-11 7.000 3.345
2018-12-17 5.400 2.752
2018-08-27 4.400 2.112
2018-07-30 4.400 1.970
2018-07-02 5.320 3.225

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, RITES has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but RITES only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of RITES's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess RITES's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can RITES afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RITES has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RITES Management

 What is the CEO of RITES's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rajeev Mehrotra
COMPENSATION ₹7,517,806
AGE 58
CEO Bio

Mr. Rajeev Mehrotra, FICWA has been the Managing Director of RITES Ltd. since September 1, 2011 and serves as its Chief Executive Officer. Mr. Mehrotra served as Director of Finance at RITES Ltd. since August 01, 2019. Mr. Mehrotra served as Director of Finance at RITES Ltd. since October 10, 2012 until September 01, 2013. Mr. Mehrotra has over 25 years of work experience in various areas of finance including resource mobilization from domestic and international financial markets, financial risk management, treasury operations, borrowing and lending operations, financial accounting, taxation, investment of surplus funds, lending policies, accounting policies, corporate financial management information systems and project appraisal. Prior to joining RITES, Mr. Mehrotra worked with PFCL between 1989 and 2007, where he last served as an Additional General Manager. He has also worked with NHPC Limited between 1982 and 1989. He has been Chairman of Tanzania Railway Limited. since November 1, 2010. He has been Chairman and Whole Time Director of RITES Ltd. since October 11, 2012 and October 12, 2007 respectively. Mr. Mehrotra is a Fellow Member of the Institute of Cost and Works Accountants of India, Kolkata. He has received training in financial management of power utilities from the Global Utilities Institute at the University of Samford, Alabama, USA and has also received advanced training in project appraisal and investment analysis from the Harvard Institute of International Development through their programme organized in conjunction with the National Institute of Financial Management, Faridabad. Mr. Mehrotra holds a bachelor’s degree in commerce from the University of Rajasthan.

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

Average tenure of the RITES management team in years:

1
Average Tenure
  • The average tenure for the RITES management team is less than 2 years, this suggests a new team.
Management Team

Rajeev Mehrotra

TITLE
Chairman
COMPENSATION
₹8M
AGE
58

Ashish Srivastava

TITLE
Company Secretary & Compliance Officer
COMPENSATION
₹2M

Gopi Varadarajan

TITLE
Director of Projects & Executive Director
COMPENSATION
₹4M
TENURE
1.4 yrs

Parmod Narang

TITLE
Chief Financial Officer
TENURE
0.5 yrs

A. Poddar

TITLE
Chief Vigilance Officer
TENURE
2.5 yrs

P. Gupta

TITLE
Executive Director of Regional Projects

Y. Sharma

TITLE
Executive Director

Virendra Singh

TITLE
Executive Director of Expotech

Anil Vij

TITLE
Director of Technical & Executive Director
TENURE
0.3 yrs

Piyush Kansal

TITLE
Executive Director of Urban Infra
Board of Directors Tenure

Average tenure and age of the RITES board of directors in years:

1.1
Average Tenure
57.5
Average Age
  • The average tenure for the RITES board of directors is less than 3 years, this suggests a new board.
Board of Directors

Gopi Varadarajan

TITLE
Director of Projects & Executive Director
COMPENSATION
₹4M
TENURE
1.4 yrs

Anil Vij

TITLE
Director of Technical & Executive Director
TENURE
0.3 yrs

B. Nayak

TITLE
Director of Finance & Executive Director
TENURE
0.3 yrs

Anil Goel

TITLE
Additional Independent Director
COMPENSATION
₹650K
AGE
57
TENURE
0.6 yrs

Rajeev Mehrotra

TITLE
Chairman
COMPENSATION
₹8M
AGE
58
TENURE
8.1 yrs

Satish Sareen

TITLE
Additional Independent Director
COMPENSATION
₹650K
AGE
53
TENURE
0.6 yrs

Geethakumari P.S.

TITLE
Non-Executive Independent Director
COMPENSATION
₹500K
TENURE
1.9 yrs

Rajendra Goyal

TITLE
Independent Director
COMPENSATION
₹400K
TENURE
1.9 yrs

Pramod Anand

TITLE
Non-Executive Independent Director
COMPENSATION
₹480K
TENURE
2.4 yrs

Alok Tewari

TITLE
Part Time Government Director
AGE
59
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess RITES's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. RITES has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RITES News

Simply Wall St News

Why Fundamental Investors Might Love RITES Limited (NSE:RITES)

RITES is a company with great financial health as well as a a strong track record of performance. … For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on RITES here. … Take a look at our free research report of analyst consensus for RITES’s outlook.

Simply Wall St -

Are RITES Limited’s (NSE:RITES) High Returns Really That Great?

What is Return On Capital Employed (ROCE)? … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for RITES: 0.21 = ₹5.6b ÷ (₹54b - ₹27b) (Based on the trailing twelve months to March 2019.) Therefore, RITES has an ROCE of 21%. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.

Simply Wall St -

Is RITES Limited's (NSE:RITES) ROE Of 20% Impressive?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for RITES: 20% = ₹4.7b ÷ ₹25b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

How Many RITES Limited (NSE:RITES) Shares Have Insiders Sold, In The Last Year?

So before you buy or sell RITES Limited (NSE:RITES), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … NSEI:RITES Recent Insider Trading, May 24th 2019 If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Simply Wall St -

Why We Like RITES Limited’s (NSE:RITES) 16% Return On Capital Employed

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

What To Know Before Buying RITES Limited (NSE:RITES) For Its Dividend

RITES Limited (NSE:RITES) has started paying a dividend to shareholders. … How I analyze a dividend stock … When researching a dividend stock, I always follow the following screening criteria:

Simply Wall St -

Should We Be Delighted With RITES Limited's (NSE:RITES) ROE Of 16%?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.16 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are Insiders Selling RITES Limited (NSE:RITES) Stock?

Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So we'll take a look at whether insiders have been buying or selling shares in RITES Limited (NSE:RITES). … But logic dictates you should pay some attention to whether insiders are buying or selling shares.

Simply Wall St -

RITES Limited (NSE:RITES) Will Pay ₹4.75 In Dividends

If you are interested in cashing in on RITES Limited's (NSE:RITES) upcoming dividend of ₹4.75 per share, you only have 4 days left to buy the shares before its ex-dividend date, 27 December 2018, in time for dividends payable on the 16 January 2019. … 5 questions I ask before picking a dividend stock? … Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

Simply Wall St -

RITES Limited (NSE:RITES): A Look At Solid Capital Returns

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand RITES’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

RITES Company Info

Description

RITES Limited, together with its subsidiaries, provides consultancy services in the fields of transport, infrastructure, and related technologies in India and internationally. It operates through four segments: Consultancy Services; Turnkey Construction Projects; Export of Rolling Stock, Equipments and Spares; and Leasing of Railway Rolling Stock & Equipments. The company offers consultancy, engineering, and project management services in the areas of railways, highways, airports, ports, ropeways, urban transport, and inland waterways. It is also involved in the third party inspection, quality assurance, construction supervision and project management, operation and maintenance, leasing, and export of rolling stock; and provision of railway workshops modernization services. In addition, the company generates power from wind mills and solar energy plants; manufactures and rehabilitates wagons; and undertakes civil construction works. Further, it provides services in various sectors, such as architecture and planning, bridges and tunnel engineering, environmental/urban engineering, electrical engineering, financial management, geo-technology, industrial engineering, information technology, marine engineering, materials system management, privatization and concession projects, railway electrification, rolling stock design, signal and telecommunication, surveys, and training programs. The company serves governments, public sector undertakings, corporations and industrial establishments, and private enterprises, and other organizations. RITES Limited was founded in 1974 and is based in Gurugram, India.

Details
Name: RITES Limited
RITES
Exchange: NSEI
Founded: 1974
₹80,187,500,000
250,000,000
Website: http://ritesltd.com
Address: RITES Limited
RITES Bhawan,
No. 1, Sector-29,
Gurugram,
Haryana, 122001,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI RITES Equity Shares National Stock Exchange of India IN INR 20. Apr 2009
BSE 541556 Equity Shares Mumbai Stock Exchange IN INR 20. Apr 2009
Number of employees
Current staff
Staff numbers
0
RITES employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/02/20 13:27
End of day share price update: 2020/02/20 00:00
Last estimates confirmation: 2020/02/07
Last earnings filing: 2020/02/06
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.