Mehabe score: 3 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
RITES is engaged in the business of Export Sales, Consultancy, Inspection Fee, Services for Turnkey Construction Projects.
Main Points
Cash and Cash Equivalent is around 60% of total assets at about 3500 Cr.#
RITES led consortium emerged as the lowest bidder during competitive bidding process by Bangladesh Railways, SOW- Detail Project Review (DPR) and Constrcution Supervision for Rs. 63 crores fee. #Site:RITES
Market Cap:
Rs 6,783 cr
Price:
282.0
Trading pe:
15.6x
Book-value:
112/share
Div yield:
5.67 %
Earning yield:
17.16%
Face-value:
10.0/share
52week high:
292.90
52week low:
229.35
Technical Analysis
Stock trades at 282.0, above its 50dma 252.4. It also trades above its 200dma 251.55. The stock remains bullish on techicals
The 52 week high is at 292.90 and the 52week low is at 229.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is providing a good dividend yield of 5.67%.
– has been maintaining a healthy dividend payout of 50.45%
Weakness
– Earnings include an other income of Rs.179.49 Cr.
Competition
– The industry trades at a mean P/E of 12.2x. Techno Elec.Engg trades at the industry’s max P/E of 19.15x. RITES trades at a P/E of 15.6x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. RITES has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 21.0%. The max 1- month return was given by Reliance Infra.: a return of 81.75 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 636.0 cr compared to Rs 571.0 cr for period ended Mar 2020, a rise of 11.4%
Operating Profits reported at Rs 185.0 cr for period ended Mar 2021 vis-vis 164.0 for period ended Mar 2020 .
Operating Margins expanded 36.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 5.73 compared to Rs 4.26 for previous quarter ended Dec 2020 and Rs 5.56 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1860.0 cr for period ended Mar 2021 vis-vis sales of Rs 2474.0 cr for the period ended Mar 2020, a fall of 33.0%. The 3 year sales cagr stood at 7.5%.
Net Profit reported at Rs 432.0 cr for period ended Mar 2021 vis-vis sales of Rs 616.0 cr for the period ended Mar 2020, falling 42.6%.
Company recorded a Net Profit CAGR of 8.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 24.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 19% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is -32% vis-vis a compounded sales growth of 22% over the last 3 Years. – The compounded profit growth on a TTM basis is -30% vis-vis a compounded profit growth of 30% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.0% vis-vis 1.02% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 10.99% vis-vis 10.54% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is providing a good dividend yield of 5.67%.
– has been maintaining a healthy dividend payout of 50.45% – Earnings include an other income of Rs.179.49 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 252.4 and is trading at 282.0, thus bullish price action wise.
