SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : Rites Ltd

BSE: 541556 NSE: RITES ISIN: INE320J01015
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering Consultancy

Snapshot

Q.1 Which industry/sub-sector does Rites Ltd belong to?
Rites Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering Consultancy segment.
Q.2 Is Rites Ltd a good quality company?
Rites Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Rites Ltd undervalued or overvalued?
Rites Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Rites Ltd a good buy now?
Rites Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Rites Ltd?
Rites Ltd revenue growth is -9.6% for FY-2025 , which is below its 5 year CAGR of -2.2% , indicating slower growth.
Q.2 Gross Profit margin of Rites Ltd?
Rites Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.8% for FY-2025 , which is below its 5 year median of 27.4% , indicating decreasing margins.
Q.3 Operating Profit Margin of Rites Ltd?
Rites Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.22% for FY-2025 , which is below its 5 year median of 27.19% indicating decreasing margins.
Q.4 Net Profit Margin of Rites Ltd?
Rites Ltd Net Profit Margin is 19.1% for FY-2025 , is below with its 5 year median of 20.23%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 23.8 27.4
Operating Profit Margin 23.22 27.19
Net Profit Margin 19.1 20.23
Q.5 Return on Asset of Rites Ltd?
Rites Ltd Return on Asset is 7.22%, which is below its 5 year historical median of 8.56%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Rites Ltd?
Rites Ltd Return on equity is 16.14% for FY-2025 , which is below its historical median of 19%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Rites Ltd?
Rites Ltd Return on capital employed is 21.75% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Rites Ltd?
Rites Ltd Cash conversion cycle is 59 days, below its historical median of 59 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.44 0.49
ROE 16.14 19
ROCE 21.75 25.9
Cash Conversion Cycle 59 days 59 days
Q.9 Debt to Equity ratio of Rites Ltd?
Rites Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.12 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Rites Ltd?
Rites Ltd Debt to cash flow from operations is 0 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rites Ltd?
Promoters hold 72.20% of the Rites Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Rites Ltd vs industry peers?
Rites Ltd revenue CAGR is -2.17% , compared to the industry median CAGR of 0.00% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,217.8 52.7
Gross Profit 527.9 6.5
Operating Profit 515 6.8
Net Profit 424 5.1
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.44 0.8
ROE 16.14 18.75
ROCE 21.75 23.42
Cash Conversion Cycle (days) 59.48 100

Valuation & price assessment

Q.1 Stock return of Rites Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 11.11% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 11.1% 6% -8.1%
Q.3 Valuation ratios of Rites Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 23.86 12.98 25.00
Price to Book 3.59 2.51 2.82
Price to Sales 4.35 2.85 3.08
EV to EBITDA 10.04 4.02 13.40

Check more companies

1. NBCC (India)
2. Central Mine Planning & Design Inst
3. Rites
4. Likhami Consulting
5. Mold-Tek Tech
6. Monarch Surveyors
7. HVAX Technologies
8. Winsol Engineers
9. Telge Projects
10. Dhruv Consultancy Se
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×