Time period given by analyst is one year when Rites Ltd. price can reach defined target.
Rites Ltd., incorporated in the year 1974, is a Mid Cap company (having a market cap of Rs 7084.10 Crore) operating in Services sector.
Rites Ltd. key Products/Revenue Segments include Consultancy Income, Turnkey Project, Other Services, Lease Rentals and Sale of Products for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 788.85 Crore, up 109.10 % from last quarter Total Income of Rs 377.26 Crore and up 57.88 % from last year same quarter Total Income of Rs 499.66 Crore. Company reported net profit after tax of Rs 174.40 Crore in latest quarter.
Investment Rationale
With a strong order book position, efficient execution prowess, and a clean balance sheet, the brokerage expects the company’s Revenues/EBITDA/APAT to grow at a CAGR of 25%/21%/20% respectively over FY21-23E. It maintains a BUY on RITES and value the company at 12.5x FY23E EPS with a target price of Rs 330, implying an upside of 12% from CMP.
Promoter/FII Holdings
Promoters held 72.2 per cent stake in the company as of 30-Sep-2021, while FIIs owned 1.11 per cent, DIIs 16.52 per cent.
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