I'm sure this Railway stock can be best stock for your PortfolioHello Guy's, i hope you all will be doing good in your life and in your Trading as well. Today i have brought stock from one of the top performing sector in recent time, which is Railways. All Railways stocks like RVNL/IRFC/IRCTC etc, has given multibagger returns in just very short of time, but if i talk about RITES, still has not participated much in recent Rallies. So i am expecting an ongoing momentum can be continue in this stock in coming day's. Company has reduced debt. Company is almost debt free. Company has been maintaining a healthy dividend payout of 80.8%. All this parameters are positive for this PSU stock.
Price is above 200-DEMA
Stock is forming Higher highs and Higher lows Pattern on daily timeframe
Stock has given breakout of earlier Highs and sitting at all time highs
Highest Volumes seen on daily timeframes, which is 30.504 Million, this is huge since inception.
About Company:- Established in 1974, RITES Limited is a public sector enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The company is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).
KEY POINTS:-
Services
The major business engagements of the company are consultants, engineers, and project managers in railways, highways, airports, ports, ropeways, urban transport, and inland waterways in India and abroad. The company also provides services of third-party inspection, quality assurance, construction supervision & project management, operations & maintenance, leasing, export of rolling stock and modernization of railway workshop projects, doubling, and electrification on a turnkey basis.
Revenue Split
Consultancy Services: 41% in FY22 vs 55% in FY21 vs 68% in FY18
Leasing: 5% in FY22 vs 6% in FY21 vs 6% in FY18
Turnkey Projects: 6% in FY22 vs 33% in FY21 vs 10% in FY18
Export Sale: 36.28% in FY22 vs 5% in FY21 vs 15% in FY18
Power Generation: 0.8% in FY22 vs 1% in FY21 vs 1% in FY18.
Geographical Split
The company has undertaken projects in over 55 countries across Asia, Africa, Latin America, South America, and the Middle East region.
India (domestic): 90% in FY21 vs 79% in FY18
Africa (exports): 7% in FY21 vs 6% in FY18
Asia (exports): 3% in FY21 vs 15% in FY18.
Clientele
IIM-Rohtak, JNU, Delhi University, Central University of Karnataka, AIIMS, BPCL, SAIL, NTPC, SCCL, CONCOR, Visakhapatnam Port Trust (VPT), Paradip Port Trust (PPT), Subarnarekha Port, Tata Steel, L&T, GMR, Dilip Buildcon among others.
Order Book
The company had a total order book worth 6435 crores as of September 2021. Turnkey order book does not include approx 4000 crores of new Railway Line projects secured in Q2FY22. The contributions of the business segments to the order book (Q2FY22):
Consultancy: 39%
Turnkey Solutions: 43%
Lease: 2%
Exports: 15%
Market Cap
₹ 16,455 Cr.
Current Price
₹ 685
High / Low
₹ 694 / 311
Stock P/E
34.2
Book Value
₹ 107
Dividend Yield
2.99 %
ROCE
29.7 %
ROE
21.3 %
Face Value
₹ 10.0
Industry PE
40.5
Debt
₹ 4.79 Cr.
EPS
₹ 20.0
Promoter holding
72.2 %
Intrinsic Value
₹ 494
Pledged percentage
0.00 %
EVEBITDA
17.0
Change in Prom Hold
0.00 %
Profit Var 5Yrs
9.60 %
Sales growth 5Years
11.9 %
Return over 5years
29.6 %
Debt to equity
0.00
Net profit
₹ 516 Cr.
ROE 5Yr
20.8 %
Profit growth
-11.8 %
Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades.
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Thankyou.
