AI Summary
✦ ClarthaRITES is an engineering consultancy company serving railways, highways, airports, ports, ropeways, urban transport, and inland waterways. Consultancy Services drives project studies, design, procurement assistance, project management, and supervision, while Leasing and Export monetize rolling stock and equipment. Turnkey Construction Projects add execution revenue, with Power Generation a smaller segment. A record order book highlighted in the Q1 FY27 earnings call supports future growth, although the HPCL MoU has not yet improved sentiment. Revenue grew 10.0% year-on-year, while profit increased 6.6%, indicating stable margins but slower earnings conversion. ROE is unavailable, and debt-to-equity of 0.24 indicates limited leverage without qualifying RITES as net-cash. At 26.8 times earnings, valuation appears fair against current growth, rather than discounted. The key open question is whether order-book conversion can lift profit growth, given execution timing and exposure to public-sector railway spending.
Price Forecast
Probabilistic Range
Probabilistic lognormal cone using 1Y realized volatility and analyst-target drift when available.
Revenue Forecast
₹ CrEPS Forecast
₹ / shareMulti-factor synthesis of 5 key dimensions
From 2 analysts
Fundamentals
Fundamentals institutional score is 65 using growth durability 64.8.
Valuation
Valuation institutional score is 69 using relative multiple z-scores where peer dispersion is available.
Analyst Consensus
Analyst View institutional score is 83 using mean target upside 22.6%; dispersion penalty 3.2; recommendation breadth from available consensus.
Technical Structure
Technicals institutional score is 92 using EMA-20 continuation within 5% tolerance; VCP range/volume contraction proxy.
Market Sentiment
Recent news flow is balanced or not decisive enough to tilt the tape. Based on 11 recent ticker-linked news items.
Signal Summary
Market intelligence remains Neutral. fundamentals and valuation provide support.
Composite weights: Fundamentals 25%, Valuation 20%, Analyst Consensus 20%, Technical Structure 20%, Market Sentiment 15%.
Key Data Points
Important Note: This is market intelligence, not investment advice. Always conduct your own research and consider your financial goals and risk tolerance.
Valuation Metrics
Trading 6.7% below historical median. Valuation is declining — currently in the strongly undervalued zone (z-score: -0.64). Confidence: 82%.
Live forward EPS implies next-12-month EPS of ₹11.02. Applying the stock's normalized valuation corridor produces a fair range of ₹277.81 to ₹366.86, with base value near ₹309.66 (+36.6% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹11.02
Forward P/E
20.6x
Base Fair Value
₹309.66
Fair Range
₹277.81 - ₹366.86
Upside To Base
+36.6%
Estimate Source
Live forward EPS
Growth Estimate
+8.4%
5Y Average
24.35
Current
26.23
Overvalued
33.29
Undervalued
25.21
5Y Average
17.42
Current
18.77
Overvalued
20.57
Undervalued
13.11
5Y Average
4.12
Current
4.07
Overvalued
4.74
Undervalued
3.50
Peers & Comparison
Sector: Industrials · Theme: Business Support Services
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
INDEGENE LIMITED INDGNBusiness Support Services | +39.7% | 10.5% | 34.2x Undervalued | -20% vs avg | -3.5% |
SIS LIMITED SISBusiness Support Services | +29.7% | 0.9% | 45.3x Fair | +7% vs avg | +19.5% |
KFIN TECHNOLOGIES LIMITED KFINTECHBusiness Support Services | +30.1% | 24.4% | 47.9x Fair | +13% vs avg | -14.5% |
RITES LIMITED trades at a discount (26.2x vs peer avg 42.5x), suggesting potential undervaluation relative to the Business Support Services cohort. Peers include INDEGENE LIMITED, SIS LIMITED, KFIN TECHNOLOGIES LIMITED — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹569 CrDec 2025Latest net profit
₹95 CrDec 2025Latest EPS
₹1.99Dec 2025Net margin
16.2%Dec 2025Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Dec 2025
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Free cash flow
- Cash & equivalents
Results
| Metric | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 659 | 504 | 549 | 653 | 606 | 454 | 510 | 545 | 587 | 456 | 514 | 569 |
| Expenses | 489 | 377 | 439 | 509 | 461 | 376 | 430 | 454 | 425 | 372 | 414 | 462 |
| Operating Profit | 156 | 112 | 99.03 | 132 | 132 | 66.14 | 67.29 | 76.51 | 147 | 70.99 | 85.3 | 92.08 |
| OPM % | 23.62% | 22.3% | 18.03% | 20.18% | 21.7% | 14.58% | 13.18% | 14.05% | 25.07% | 15.58% | 16.6% | 16.18% |
| Other Income | 31.17 | 17.69 | 51.4 | 24.85 | 32.98 | 21.36 | 43.21 | 28.74 | 36.04 | 20.18 | 47.31 | 33.92 |
| Interest | 2.33 | 0.92 | 1.43 | 1.88 | 0.47 | 1.05 | 2.42 | 0.88 | 1.29 | 1.42 | 0.76 | 0.72 |
| Depreciation | 14.8 | 13.95 | 11.7 | 12.59 | 13.19 | 12.12 | 12.63 | 13.66 | 14.53 | 13.2 | 14.74 | 14.62 |
| Profit before tax | 184 | 129 | 149 | 155 | 164 | 86.45 | 108 | 104 | 182 | 89.75 | 132 | 125 |
| Tax % | 25% | 25.72% | 21.75% | 24.53% | 25% | 24.97% | 20.43% | 26.74% | 26.08% | 25.74% | 22.47% | 23.92% |
| Net Profit | 138 | 95.88 | 117 | 117 | 123 | 64.86 | 86 | 76.46 | 134 | 66.65 | 102 | 95.31 |
| EPS in Rs | 5.76 | 3.99 | 2.43 | 4.93 | 2.56 | 1.35 | 1.79 | 1.98 | 2.80 | 1.39 | 2.13 | 1.99 |
All values in Rs. Crore unless otherwise stated. Source: CMIE Prowess, Quarterly Interim Standalone.