Rites Ltd. share price target

we change our rating from BUY to HOLD. We value the company at 12.5x FY24E EPS to arrive at a target price of Rs 315 /share (Rs 295/share earlier), implying an upside of only 5% from the CMP.

We roll over our estimate to FY24 and retain a BUY rating on the stock, valuing the company at 11.5x FY24E EPS to arrive at a target price of Rs 275/share (Rs 305/share earlier), implying an upside of 10% from the CMP.

We retain a BUY rating on the stock with a target price of Rs 305 (Rs 330 earlier), implying an upside of 15% from the CMP.

Order book provided visibility: H1FY22 Order book is at Rs64bn (equals 3x TTM Revenue) comprising of Consultancy /Exports/ Lease/ Turnkey/ REMC at Rs2.5bn /Rs10bn/ Rs1bn/ Rs28bn/ Rs1bn. New opportunity is expected from metro consultancy order and 2-3 international orders of USD100mn each. Segmental composition: With Exports back on track, RITE is aiming for Rs7-7.5bn revenue in FY22E. Consultancy segment is growing and RITE expects revenue increase at 10% pa over the next 3-4 years. For Turnkey segment, company expects revenue to improve on QoQ and stabilize in Q4FY22. Going forward, company is targeting to...

We retain a BUY rating on the stock with a target price of Rs 330, implying an upside of 12% from CMP.

we expect the company to deliver Revenues/EBITDA/APAT growth of 26%/23%/21% CAGR respectively over FY21-23E.

Guidance on segmental revenue: For FY22E, RITE expects export revenue of Rs9bn which will be scattered over the next three quarters. Consultancy segment is growing and RITE expected revenue increase of 10% pa over the next 3-4 years. QA has reached Pre Covid level in Q2FY22. Turnkey segment revenue could decline in FY22E...

We recommend a BUY with TP of Rs. 315/share.