NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
PL Capital Report
RITES Ltd. shares in focus after PL Capital reiterated a ‘Buy' rating with a target price of Rs 275, citing strong execution-led growth visibility despite near-term margin normalisation.
The brokerage hosted RITES management for an NDR, where management reiterated its confidence in the medium-term growth outlook, supported by a relatively young order book, with around two-thirds of projects (12–18 months old) entering the execution phase over FY27–28.
The company targets an order book of Rs 10,000 crore by FY27-end, with at least 80% of new orders through competitive bidding, and guides for 10–20% revenue growth, while PAT growth is expected to trail initially as Ebitda margins normalize from the historical 27–28% to a sustainable 18–20%, with a minimum 15% PAT margin.
The company also highlighted its record export order book of Rs 2,100 crore, comprising Rs 1,750 crore in rolling stock and Rs 350 crore in consultancy, providing strong execution visibility through projects in Bangladesh, Mozambique, South Africa, Guyana and Nepal.
PL Capital continues to like RITES for its asset-light business model, negative working capital cycle and expected ~19% RoE by FY28E.
The brokerage models a 16% revenue CAGR over FY26–28E and, maintaining our 25x FY28E P/E, retain Buy with a target price of Rs 275, along with an attractive 4–5.0% dividend yield.
Click on the attachment to read the full report:
ALSO READ: Dalmia Bharat Target Price Cut, But HDFC Securities Stays Bullish — Here's Why
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
