RITES LIMITED Valuation

RITES · Construction · Current price ₹218.09

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DocStoX fair value
₹116
low confidence
Current price
₹218
Upside
-47.0%
P/E ratio
25.5x
P/B ratio
4.0x
Verdict
Avoid
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Is RITES LIMITED undervalued?

DocStoX estimates the fair value of RITES LIMITED at ₹116 per share, versus the current market price of ₹218. That puts the stock about -47.0% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹64), Relative P/E (₹225), Graham floor (₹104). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹64 (bear) to ₹116 (base) to ₹225 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

RITES LIMITED trades at a P/E of 25.5x and a P/B of 4.0x, with a dividend yield of 2.3%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on RITES LIMITED

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.