RITES LIMITED Valuation

RITES · Construction · Current price ₹212.46

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DocStoX fair value
₹164
low confidence
Current price
₹212
Upside
-22.9%
P/E ratio
24.9x
P/B ratio
4.0x
Verdict
Expensive
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Is RITES LIMITED undervalued?

DocStoX estimates the fair value of RITES LIMITED at ₹164 per share, versus the current market price of ₹212. That puts the stock about -22.9% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 4 independent methods: Residual income (₹66), Relative P/E (₹298), Graham floor (₹104), Analyst target (₹285). 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 ₹66 (bear) to ₹164 (base) to ₹298 (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 24.9x and a P/B of 4.0x, with a dividend yield of 0.6%. 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.