Axis Securities Places Buy On This PSU Miniratna Stock, Claims 19 % Gains With Attractive Valuation
Axis Securities recommend a BUY rating on the stock of RITS Limited with a Target Price of Rs. 405/ share implying an upside of 19% from the Current Market Price.
RITES- a Miniratna ( Schedule A) CPSE under the Ministry of Railways, is an engineering consultancy company.
The RITES' stock last traded at Rs 340.70/ share on NSE, down 1 .57 % from its previous close. Its 52- week low is Rs 433, respectively.
It has a market capitalisation of Rs 8,187.09 crore. The stock got listed on the stock exchange on 2 July 2018.
Since its listing, it has given 99.66 % positive returns. However, it fell 11.03 % in the past 1 week and 11.62 % in the past 1 month, respectively.
Investment Rationale
RITES has a strong order book of Rs 5950 Cr and is well diversified with high- margin Consultancy contributing ~ 41%, Turnkey projects ~ 49 %, Exports ~ 5 %, and the rest from Leasing.
Furthermore, ~ 80% of the order book is sourced from the GoI and its PSU while the rest are from private parties.
The order book gives revenue visibility for the next 2 years. Increased push on Infra development
Valuations
Axis Securities stands at a CAGR ofs. We value the company at 15x FY24 EPS of Rs.27 the company FYs
Disclaimer
The stock has been picked from the brokerage report of Axis Securities.
Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article.
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By Shubham Kumar Goodreturns source: goodreturns.in Dailyhunt