RITES Q2 Results Review - Exports Segment To Improve: IDBI Capital

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..IDBI Capital Report.RITES Ltd.'s Q2 FY25 profit after tax was 19% below consensus estimates. Ebitda margin declined to 19.6% from 21.8% QoQ, with margins impacted by a slowdown in execution during the monsoon and a dip in quality assurance segment margins due to increased competition. Following the results, we have retained our "Hold rating on the stock with a target price of Rs 326. We will turn bullish on the stock once margins in Exports and Consultancy stabilize. As RITES highlighted, the consultancy segment is still seeing an increase in the contribution from non-IR projects within quality assurance. The company is working to strengthen its International quality assurance segment and is venturing into countries like the UAE, Saudi Arabia, Oman, and Qatar for opportunities. The order book, at Rs 66 billion, is equivalent to 2.5 times FY25E revenue, with competitive orders now accounting for 63% of the total order book. The key stock catalysts are order inflow and the stabilization of consultancy margins..Click on the attachment to read the full report:.M&M, Bajaj Electricals, Apollo Hospital, Max Healthcare, Indian Hotel, NCC & More Q2 Review: HDFC Securities.DISCLAIMERThis 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.

RITES Q2 Results Review - Exports Segment To Improve: IDBI Capital

The key stock catalysts are order inflow and the stabilization of consultancy margins, says the brokerage hence maintains 'Hold' rating.

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RITES Q2 Results Review - Exports Segment To Improve: IDBI Capital

The key stock catalysts are order inflow and the stabilization of consultancy margins, says the brokerage hence maintains 'Hold' rating.

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