RITES provides consultancy & engineering services to Indian Railways. Apart from catering to the railways, the company also provides multi sectoral consultancy services to other transport modes like roads & highways, posts & inland waterways, airport and urban transport like metros which de-risks in the event of slowdown in any one sector .
It has the ability to collaborate and work jointly through alliances, joint ventures, subsidiaries and consortium arrangements. This enables them to enhance the quality of services and to develop technical expertise and domain knowledge.
Taking into consideration, the company's Large order book with strong and diversified clientele base (increased by 35.8% CAGR to Rs48,18.6cr in FY18), Consistently paying dividend , healthy financial performance, debt free operations & limited competition, issue seems to be attractively priced.
Moreover, on the upper price band of Rs 185 with EPS of FY17, P/E works out at 10.23x. Therefore We recommend to SUBSCRIBE the IPO .