1:1 Bonus Share & Rs 6,355 Crore Order Book: Civil Construction Company Emerges As Lowest Bidder (L1)For Order Worth Rs 59.13 Crore From UPSCBL
The stock has an ROE of 18 per cent and an ROCE of 25 per cent.
RITES Limited emerges as the lowest bidder (L1) for a contract from the Uttar Pradesh State Bridge Corporation Limited (UPSCBL). The company has been awarded the consultancy services for construction supervision of civil works (CSC) for various bridge and road infrastructure projects across Uttar Pradesh. This 36-month contract, valued at Rs. 59.13 crore (excluding GST), entails overseeing construction, monitoring quality, ensuring safety, and providing technical expertise for the construction of bridges, rail over/under bridges, flyovers, and elevated roads, including their approach roads. This achievement underscores RITES's strong position in the Indian infrastructure sector and its commitment to delivering high-quality consultancy services.
Earlier, the company joined forces with NMDC Limited, India's largest iron ore producer, through a Memorandum of Agreement (MoA). This strategic partnership aims to optimize NMDC's rail connectivity by providing comprehensive Project Management Consultancy services. RITES will offer end-to-end solutions, from initial surveys and feasibility studies to detailed project reports and project management, covering rail connectivity, civil works, and other infrastructure essential for efficient transportation and logistics. This collaboration leverages RITES' expertise in railway engineering and project management to support NMDC in executing critical projects and enhancing operational efficiency.
Furthermore, the shares of the company ex-traded 1:1 bonus equity share as of Friday, September 20, 2024.
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Established in 1974, RITES Limited is a leading public sector player in India's transport consultancy and engineering, offering diversified services from locomotive and train manufacturing to consultancy, exports, leasing and turnkey projects across railways, metros, airports, ports, highways, ropeways and urban infrastructure. As India's export arm for rolling stock (except Thailand, Malaysia, and Indonesia), it boasts expertise in various gauges and caters to diverse transportation needs.
RITES demonstrated its resilience by maintaining a robust order book. The company successfully secured 84 orders worth over Rs 1,336 crore during the quarter, bolstering its overall order book to Rs 6,355 crore. The stock has a 52-week high of Rs 413.08 & a 52-week low of Rs 216.33 and has been maintaining a healthy dividend payout of 88.3 per cent. The stock has an ROE of 18 per cent and an ROCE of 25 per cent. Investors should keep a close eye on this railway civil construction stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.