1:1 Bonus Share & Rs 6,355 Crore Order Book: Railway Civil Construction Company Bags New Order Worth Rs 53,50,00,000 From Andhra Pradesh Power Generation Corporation
The stock has an ROE of 18 per cent and an ROCE of 25 per cent.
RITES Ltd has been awarded a turnkey contract by Andhra Pradesh Power Generation Corporation to construct a bypass line connecting the RTPP yard to Kalamalla Railway Station and RTPP Siding. This project, previously awarded on a Project Management Consultancy basis, has now been converted into a turnkey contract. The project entails constructing a bypass line, with a total order value of Rs. 53.5 crore excluding GST (including PMC fee). The project is expected to be completed within 18 months.
Earlier, RITES and Etihad Rail signed a Memorandum of Understanding (MoU) to collaborate on railway infrastructure projects in the UAE and the wider region. The MoU, signed in October 2024, outlines areas of cooperation such as rolling stock, consultancy, project management, maintenance, and operation of railway infrastructure. Additionally, the partnership will involve capacity analysis of rail corridors, IT solutions for train operations and passenger management, knowledge transfer, expertise sharing and workforce development. By leveraging their respective strengths, RITES and Etihad Rail aim to contribute to the modernization and efficiency of rail services in the UAE and the region.
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 403.18 & 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.
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