1:1 bonus share & Rs 6,581 crore order book: Railway civil construction stock jumps 12.6 per cent; Bags order worth Rs 531.77 crore from Northeast Frontier Railway
The stock has an ROE of 18 per cent and an ROCE of 25 per cent.
On Monday, shares of RITES Limited jumped 12.6 per cent to Rs 310 per share from its previous closing of Rs 275.20 per share. At the closing bell, shares of the company were trading at Rs 293.90 per share, up 6.80 per cent with a spurt in volume by more than 5 times on BSE.
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 Limited announced that it has secured a revised estimate for the Railway Electrification work of the Lumding-Badarpur section of the Lumding Division, Northeast Frontier Railway. This significant order, awarded by Northeast Frontier Railway, involves a turnkey project for the electrification of the LMG-BPB section. The revised total cost of the project, excluding GST and PMC fees, is Rs 531.77 crore, a substantial increase from the original estimate of Rs 288.44 crore. This domestic project is currently underway.
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Earlier, RITES Limited joined forces with the National Institute of Solar Energy (NISE) to elevate the quality standards in the solar and renewable energy sector. This strategic partnership leverages RITES' deep-rooted expertise in quality assurance and NISE's pioneering research in solar energy technology. By combining their strengths, they aim to deliver innovative solutions for solar PV, solar thermal applications, green hydrogen, and other renewable energy domains.
Quarterly Results & Half-Yearly Results: For the second quarter of fiscal year 2025 (Q2FY25), the company reported consolidated operating revenue of Rs 541 crore, resulting in an EBITDA of Rs 107 crore, translating to a margin of 19.9 per cent. However, the company's net profit after tax (PAT) declined to Rs 83 crore compared to Rs 110 crore in the same quarter of the previous fiscal year. For the first half of FY25 (H1FY25), the company's total revenue stood at Rs 1,070 crore, down from Rs 1171 crore in H1FY24. EBITDA for the half-year period was Rs 215 crore with a margin of 21 per cent. The company's PAT for H1FY25 was Rs 173 crore, a decrease of 24.3 per cent compared to Rs 230 crore in H1FY24.
The company has a market cap of over Rs 14,000 crore and as of September 30, 2024, its order book stands at Rs 6,581 crore. The shares of the company ex-traded 1:1 bonus equity share as of Friday, September 20, 2024. The stock has a 52-week high of Rs 413.08 & a 52-week low of Rs 231 and has been maintaining a healthy dividend pay-out 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.