Board likely to announce bonus shares tomorrow & Rs 5,690 crore order book: This multibagger railway civil construction company signs MoU with NHAI
The stock gave multibagger returns of 190 per cent in just 2 years whereas BSE Sensex Index is up by 42 per cent.
RITES Ltd., a prime transport infrastructure consultancy, signed a Memorandum of Understanding (MoU) with the National Highways Authority of India (NHAI), under the Ministry of Road Transport and Highways, Government of India. This partnership aims to deliver consultancy services for NHAI projects in the areas of highways, bridges tunnels and road safety audits. Under the terms of the MoU, RITES will conduct external technical audits, infrastructure health monitoring, and provide quality assurance and other related services.
Additionally, the company informed that the Board meeting is scheduled for July 31, 2024. The primary agenda of this meeting includes reviewing and approving the company's standalone and consolidated financial results for the quarter ending June 30, 2024, and considering the declaration of a first interim dividend for the financial year 2024-25. Additionally, the Board may also discuss a potential issuance of bonus shares. Given that the trading window is currently closed for the consideration and approval of financial results, this restriction will also apply to any potential bonus share issuance.
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About Rites Ltd
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.
As of March 31, 2023, the company's order book amounted to Rs 5,690 crore. The stock has a 52-week high of Rs 826.15 and a 52-week low of Rs 432.65. The company reported excellent numbers in both Quarterly Results & annual results and has been maintaining a healthy dividend payout of 80.8 per cent.
The stock has an ROE of 18 per cent and an ROCE of 25 per cent. The stock gave multibagger returns of 190 per cent in just 2 years whereas BSE Sensex Index is up by 42 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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