Rs 500 crore order secured: Miniratna civil construction stock hits new 52-week high!
The company has a substantial ownership of 72.20 per cent held by the President of India.
On Monday, despite muted market sentiments, the shares of RITES Limited surged 6.94 per cent, the stock hits fresh 52-week high mark of Rs 501.20 per share on BSE. Additionally, the scrip witnessed a massive spurt in volume by more than 4.03 times. This indicates heavy buying among investors. The company's current market capitalization is Rs 11,546.51 crore.
Today, RITES emerged as the lowest bidder in CFM, Mozambique's tenders for locomotives and wagons. The company has secured a significant contract.
The international entity, CFM, awarded RITES the contract for supplying 10 locomotives and 300 wagons, with an estimated value of Rs 500 Crore. Notably, there are no interests from the promoter/promoter group/group companies in the awarding entity, and the contract is not considered a related party transaction.
However, the final contract execution timeline is yet to be determined, subject to CFM's scrutiny and evaluation of compliance with tender requirements.
Company profile:
RITES Limited previously known as Rail India Technical and Economic Service Limited, is a Miniratna (Category-I) Central Public Sector Undertaking under the Ministry of Railways. Established on April 26, 1974, it operates as a multidisciplinary engineering and consultancy organization. It offers a wide array of services spanning from conceptualization to project execution in various aspects of transport infrastructure and related technologies. Its expertise covers the entire spectrum of the transportation sector making it a key player in the industry.
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The company has been consistently maintaining a robust dividend payout of 80.8 per cent. This steady and substantial dividend distribution demonstrates the company's commitment to providing attractive returns to its shareholders.
The company has delivered impressive returns of over 87 per cent in the past year.
The cherry on top is that the President of India holds a significant stake of 72.20 per cent in RITES Limited, showcasing the government's strong interest and active involvement in the company's affairs.
Investors should keep a close eye on this civil construction stock.
Disclaimer: The article is for informational purposes only and not investment advice.