Rs 5,496 crore order book & FIIs increase stake: This multibagger civil construction company bags new order worth Rs 915 crore from Bangladesh Railway

The stock gave multibagger returns of 190 per cent in just 2 years whereas BSE Sensex Index is up by 40 per cent.

RITES Limited, a leading engineering consultancy firm, today signed a contract agreement for supplying 200 Broad Gauge (BG) passenger carriages to Bangladesh Railways.

The export arm of Indian Railways, RITES has won the $111.26 million (approx. Rs 915 crore) contract, funded by European Investment Bank (EIB), through a global competitive bidding process. As per the terms & conditions of the contract, besides supply, RITES will offer its expertise in design, spare parts support and training. The contract has a supply with a commissioning period of 36 months, followed by a warranty period of 24 months.

The contract highlights the Navratna CPSE’s commitment to fostering growth through the export of indigenously developed world-class railway rolling stock, in line with the vision of ‘Make in India, for the World’. RITES has been an old partner in Bangladesh’s path to infrastructure development. Earlier, it had supplied 120 BG Passenger Coaches (LHB type), 36 BG locomotives and 10 Meter Gauge locomotives to Bangladesh Railways, besides collaborating on other infrastructure projects.

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.

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As of December 31, 2023, the company's order book amounted to Rs 5,496 crore. As of March 2024, FIIs have increased their stake to 4.17 per cent compared to 3.37 per cent in March 2023. The stock has a 52-week high of Rs 826.15 and a 52-week low of Rs 365. 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 21.3 per cent and an ROCE of 30 per cent. The stock gave multibagger returns of 190 per cent in just 2 years whereas BSE Sensex Index is up by 40 per cent. Investors should keep a close eye on this civil construction stock under the radar.

Disclaimer: The article is for informational purposes only and not investment advice.