Rs 5,690 crore order book: This multibagger civil construction company bags new order worth Rs 321.30 crore from Directorate of Medical Education & Research, Mumbai

The stock gave multibagger returns of 165 per cent in just 2 years whereas BSE Sensex Index is up by 47 per cent.

RITES Ltd has secured a domestic project management consultancy (PMC) contract from the Directorate of Medical Education & Research, Mumbai, to oversee the construction of a new 100-student capacity government medical college and a 430-bed hospital in Amravati, Maharashtra. This turnkey project, valued at an estimated Rs 321.30 crore (excluding GST), spans 30 months, followed by a 60-month defect liability period.

Earlier, RITES Ltd secured two significant contracts. The first, a Rs 50.18 crore deal with the Assam government, mandates the company to oversee the quality of construction for 47 roads, totalling 996.7 kilometres, under the Asom Mala 2.0 initiative. This 18-month project will see RITES ensuring adherence to standards on these crucial roadways. Concurrently, the company has been awarded a Rs 26.79 crore contract to manage the construction of railway freight terminals in Karnataka, overseeing the entire process from inception to completion over two years.

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 165 per cent in just 2 years whereas BSE Sensex Index is up by 47 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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