Rs 5,690 crore order book: This multibagger railway civil construction company bags new order worth Rs 50.18 crore from Government of Assam
The stock gave multibagger returns of 220 per cent in just 2 years whereas BSE Sensex Index is up by 50 per cent.
Rites Ltd has been awarded a contract by the Public Works Roads Department (PWRD) of the Government of Assam to provide third-party monitoring and quality control services for 47 roads spanning a total length of 996.7 kilometres across Assam. This project falls under the Asom Mala 2.0 infrastructure development initiative. The 18-month contract, valued at Rs 50.18 crore (inclusive of 18 per cent GST) or Rs 42.53 crore (excluding GST), signifies Rites Ltd.'s successful bid and their role in ensuring quality construction practices and adherence to specified standards for these crucial roadways in Assam.
Earlier, the company landed a Rs 26.79 crore contract (plus GST) to manage building railway freight terminals in Dharmapura and Susheel Nagar, Bellary District from the Karnataka Mining Environment Restoration Corporation. This 2-year project under CEPMIZ regulations will see RITES overseeing the entire construction process, from signing the contract to delivering the prepared site.
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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. 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 382.90. 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 220 per cent in just 2 years whereas BSE Sensex Index is up by 50 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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