Rs 5,702 crore order book: This civil construction company signs MoU with iHUB DivyaSampark IIT-Roorkee to explore business avenues!

The stock gave 50 per cent returns in just 6 months with an ROE of 21.3 per cent and a ROCE of 31 per cent.

RITES Limited, a leading transport infrastructure consultancy and engineering company, signed a Memorandum of Understanding (MoU) with iHUB DivyaSampark, IIT-Roorkee, to jointly explore business opportunities related to innovative technologies. Under this arrangement, RITES and iHUB DivyaSampark IIT-Roorkee will collaborate on projects, events, and network facilitation to explore opportunities for cyber-physical systems-related innovation and emphasis on developing technology/Industry 4.0 and AI-based solutions to meet the industry's requirements. Both entities will also collaborate and explore AI applications in fields such as rolling stock maintenance, inspection, maintenance of bridges, office management, and airports etc.

Earlier, the company was the lowest bidder (L-1) in the tender floated by the Railway Board, India Railways. The estimated order value is approximately Rs 65.4 crore. The order includes the inspection of 60,00,000 MT Rails for 5 years.

Additionally, the company signed a memorandum of understanding (MoU) with NHPC Limited, a premier hydropower-generating company under the Ministry of Power, to collaborate on comprehensive Consultancy services for Rail Infrastructure facilities for NHPC’s hydropower projects.

As of June 30, 2023, the company's order book amounted to Rs 5,702 crore. The company secured more than 70+ orders worth Rs 300+ crore.

On Thursday, shares of Rites Ltd surged 0.79 per cent to Rs 508.05 per share with an intraday high of Rs 516.20 and an intraday low of Rs 504.60. The stock has a 52-week high of Rs 540.70 and a 52-week low of Rs 281.85.

The company reported excellent numbers in both Quarterly Results and annual results. The stock has an ROE of 21.3 per cent and a ROCE of 31 per cent. The stock is up by 50 per cent in just 6 months and over 90 per cent in 2 years. 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.