Rs 8000 crore Order Book: Railway Company Secures USD 10.80 Million Contract Expansion with Ntokoto Rail Holdings for ALCO Diesel Locomotives, Doubling Previous Value of USD 5.40 Million
With a PE ratio of 26.8x, the company trades at a premium compared to the industry PE of 28.8x. The company has ROCE of 25.4 per cent and ROE of 17.5 per cent.
RITES Limited has announced a significant update regarding its ongoing contract with Ntokoto Rail Holdings Pty. Ltd., an international entity. The company has received an addendum to the original agreement, increasing the contract value from 5.40 million USD to 10.80 million USD. This expansion involves the supply and commissioning of overhauled Cape Gauge ALCO Diesel Electric Locomotives, fitted with new components, and includes on-site warranty support for one year. The contract is set to be executed within six months from the date of receipt of the advance payment. This development highlights RITES Limited's growing international footprint and expertise in transport consultancy and engineering. The company has confirmed that there is no promoter interest or related party transaction involved in this deal. This update is a testament to RITES Limited's strategic positioning in the global market, enhancing its service offerings to international clients.
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RITES Limited, established in 1974, is a prominent public sector enterprise specializing in transport consultancy and engineering services in India. As the sole export arm of Indian Railways, the company provides rolling stock to international markets, excluding Thailand, Malaysia, and Indonesia. As of March 2025, RITES' stock is trading at Rs 204.4, with a market capitalization of Rs 10,063.84 crores. Despite a challenging year with a 34.34 per cent decline in one-year returns, the company boasts a robust three-year return of 56.12 per cent, reflecting its long-term growth trajectory. RITES continues to leverage its diversified services and geographical reach to maintain its leadership in the sector. The company has been maintaining a healthy dividend payout of 88.3 per cent.
In the Quarterly Results of Dec-24, the revenue stood at Rs 575.76 crore, showing a YoY decline of 15.69 per cent from Rs 682.89 crore in Dec-23 but a QoQ growth of 6.45 per cent from Rs 540.86 crore in Sep-24. The net profit for Dec-24 was Rs 100.09 crore, reflecting a YoY decline of 16.69 per cent from Rs 120.14 crore in Dec-23 but a QoQ increase of 37.15 per cent from Rs 72.98 crore in Sep-24. The net profit margin for Dec-24 stood at 17.38 per cent, compared to 13.49 per cent in Sep-24 and 17.59 per cent in Dec-23.
For the full-year FY24 results, the revenue stood at Rs 2,452.85 crore, marking a decline of 6.67 per cent from Rs 2,628.27 crore in FY23. The net profit for FY24 was Rs 378.19 crore, reflecting a decrease of 13.81 per cent from Rs 403.61 crore in FY23. The net profit margin for FY24 stood at 16.45 per cent compared to 17.82 per cent in FY23.
As of December 2024, the shareholding pattern shows that promoters hold 72.20 per cent, FIIs hold 3.34 per cent, DIIs hold 8.83 per cent, and the public holds 15.63 per cent. There is a significant decline in DII holdings from 9.63 per cent in the previous quarter to 8.83 per cent, while public shareholding has increased from 14.95 per cent to 15.63 per cent.
With a PE ratio of 26.8x, the company trades at a premium compared to the industry PE of 28.8x. The company has ROCE of 25.4 per cent and ROE of 17.5 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.