This railway PSU stock was trending today

This company is Indian Railways' sole export arm for providing rolling stock in the international markets.

On December 28, the shares of RITES Ltd surged 7 per cent and closed trading at Rs 335.65. The stock opened at Rs 320 and since has made an intraday high and low of Rs 338.9 and Rs 315.2, respectively.   

RITES Ltd is a public sector enterprise that is a leading player in the transport consultancy and engineering sector in India, offering a wide range of services and having a large geographical footprint. The company is Indian Railways' sole export arm for providing rolling stock in the international markets.   

FY22 was a very successful year for the company when the highest ever sales and net profit figures were recorded. The FY22 sales and net profit stood at Rs 2662 and Rs 539 crore, respectively. As per the FY22 period ending the company has ROE and ROCE of 21.1 per cent and 30.2 per cent, respectively.   

For the latest September quarter, on a consolidated basis, the company generated revenue of Rs 659 crore, reporting a YoY decline of 13 per cent. Similarly, its net profit declined YoY by 19.5 per cent from Rs 174 crore in Q2FY22 to Rs 140 crore in Q2FY23.  

About the shareholding pattern, 72.2 per cent of the stake is owned by the Government of India, 1.48 per cent by FIIs, 17.26 per cent by DIIs and the rest 9.06 per cent by non-institutional investors.   

The company has a market capitalization of Rs 8065 crore and is currently trading at a PE multiple of 14.39. The stock has a 52-week high and low of Rs 433.2 and Rs 226.05, respectively.   

The government’s focus on transport infrastructure is painting a positive outlook for the company.