This robust ROCE and high dividend yield small-cap stock signed a major MoU!
For the past three years, this stock has maintained a robust dividend payout ratio of 68 per cent, indicating a healthy distribution of dividends to its shareholders.
During Friday's trading session, the share price of Rites reached an intraday high of Rs 394.2, after which the stock encountered a sell-off as the market approached its closing time.
Rites Ltd and Power Finance Corporation (PFC) signed a MoU on May 26, 2023, to collaborate in sectors like transport & logistics, energy, water & sanitation, communication, social and commercial infrastructure. Rites will contribute expertise in areas such as pre-feasibility reports, project management services and audits, while PFC and its subsidiaries will provide financial assistance for infrastructure projects in India and abroad. The MoU aims to establish a working relationship and explore opportunities with various government bodies, private entities and multilateral funding agencies. Additionally, the company has a significant ROCE of 30.5 per cent and for the past three years the stock has maintained a robust dividend payout ratio of 68 per cent.
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Rites Limited, a public sector enterprise, holds a prominent position in India's transport consultancy and engineering sector. With its wide range of services and geographical presence, the company has established itself as a key player in the industry. Notably, Rites Limited serves as the exclusive export arm of Indian railways, responsible for supplying rolling stock to international markets.
The stock has generated a 55 per cent return over the past year and has delivered outstanding returns of 69 per cent over the last three years.
Investors should closely monitor this small-cap stock in the forthcoming trading sessions