1:1 Bonus Share & Rs 6,355 Crore Order Book: Railway Civil Construction Company Bags New Order Worth Rs 453,99,00,000 From KMERC
The stock has an ROE of 18 per cent and an ROCE of 25 per cent.
Rites Ltd has secured a turnkey contract from Karnataka Mining Environment Restoration Corporation (KMERC) for constructing railway PFTs in Dharmapura and Susheel Nagar, Ballari District, under CEPMIZ. The contract, initially awarded on a Project Management Consultancy (PMC) basis, has been converted into a turnkey project. The project is valued at Rs 453.99 crore excluding GST and includes the PMC fee. The execution period is 30 months from the date of signing the agreement or the date of site handover, whichever is later.
Earlier, Rites Ltd secured a turnkey contract from Andhra Pradesh Power Generation Corporation to construct a bypass line connecting the RTPP yard to Kalamalla Railway Station and RTPP Siding, previously awarded on a Project Management Consultancy basis. The project, valued at Rs. 53.5 crore excluding GST, is expected to be completed within 18 months. In another development, RITES and Etihad Rail have signed an MoU to collaborate on railway infrastructure projects in the UAE. The partnership will focus on areas such as rolling stock, consultancy, project management, maintenance, and operation of railway infrastructure. By combining their expertise, RITES and Etihad Rail aim to modernize and improve rail services in the UAE and the wider region.
Furthermore, the shares of the company ex-traded 1:1 bonus equity share as of Friday, September 20, 2024.
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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.
RITES demonstrated its resilience by maintaining a robust order book. The company successfully secured 84 orders worth over Rs 1,336 crore during the quarter, bolstering its overall order book to Rs 6,355 crore. The stock has a 52-week high of Rs 403.18 & a 52-week low of Rs 216.33 and has been maintaining a healthy dividend payout of 88.3 per cent. The stock has an ROE of 18 per cent and an ROCE of 25 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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