1:1 Bonus Share & Rs 6,355 Crore Order Book: Railway Civil Construction Company & NMDC collaborate for Rail Connectivity works
The stock has an ROE of 18 per cent and an ROCE of 25 per cent.
RITES Ltd, a premier transport infrastructure consultancy, entered into a Memorandum of Agreement (MoA) with NMDC Limited, India’s largest iron ore producer, to provide comprehensive Project Management Consultancy services. This MoA marks a strategic collaboration aimed at developing, upgrading and creating rail connectivity for NMDC’s mines and related facilities across locations.
Through this partnership, RITES will offer end-to-end Consultancy services from concept to commissioning, focusing on the reconnaissance survey, feasibility study, Detailed Project Report (DPR), and project management for rail connectivity projects. This includes allied civil works such as roads, bridges, and other infrastructure necessary for efficient transportation and logistics in NMDC’s operational areas.
The collaboration emphasizes RITES’ capabilities in handling complex railway infrastructure projects and NMDC’s commitment to enhancing operational efficiencies through modern rail connectivity. With expertise in railway engineering and project management, RITES will assist NMDC in executing these critical projects to streamline the transport of raw materials and improve logistical capabilities.
Earlier, the company has been awarded multiple railway infrastructure projects in recent months. In Karnataka, the company has secured a turnkey contract to construct railway PFTs in Dharmapura and Susheel Nagar, valued at Rs 453.99 crore. In Andhra Pradesh, RITES has been tasked with constructing a bypass line connecting the RTPP yard to Kalamalla Railway Station and RTPP Siding, with a project value of Rs 53.5 crore. Additionally, RITES has entered into a partnership with Etihad Rail to collaborate on railway infrastructure projects in the UAE, focusing on areas such as rolling stock, consultancy, project management, maintenance, and operation.
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Furthermore, the shares of the company ex-traded 1:1 bonus equity share as of Friday, September 20, 2024.
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 413.08 & 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.