Rs 6,355 crore order book: Railway civil construction company’s Board announces 1:1 bonus share; Check record date inside!
The stock gave multibagger returns of 150 per cent in just 2 years whereas BSE Sensex Index is up by 33 per cent.
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.
The Board of Directors has recommended a 1:1 bonus equity share for shareholders. The record date for bonus shares is fixed as Friday, September 20, 2024.
Earlier, RITES Ltd joined forces with Housing & Urban Development Corporation Ltd (HUDCO) to provide comprehensive consultancy services for a wide range of infrastructure projects, from conception to completion. This collaboration between the two Navratna CPSEs covers a vast spectrum of sectors, including metro rail, roads, airports, and emerging areas like energy, water resources, and urban development, with a particular focus on projects financed by HUDCO.
RITES Ltd., India's leading transport infrastructure consultancy and engineering firm, reported a decline in revenue and profits for the first quarter of the financial year 2024-25. The company's consolidated operating revenue, excluding other income, slipped by 10.8 per cent to Rs 486 crore compared to the previous year. Consequently, the net profit also contracted, reaching Rs 90 crore. While EBITDA stood at Rs 108 crore, the margins remained relatively stable. The primary factors contributing to this performance were a decrease in revenue from quality assurance, overseas consultancy, and export segments.
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Despite the revenue challenges, 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. While the consultancy segment continued to be the primary revenue driver, it faced margin pressures due to reduced revenue in specific areas and heightened competition. The leasing and turnkey segments also contributed to the overall performance. Although the export segment witnessed a significant downturn, the company expressed optimism about a recovery in the latter half of the year.
The stock has a 52-week high of Rs 826.15 & a 52-week low of Rs 432.65 with 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. The stock gave multibagger returns of 150 per cent in just 2 years whereas BSE Sensex Index is up by 33 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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