1:1 bonus share & Rs 6,355 crore order book: Railway civil construction company bags order worth Rs 36.36 crore from Delhi Metro Rail Corporation Ltd
The stock has an ROE of 18 per cent and an ROCE of 25 per cent.
RITES Limited, a leading transport infrastructure consultancy firm, has secured a significant contract from the Delhi Metro Rail Corporation Limited (DMRC). The company has received a Letter of Acceptance (LOA) on November 5, 2024, for the "Retrofit Work in RS-1 Trains of DMRC." This domestic contract entails the modernization and upgrade of the DMRC's existing RS-1 trains. The project is estimated to be completed within a timeframe of 3 years from the issuance of the Letter of Award. RITES' share in this contract is approximately Rs 36.36 crore, excluding GST.
Earlier, the company entered into an memorandum of Understanding (MoU) with SAIL-Bokaro Steel Plant (SAIL-BSL), under the Ministry of Steel, to collaborate for project management consultancy for rail connectivity works involving both existing and new railway tracks across various sites within the Bokaro Steel Plant in Jharkhand. Under the MoU, RITES will provide comprehensive services, including surveying, engineering, project monitoring, supervision and quality control.
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.
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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 217.68 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.