PSU Railway Infrastructure Company Signs MoU with Eastern Railway's Andal Diesel Shed for Repair and Maintenance of Diesel-Electric Locomotives; FIIs Increased Stake!

The shares of the company have delivered a return of over 180 per cent to its shareholders.

RITES a Large-Cap consultancy in transport infrastructure, has entered into a Memorandum of Understanding (MoU) with Eastern Railway's Andal Diesel Shed, Asansol Division, West Bengal. This MoU establishes a framework for collaboration on the major scheduled repair and maintenance of Diesel-Electric Locomotives owned by RITES and other clients at the Andal Diesel Shed facility. The partnership aims to streamline the repair and maintenance process for diesel locomotives. Under this collaboration, RITES will seek out or identify business opportunities for higher scheduled repairs, while the Andal Diesel Shed will carry out the maintenance work.

On Wednesday, the share of Rites Limited closed at around Rs 681.90 per share, with a market capitalization of Rs 16,386 crore. The stock has delivered a return of around 82 per cent in just 1 year.

As per the Quarterly Results, in the fourth quarter of FY24, the company recorded a revenue of Rs 643 crore. The operating profit for Q4 FY24 stood at Rs 176 crore, resulting an operating profit margin of 27 per cent. The net profit for Q4 FY24 was Rs 137 crore. Furthermore, earlier the company announced an interim dividend of Rs 4.75 per share for FY24.

About Rites Limited

RITES Limited, a Navratna Public Sector Enterprise, is a prominent figure in the transport consultancy and engineering sector in India, boasting diversified services and a wide geographical presence. With 50 years of experience, the company has executed projects in more than 55 countries across Asia, Africa, Latin America, South America, and the Middle East region.

Investors must keep this large-cap multibagger stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.