Rs 7,978 Crore Order Book: Railway Civil Construction Company Bags Orders Worth Rs 27.96 Crore From South Central Railway

The stock has an ROE of 18 per cent and an ROCE of 25 per cent.

RITES Limited has announced that it has secured a significant order from South Central Railway. The order involves conducting a Final Location Survey, which includes the preparation of a Detailed Project Report (DPR), Final Alignment Design, Traffic Survey Report, Rate of Return (ROR) calculations, Detailed Estimate, and preparation of Engineering, Procurement, and Construction (EPC) documents. This project will focus on the High-Speed Elevated Rail Corridor between Hyderabad-Bengaluru and Hyderabad-Chennai using modern survey techniques such as Airborne or Terrestrial LIDAR. The contract is valued at Rs 27.96 crore, excluding GST, and is expected to be executed within eight months. This transaction is between a government entity and a government company, ensuring that it does not fall under related party transactions.

About the Company

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 company has a market cap of over Rs 10,000 crore and as of December 31, 2024, its order book stands at Rs 7,978 crore. The stock has a 52-week high of Rs 413.08 & a 52-week low of Rs 200.35 and has been maintaining a healthy dividend pay-out 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.