Rs 7,978 Crore Order Book: Railway Civil Construction Company Bags Orders Worth Rs 586.68 Crore From NLC India Ltd & NUPPL

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

RITES Limited has secured two significant orders totalling Rs 586.68 crore. The first, valued at an estimated Rs 466.55 crore (excluding GST), comes from NLC India Limited. This contract tasks RITES with the complete project lifecycle, from feasibility study and detailed project report to detailed engineering and project management, for the construction and commissioning of a railway siding at the Machhakata (Revised) and New Patrapara South coal mines. The project is expected to be completed within 36 months, covering everything from initial concept to final commissioning.

The second order is a Memorandum of Understanding (MoU) with Neyveli Uttar Pradesh Power Limited (NUPPL), a joint venture between Neyveli Lignite Corporation India Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited. This MoU, worth Rs 120.13 crore (excluding GST and escalation), appoints RITES to handle the comprehensive operation and maintenance of the NUPPL/GTPP Railway Siding for a period of five years. Both orders are domestic and represent a substantial boost to RITES' project portfolio.

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.