Rs 8000 crore Order Book: Government Railway Enterprise Signs MoU for 5 Big Projects to Transform Ports, Rail, and Logistics Infrastructure

With a PE ratio of 27.4x, the company trades at a premium compared to the industry PE of 28.8x. The company has ROCE of 25.4 per cent and ROE of 17.5 per cent.

RITES Limited, a Government of India Enterprise, has announced a significant Memorandum of Understanding (MoU) with DP World to collaborate on the development of trade, logistics, and infrastructure projects. 

The MoU outlines plans for mutual collaboration between the two entities, focusing on exploring joint opportunities in various infrastructure development areas. Key areas of collaboration include: Ports, Multimodal logistics parks, Free trade zones, Rail connectivity projects and Logistics infrastructure services.

The signing ceremony was held in the presence of several high-profile dignitaries, including:

• HH Sheikh Hamdan Bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Deputy Prime Minister and Minister of Defence of the UAE

• Shri Piyush Goyal, Hon'ble Minister of Commerce and Industry, Government of India

• His Excellency Sultan Ahmed bin Sulayem, Group Chairman and Chief Executive Officer of DP World

• Mr. Rahul Mithal, Chairman & Managing Director of RITES Limited

The event, named "CEO Connect: Dubai-India Economic Ties & Opportunities in Mumbai," highlighted the collaboration's potential to enhance infrastructure development and trade between India and the UAE.

RITES Limited, established in 1974, is a prominent public sector enterprise specializing in transport consultancy and engineering services in India. As the sole export arm of Indian Railways, the company provides rolling stock to international markets, excluding Thailand, Malaysia, and Indonesia. As of March 2025, RITES' stock is trading at Rs 204.4, with a market capitalization of Rs 10,063.84 crores. Despite a challenging year with a 34.34 per cent decline in one-year returns, the company boasts a robust three-year return of 56.12 per cent, reflecting its long-term growth trajectory. RITES continues to leverage its diversified services and geographical reach to maintain its leadership in the sector. The company has been maintaining a healthy dividend payout of 88.3 per cent.

In the Quarterly Results of Dec-24, the revenue stood at Rs 575.76 crore, showing a YoY decline of 15.69 per cent from Rs 682.89 crore in Dec-23 but a QoQ growth of 6.45 per cent from Rs 540.86 crore in Sep-24. The net profit for Dec-24 was Rs 100.09 crore, reflecting a YoY decline of 16.69 per cent from Rs 120.14 crore in Dec-23 but a QoQ increase of 37.15 per cent from Rs 72.98 crore in Sep-24. The net profit margin for Dec-24 stood at 17.38 per cent, compared to 13.49 per cent in Sep-24 and 17.59 per cent in Dec-23.

For the full-year FY24 results, the revenue stood at Rs 2,452.85 crore, marking a decline of 6.67 per cent from Rs 2,628.27 crore in FY23. The net profit for FY24 was Rs 378.19 crore, reflecting a decrease of 13.81 per cent from Rs 403.61 crore in FY23. The net profit margin for FY24 stood at 16.45 per cent compared to 17.82 per cent in FY23.

As of December 2024, the shareholding pattern shows that promoters hold 72.20 per cent, FIIs hold 3.34 per cent, DIIs hold 8.83 per cent, and the public holds 15.63 per cent. There is a significant decline in DII holdings from 9.63 per cent in the previous quarter to 8.83 per cent, while public shareholding has increased from 14.95 per cent to 15.63 per cent.

With a PE ratio of 27.4x, the company trades at a premium compared to the industry PE of 28.8x. The company has ROCE of 25.4 per cent and ROE of 17.5 per cent.  

Investors must keep this Small-Cap stock on their radar.

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