PSU stock known for its excellence in transport infrastructure consultancy and project management, has announced a major achievement with the securing of a significant order worth Rs. 28.50 Crores from Gujarat Urban Development Company Limited (GUDC).
With a market capitalization of Rs. 13,445 Crores, shares of RITES Limited opened at Rs. 281.90 per equity share, from its previous day’s closing price of Rs. 275.85. The received order pertains to the “Appointment of Third-Party Inspection(TPI) Agency for Water Supply Schemes(WSS), Underground Drainage(UGD), and Sewage Treatment Plant(STP) Projects” under two key government initiatives: AMRUT2.0 / SJMMSVY yojana and it is to be executed within 60 months.
These schemes are crucial to improving Urban Infrastructure and sanitation standards across Urban Local Bodies in the State of Gujarat. The project will span 60 months, indicating a long-term engagement that not only reflects but also promises steady revenue generation over the next five years.
It was established in 1974 , and became one of India’s premier players in the transport consultancy and engineering sector. It has evolved into a diversified multinational company with services spanning consultancy, turnkey projects, exports, and leasing.
Rites Limited has reported a historic high in its order book, reaching Rs. 8,877 Crore as of 31 march 2025 making a strong financial year. Coming to the breakup it derived 47.7 percent of its revenue from Turnkey Projects, 33.59 percent from Consultancy, 15.32 percent from exports, and the remaining 3.37percent from others.
RITES Limited has a Return on capital Employed (ROCE) 20.8 percent, indicating strong capital efficiency. The Return on Equity (ROE) stands at 14.7 percent Reflecting consistent Profitability. The Company’s Price to earnings ratio is 35.3 times the industry average is 23.4 showing a moderate market valuation. The operating Profit margin (OPM) is Healthy at around 23.2 percent, which highlights efficient operations.
Written by: Sudeep Kumbar
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