This Navratna PSU stock, which is a prominent player in India’s transportation consultancy and engineering industry, recognized for its proficiency in engineering and project management services, jumped 6% after receiving an order worth Rs. 28 crore from South Central Railway for the high-speed elevated rail corridor project.
Stock Price Movement:
With a market capitalization of Rs. 10,563.67 crores, the share of Rites Limited has reached an intraday high of Rs. 224.80 per equity share, rising nearly around 5.64 percent from its previous day’s close price of Rs. 212.80. Since then, the stock has retreated and is currently trading at Rs. 219.80 per equity share.
What Happened:
RITES Limited has received a letter of acceptance from South Central Railway for conducting the final location survey for the high-speed elevated rail corridor between Hyderabad-Bengaluru and Hyderabad-Chennai. The contract is valued at Rs. 27.96 crores and is to be completed within 8 months.
This project includes preparing the detailed project report (DPR), final alignment design, traffic survey report, ROR calculations, detailed estimate, and EPC documents using modern survey techniques like airborne or terrestrial LIDAR. This is a domestic transaction between a government and a government company.
Order Book:
As of December 31, 2024, RITES Limited’s total order book is valued at Rs. 7,978 crore. The largest share of this comes from the turnkey segment, accounting for 44.8 percent, followed by the consulting segment at 34.8 percent. Exports contribute 16.5 percent, while the REMC Limited and Lease segments represent 1.5 percent and 2.4 percent, respectively.
Recent Strategic Partnerships:
The company has recently entered into a Memorandum of Understanding (MoU) with Etihad Rail in the UAE to explore potential opportunities in the Middle East. In addition, the company has also signed MoUs with NISE to provide quality assurance services in the renewable energy sector and with SAIL for collaboration on rail connectivity projects.
Recent Quarterly Results:
RITES Limited reported a decline in revenue, which dropped by 16.11 percent YoY from Rs. 683 crore in Q3 FY24 to Rs. 576 crore in Q3 FY25. Similarly, the company’s net profit decreased by 15.50 percent, falling from Rs. 129 crore in Q3 FY24 to Rs. 109 crore in Q3 FY25.
Written By – Nikhil Naik
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