This Navratna PSU stock is a leading player in India’s transport consultancy and engineering sector, known for its expertise in engineering and project management services, in focus after receiving a contract order worth Rs. 467 crore from NLC India for railway projects.
Stock Price Movement:
With a market capitalization of Rs. 9,938.89 crores, the share of Rites Limited has reached an intraday high of Rs. 209.25 per equity share, rising nearly around 1.21 percent from its previous day’s close price of Rs. 206.75. Since then, the stock has retreated and is currently trading at Rs. 206.80 per equity share.
What Happened:
RITES Limited has secured a significant contract order from NLC India Limited for the development of a railway siding at the Machhakata coal mine and the adjacent New Patrapara South coal mine. The project includes preparing a feasibility study report (FSR), a detailed project report (DPR), detailed engineering (DE), and project management in a turnkey depositary mode on a cost-plus-fee basis.
The contract is valued at approximately Rs. 466.55 crores (excluding GST) and is set to be completed within 36 months, from concept to commissioning.
Order Book:
As of December 31, 2024, RITES Limited’s total order book stands at Rs. 7,978 crore. The largest portion comes from the turnkey segment (44.8 percent), followed by consulting (34.8 percent). Exports contribute 16.5 percent, while REMC Limited and Lease segments make up 1.5 percent and 2.4 percent, respectively.
Recent Strategic Partnerships
The company has signed a Memorandum of Understanding (MoU) with Etihad Rail in the UAE to explore opportunities in the Middle East. Additionally, the company has signed MoUs with NISE for quality assurance services in the renewable energy sector and with SAIL for rail connectivity works.
Recent Quarterly Results and Ratios
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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