Shares of this Navratna stock engaged in the business of civil construction gained around 4 percent in Tuesday’s trading session after the company signed a Memorandum of Understanding (MoU) with North Eastern Electric Power Corporation Limited (NEEPCO) for consultancy works.
With a market capitalization of Rs 12,176.10 crores, the stocks of RITES Limited started their trading session on Tuesday at Rs 493.80 and currently trade at Rs 506.70, gaining approximately 4 percent as compared to the previous closing levels of Rs 486.95 apiece.
Such bullish movements in the stock prices were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has signed an MoU with NEEPCO for consultancy works to strengthen the logistical infrastructure at various hydropower stations, including the ‘Siang Basin’.
As per the MoU, RITES will support as a Project Management Consultant on rail infrastructure facilities, including overhead equipment, signalling & telecommunications, and conveyor systems. The collaboration also entails work related to buildings, roads, and other civil ancillary structures, including utilities.
During the recent financial quarters, the basic business parameters such as operating revenues and net profits showed movements in opposing directions.
The former, on one end, moved up marginally from Rs 544.35 crores during Q1FY23-24 to Rs 582.36 crores during Q2FY23-24, and, the latter, during the same period, reduced from Rs 119.73 crores to Rs 108.69 crores due to an increased cost pressure.
As per the recent presentations, the overall order book of the company, as of the September 2023 quarter, stands at Rs 5,529 crores dominated by two key segments, viz, the ‘consultancy’ segment (48 percent) and the ‘turnkey’ segment (46 percent).
RITES Limited is a multi-disciplinary organization with a wide range of operating segments including consultancy services, turnkey construction projects, power generation, leasing of railway rolling stock & equipment, etc. Geographically, it derives most of its revenue from domestic operations within India.
Written by Amit Madnani
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