The shares of Rites Ltd gained 2 percent, reaching an intraday high of Rs 387.85 on Friday’s first half session. The company has a market capitalization of Rs 9,172 crores. The stock jumped after the company received an international order.
According to the exchange filing, the company signed a Contract Agreement with the National Railways of Zimbabwe (NRZ) to supply rolling stock for Diesel Electric Locomotives and High-Sided Open Wagons for the amount of $81 million.
At 12:15 pm, the stock was trading at Rs 383.15 on the NSE, up 1.35 percent from its previous close.
During the March quarter, the Company received over 70 orders totaling Rs 775 crore, resulting in a total order book of Rs 5,870 crore as of March 2023.
In the fiscal year 2023, the order book is expected to be Rs 3,000 crore, with 240 new and extended orders.
Over a one-year period, the stock has gained 64.22 percent with a price from Rs 233.10 to current levels.
Rail India Technical and Economic Service (RITES) was established in 1974, it is undertaken by the Ministry of Railways as a public sector enterprise. The company is one of the leading players in the transport consultancy and engineering sector in India, and exports railway equipment globally.
On a year-on-year basis, revenue decreased slightly from Rs 2,661 crore in FY 21-22 to Rs 2,628 crore in FY 22-23. The Net Profit climbed by 6 percent during the same time, from Rs 537 crore to Rs 570 crore.
The firm has kept profitability ratios at acceptable levels. For fiscal year 2023, ROE was 21.92 percent and ROCE was 25.84 percent. Similarly, the operating margin increased to 29.67 percent, while the net profit margin remained at 21.68 percent.
As per the shareholding pattern, promoters of the company hold 72.2, Foreign institutional investors hold 3.37 percent, and domestic institutional investors hold a 15.89 percent stake in the company for FY 22-23.
Written by Omkar C
