The shares of this leading transport consultancy provider surged by approximately 3 percent on Tuesday after the company announced that it has secured a contract worth Rs 28.50 crore by being the lowest bidder in its segment.
With a market capitalization of Rs 13,567 crores, the shares of Rites Ltd are currently trading at Rs 282 per share, down by 29.23 percent from its 52-week high of Rs 398.50 per share. Over the past five years, the stock has delivered a return of 130 percent.
On Tuesday, through a stock exchange filing, RITES Ltd announced that it has become the lowest financial bidder in the QCBS Tender floated by Gujarat Urban Development Company Limited for the hiring of a Third Party Inspection (TPI) agency for Water Supply System (WSS)/Underground Sewerage (UGD)/Sewage Treatment Plant (STP) projects under Amrut 2.0/SJMMSVY for Urban Local Bodies within Gujarat. The contract is valued at Rs. 28.50 crore, excluding GST, and the duration of the contract will be for 60 months, however, the total final award will be subject to evaluation of technical and financial.
Financial Highlights
The company reported a revenue of Rs 2,218 crores in FY25, down by 9.58 percent from its FY24 revenue of Rs 2,453 crores. Coming to its profitability, it reported a net profit decline of 14.34 percent to Rs 424 crores in FY25 from Rs 495 crores in FY24.
The stock has delivered an ROE and ROCE of 14.66 percent and 20.81 percent respectively, and is currently trading at a P/E of 35.27x as compared to its industry average of 22.85x.
RITES Limited is engaged in the provision of engineering, consultancy and project management services for various sectors, including transport and renewable energy. In addition to the above sectors, the company engages in consultancy services, leasing contracts, exports, turnkey projects, and power generation services for both government and private customers, both within the domestic boundaries of India and also globally.
RITES Limited implements projects in railways, roads, airports, urban transport infrastructure, and renewable energy. RITES is registered as an infrastructure company with the stock exchanges of India and offers in-depth technical capability and innovative solutions across a range of infrastructure areas.
Written by Satyajeet Mukherjee
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