Rs 5,529 crore order book: Heavy buying was witnessed in this PSU stock which gained over 150% in three years

Shares of Rites Limited gained about 11% today. The stock has witnessed heavy buying activity from investors. Recently, Rites Limited won IIT Bhubaneswar’s infrastructure development project, scoring the top spot (H1) and securing the Project Management Consultancy (PMC) contract. The MoU is still pending finalization, but the estimated project cost, including PMC fees, stands at a significant Rs. 414 crores. This marks a major win for RITES, further solidifying their position in the domestic infrastructure market.

The shares of Rites Limited have also delivered multibagger returns to its shareholders in the last three years. During this period, the company’s share price surged from Rs 253.95 on January 29, 2021, to Rs 638 on January 25, 2024, representing an increase of over 150% in a three-year holding period.

An investment of Rs 1 lakh in this company’s shares three years ago would have grown to Rs 2.5 lakh today.

Financial Performance

In Q2FY24, the company posted an 11.64% decline in its consolidated revenue at Rs 582.36 crore compared to Rs 659.08 crore from the previous year’s corresponding quarter. The operating profit of the company stood at Rs 164.29 crore, while the PAT of the company stood at Rs 108.59 crore, from Rs 140.37 crore last year same quarter. The company has an order book of Rs 5,529 crore as of September 30, 2023.

Business Overview

RITES Limited is a public sector enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The company is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia, and Indonesia).

Stock Price Movement

Today, the stock opened at Rs 581.35, with a high and low of Rs 653 and Rs 580.80, respectively. The stock is currently trading at Rs 643.70, which increased by 11.36%. The stock has a 52-week high of Rs 657.85 and a 52-week low of Rs 311.60. The company has an ROCE of 29.7% and an ROE of 21.3%, with a market capitalization of Rs 15,427 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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