This miniratna company signs an MoU with NHPC for Rail Infra consultancy

Rites Ltd, a distinguished Miniratna and Public Sector Enterprise, has firmly established itself as a key player in India’s dynamic transport consultancy and engineering sector. With an illustrious legacy spanning 49 years, the company’s presence is characterized by its extensive array of services that encompass a diverse range of sectors.

Rites services extend to railways, highways, urban engineering (metros) and sustainability initiatives, airports, ports, ropeways, institutional buildings, inland waterways, and the burgeoning domain of renewable energy. What sets RITES apart is its remarkable global outreach. The company’s footprint extends to more than 55 countries, spanning continents such as Asia, Africa, Latin America, South America, and the Middle East.

Rites Ltd has recently entered into a memorandum of understanding (MoU) with NHPC Limited, a significant hydropower generation company operating under the Ministry of Power. This collaboration aims to facilitate comprehensive consultancy services pertaining to Rail Infrastructure facilities for NHPC’s hydropower ventures.

The focus areas of this partnership encompass new rail connectivity, logistics optimisation, and associated infrastructure, including the integration of Rapid Loading Systems (RLS/SILO) and conveyor systems. These efforts will be directed towards the advancement of the rail infrastructure at Pasighat, specifically for NHPC’s 2880-MW Dibang Multipurpose Project (MPP) situated in Arunachal Pradesh.

The company has delivered great returns of 71% over the past year and stellar returns of 89% over the past 3 years. Additionally, the company has a ROCE of 30.5% and a ROE of 21.3%. Moreover, the company has been maintaining a healthy dividend payout ratio of 80.8%.

On Tuesday, shares of the company surged by more than 2% and made an intraday high of Rs 490.85. Moreover, the scrip had a spurt in volume by more than 1.38 times.

Investors should keep a close eye on this trending 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.