Rs 8,877 Crore Order Book: Civil Construction Company and Hindustan Copper Sign MoU to Boost Critical Mineral Supply Chain

The company delivered a 1.78 per cent return over the past year and an impressive 153.6 per cent return over the last three years.

In a significant move aimed at reshaping India's mineral logistics landscape, RITES Limited, a public sector enterprise specialising in transport consultancy and engineering, has signed a Memorandum of Understanding (MoU) with Hindustan Copper Limited (HCL). This strategic partnership is set to establish a rapid, reliable, and sustainable supply chain for critical minerals within India and abroad, aligning with national objectives for mineral security and economic resilience.

The collaboration seeks to capitalise on the technical and financial capabilities of both organisations to streamline the entire value chain—from exploration and extraction to refining and production. As part of the agreement, RITES will provide comprehensive logistics solutions, including project planning, transport infrastructure development, and multimodal transport systems to support HCL's mining initiatives. The partnership also includes a joint effort to bid in upcoming mineral block auctions and develop robust mining infrastructure.

RITES, established in 1974, operates across multiple business segments such as Consultancy, Turnkey, Exports, and Leasing. In the first nine months of FY25, the Consultancy segment generated 47 per cent of the company’s revenue, despite an 8 per cent year-on-year decline due to reduced Quality Assurance assignments. The Turnkey segment, contributing 32 per cent of revenue, also witnessed an 8 per cent dip. On the other hand, the Leasing segment grew by 11 per cent, while Exports, which comprise 15 per cent of revenue, remained subdued. With a robust order book valued at Rs 7,978 crore, RITES plans to increase its international business share to 25 per cent and achieve a 20 per cent revenue growth target in FY26.

As of June 6, 2025, the stock price of RITES stands at Rs 300.05. The company’s 52-week high is Rs 387.75, and the 52-week low is Rs 198.45. Despite short-term fluctuations, RITES has delivered a 1.78 per cent return over the past year and an impressive 153.6 per cent return over the last three years, drawing investor attention in the mid-cap segment. With a market capitalisation of Rs 14,860 crore and a price-to-earnings (PE) ratio of 34.51, the stock reflects investor confidence in the company’s long-term prospects.

This MoU with HCL aligns with RITES’ strategy to contribute to sustainable development and build a self-reliant mineral supply ecosystem. It may also position RITES to benefit from future opportunities, including right issues, dividends, and quarterly results that attract long-term institutional and retail investors.

Disclaimer: The article is for informational purposes only and not investment advice.