Rs 5,496 crore order book: This multibagger civil construction company bags order worth USD 11,12,63,998.22 from Bangladesh Railway
The stock gave multibagger returns of 170 per cent in just 2 years whereas BSE Sensex Index is up by 31 per cent.
RITES Limited secured a significant international contract to supply 200 Broad Gauge (BG) passenger carriages to Bangladesh Railway. This 36-month project, valued at approximately USD 11,12,63,998.22 (CIF, Chittagong), includes not only the carriages themselves but also their drawings, parts catalogues, essential spare parts for both initial investment and maintenance purposes, overseas training for Bangladeshi personnel, a study tour, service engineers to assist with implementation, and even the de-processing and commissioning of the carriages upon arrival.
Earlier, Rites Ltd had signed 2 MoUs for project management consultancy for rail infra works. The first MoU was with Damodar Valley Corporation (DVC) and the other was with Ultratech Cement Limited (UTCL).
Established in 1974, RITES Limited is a leading public sector player in India's transport consultancy and engineering, offering diversified services from locomotive and train manufacturing to consultancy, exports, leasing and turnkey projects across railways, metros, airports, ports, highways, ropeways and urban infrastructure. As India's export arm for rolling stock (except Thailand, Malaysia, and Indonesia), it boasts expertise in various gauges and caters to diverse transportation needs.
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As of December 31, 2023, the company's order book amounted to Rs 5,496 crore. The company secured 100+ orders worth Rs 612 crore. As of March 2024, FIIs have increased their stake to 4.17 per cent compared to 3.37 per cent in March 2023.
The stock has a 52-week high of Rs 826.15 and a 52-week low of Rs 365. The company reported excellent numbers in both Quarterly Results & annual results and has been maintaining a healthy dividend payout of 80.8 per cent.
The stock has an ROE of 21.3 per cent and an ROCE of 30 per cent. The stock gave multibagger returns of 170 per cent in just 2 years whereas BSE Sensex Index is up by 31 per cent. Investors should keep a close eye on this civil construction stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.
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