Rs 5,529 crore order book & FIIs increase stake: This civil construction company signs MoUs with Meghalaya Industrial Development Corporation Ltd and Oil India Ltd!
The stock is up by 30 per cent in just 1 year and over 80 per cent in 2 years.
RITES Ltd, a prime transport infrastructure consultancy and engineering firm, has entered into a memorandum of understanding (MoU) with Meghalaya Industrial Development Corporation Ltd (MIDC) to develop Multi-Modal Logistics projects in Meghalaya. As part of the MoU, RITES will be offering its expertise as a Project Management Consultant and shall undertake a comprehensive range of services for developing Multi-Modal Logistics projects in Meghalaya. The collaboration is set to improve logistics infrastructure within Meghalaya and enhance trade and transport opportunities, fostering economic development and easing access to the region.
Additionally, the company has entered into a memorandum of understanding (MoU) with Oil India Limited, the second-largest National Oil Company, to develop Duliajan Township, Assam, as a Mini Smart City. As part of the MoU, RITES will undertake an extensive study, review the existing system and prepare a suitable/feasible design to develop Duliajan Township, managed and operated by OIL, as a Mini Smart City. The collaboration, aimed at reviving the Township, entails infrastructure works such as a review of the existing drainage system and design, DPR for integration of the Solid Waste Management System, review of road & traffic network and plan for parking facilities. Besides, RITES will offer its expertise in buildings, horticulture and beautification works.
As of June 30, 2023, the company's order book amounted to Rs 5,702 crore. The company secured more than 70+ orders worth Rs 300+ crore. As of September 2023, FIIs have increased their stake to 3.98 per cent from 3.44 per cent in June 2023.
On Friday, shares of Rites Ltd plunged 1.20 per cent to Rs 476.40 per share with an intraday high of Rs 486.10 and an intraday low of Rs 472. The stock has a 52-week high of Rs 583.45 and a 52-week low of Rs 305.75.
The company reported excellent numbers in both Quarterly Results and annual results. The stock has an ROE of 21.3 per cent and an ROCE of 30 per cent. The stock is up by 30 per cent in just 1 year and over 80 per cent in 2 years. 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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