Rs 8,877 Crore Order Book: Civil Construction company Secures Rs 28.5 Crore Contract from Gujarat Urban Development

Despite a one-year return of -21.82 per cent, the stock has delivered a strong 138.47 per cent return over a three-year period.

RITES Limited, a leading public sector enterprise in the transport consultancy and engineering sector, has announced the receipt of a significant contract worth Rs 28.50 crore. The order has been awarded by the Gujarat Urban Development Company Limited and pertains to the appointment of a Third-Party Inspection (TPI) agency. This agency will oversee various urban infrastructure projects under the Amrut 2.0 and SJMMSVY schemes for Urban Local Bodies across Gujarat. The execution period of the contract spans 60 months, further strengthening RITES’ domestic order book and operational visibility.

This multi-crore deal comes at a time when the company continues to focus on expanding both its domestic and international footprints. Known as the exclusive export arm of Indian Railways for rolling stock, RITES has maintained a diversified portfolio across consultancy, turnkey projects, exports, and leasing. The company's growing engagement in domestic infrastructure projects reinforces investor confidence, even as it aims for a 20 per cent revenue growth target for FY26.

RITES Limited was incorporated in 1974 and has established itself as a prominent Mid-Cap player in the transport consultancy space. As of the first nine months of FY25, the consultancy segment contributed 47 per cent to total revenue, though it saw an 8 per cent year-on-year decline. Turnkey projects formed 32 per cent of the revenue, also with an 8 per cent drop, while exports accounted for 15 per cent. The leasing business, however, posted an 11 per cent year-on-year growth. Around 92 per cent of the company's total revenue in FY24 came from within India, indicating a strong domestic presence supported by an order book valued at Rs 7,978 crore.

Despite a one-year return of -21.82 per cent, the stock has delivered a strong 138.47 per cent return over a three-year period. The stock has a 52-week high of Rs 398.50 per share & a 52-week low of Rs 192.30 per share and has been maintaining a healthy dividend pay-out of 98 per cent. The company has a market cap of over Rs 13,000 crore and as of March 31, 2025, its order book stands at Rs 8,877 crore. The stock has an ROE of 15 per cent and an ROCE of 21 per cent. The stock is up by 48 per cent from its 52-week low of Rs 192.30 per share.

With its strategic focus on boosting international business, robust order pipeline, and involvement in key government initiatives like Amrut 2.0, RITES continues to play an important role in India’s infrastructure development landscape.

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