RITES Ltd: Navratna Railway stock in focus as company secures work order from NLC India

Shares of RITES Limited, a public sector transport and engineering consultancy is set to gain focus as the company has secured a significant contract order from NLC India Limited for the development of a railway siding at the Machhakata coal mine and the adjacent New Patrapara South coal mine.

The project includes preparing a feasibility study report (FSR), a detailed project report (DPR), detailed engineering (DE), and project management in a turnkey depositary mode on a cost-plus-fee basis. 

The cost of the contract is approximately Rs. 466.55 crores (excluding GST) and is set to be completed within 36 months, from concept to commissioning.

Read Also : Goa Shipyard Limited (GSL) has a vacancy for the position of Director (Finance)

As of December 31, 2024, RITES Limited’s total order book stands at Rs. 7,978 crore. The largest portion comes from the turnkey segment (44.8%), followed by consulting (34.8%). Exports contribute 16.5%, while REMC Limited and Lease segments make up 1.5% and 2.4%, respectively. 

The market capitalization of PSU Stock is at Rs. 9,938.89 crores and the share of the company has reached an intraday high of Rs. 209.25 per equity share, rising nearly around 1.21% from its previous day’s close price of Rs. 206.75. The stock is currently trading at Rs. 206.80 per equity share.  Meanwhile, the dividend yield is at 3.59%.

Read Also : SJVN has signed a power purchase agreement with Datta Power Infra