19% Dividend Recommended: Railway PSU Falls 39.75% From 52-Week High, Buy?

Mid cap Navratna PSU RITES Ltd shares today slipped 2.16% on Bombay Stock Exchange (BSE) as the company today declared decline in revenue and recommended 3^rd interim dividend for the FY 2024-25. Last trading price of RITES shares on BSE is Rs 248.90 per share. The company has a market capitalisation of Rs 11,962.23 crore.

The stock offers a return of equity of 14.87%. RITES shares offered return of 48.29% in last 2-years. Life insurance corporation of India (LIC) has a stake of 5.89% in RITES. If yesterday’s last trading price of Rs 248.90 is taken into consideration, RITES shares declined 39.75% from 52-week high price of Rs 413.08 per share. Check key details below:

RITES Recommends Interim Dividend, Sets Record Date

According to the BSE filing of RITES dated January 28, 2025, “Board of Directors of the Company in its meeting held today i.e. Tuesday, January 28, 2025 has inter-alia approved the following items:

Un-Audited Financial Results (Standalone and Consolidated) of the Company for the quarter and nine months ended on December 31, 2024.
Declaration of 3rd (Third) interim dividend for the Financial Year 2024-25 at the rate of Rs 1.90 per share (19.00 % of paid-up share capital) of the Company. Further, the record date set for the purpose of payment of 3rd (third) interim dividend for Financial Year 2024-25 is Saturday, February 01, 2025.”

RITES Dividend History

Rites recommended a total of 24 dividends since September 11, 2018. In last 1-year, Rites recommended an equity dividend amounting to Rs 14.00 per share. At the current share price of Rs 248.90, Rites shares offer a dividend yield of 5.63%. Adjusting for bonus/stock-splits the dividend yield stood at 3.16%, according to Trendlyne.

RITES Shareholding

FII/FPI REDUCED holdings from 3.20% to 3.34% in December 2024 quarter. Number of FII/FPI investors fell from 151 to 135 in December 2024 quarter. Life insurance corporation of India (LIC) has a stake of 5.89% in RITES.

RITES Q3 Results

The company announced a decline of 15% year-on-year (YoY) in its net profit to Rs 576 crore for the quarter ended December 31, 2024 as against Rs 683 crore reported in the year ago period. Its net profit for the December 2024 quarter declined 15% YoY to Rs 109 crore as against Rs 129 crore in the similar quarter of last year. The company’s earnings per share (EPS) declared at Rs 2.08 for December 2024 quarter from Rs 2.50 declared in the corresponding quarter of last year.

RITES’s EBITDA slipped 30.5% YoY to Rs 117.4 crore and margins narrowed by 440 basis points from 24.8% declared last year.

RITES Shares Performance

The 52-week high price of RITES shares on BSE is Rs 413.08 apiece (as on 27/02/2024) and 52-week low price is Rs 243.35 per share (as on 28/01)2025), respectively. RITES shares fell 27.44% in last 1-year, soared 48.29% in last 2-years, and surged 85.68% in last 3-years.

Should You Buy RITES Shares?

According to A R Ramachandran, SEBI registered Independent research analyst, “Rites is bearish but also oversold on the Daily charts with next support at 238. Investors should buy only if Daily close is above resistance of 259 for a target of 298 in the near term.”

About RITES Limited

RITES Limited, a Navratna and Schedule ‘A’ Central Public Sector Enterprise under the Ministry of Railways. It came into existence on April 26, 1974. RITES is a multidisciplinary engineering and consultancy organization, providing a comprehensive range of services from concept to commissioning in all facets of transport infrastructure and related technologies, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of A R Ramachandran. Moneydaily.in, the author, and the respective brokerage house will not be held accountable for any losses caused as a result of decisions based on the article. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.