Navratna PSU RITES Ltd shares will be in focus on Monday after the company bagged Rs 466.55 crore order from NLC India Limited on Friday. Last trading price of RITES on BSE stood at Rs 206.75 per share with intraday fall of 3.30%. Despite the decline in shares, the PSU hit fresh 52-week high today. The stock touched 52-week high for the 5th time since February 7, 2025.
Meanwhile, in last 1-year, RITES shares nosedived 44.62%. Rites shares plummeted 49.95% from 52-week high price of 413.08 per share if the last trading price of Rs 206.75 is taken into consideration. It is worth noting that LIC has 5.89% stake in RITES. Check more details below:
RITES Bags Order For 2nd Consecutive Day
According to the exchange filing of the PSU issued post market hours, “we are pleased to inform you that RITES has been awarded work for “Preparation of Feasibility Study Report (FSR), Detailed Project Report (DPR), Detail Engineering (DE) & Project Management as Turnkey Depositary mode on cost plus fees basis’ for construction and commissioning of Railway Siding at Machhakata (Revised) coal Mine and adjacent New Patrapara South coal Mine” from NLC India Limited.”
The estimated cost of Rs. 466.55 crores excluding GST (including PMC Fee). The time period by which the order must be executed is 36 months from concept to commissioning, added the exchange filing.
MoU With NUPPL
Earlier on Feb 13, 2025, RITES inked a Memorandum of Understanding (MoU) with Neyveli Uttar Pradesh Power Limited (NUPPL) for “Comprehensive Operation & Maintenance of NUPPL/GTPP Railway Siding”.” The timer period by which the order must be completed is 5-years. The size of the order is Rs 120.13 crore excluding GST and Escalation.
Why RITES Shares Declined Steeply In Last Few Months?
RITES shares recorded decline of 49.95% from its 52-week high price of Rs 413.08 per share. There are several factors that caused sharp dip in the PSU shares. RITES shares fell sharply since the last 2-weeks after the company declared a fall in its profit margins and revenue on January 28, 2025 for the quarter ended December 2024.
RITES declared a dip of 15.7% YoY in its consolidated operating revenue (excluding other income) at Rs 576 crore for Q3FY25 as compared to Rs 683 crore in Q3FY24. The company’s total revenue stood at Rs 614 crore for Q3FY25 as compared to Rs 700 crore in Q3FY24. The company’s EBITDA and PAT declared at Rs 123 crore and 109 crore with margins at 21.3% and 17.8%, respectively. Its 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.
Meanwhile, Rites blended Ebitda margin has been witnessing a dip as well, reflecting a squeeze on profitability as a result of soaring competition in the market. The ongoing market sentiment towards railway stocks after last year’s and latest budget also contributed to the downward trend.
RITES Dividend In 2025
The company on January 28, 2025 recommended a 3rd interim dividend of Rs 1.90 per share (19.00 % of paid-up share capital). Meanwhile, shares traded ex-dividend on February 1, 2025.
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 surged 23.40% in last 2-years and rose 61.71% in last 3-years.
RITES Shareholding
FII/FPI decreased holdings from 3.20% to 3.34% for December 2024 quarter. Number of FII/FPI investors dipped from 151 to 135 for December 2024 quarter.
Disclaimer: The story highlights order win and should not be considered as investment awdvice by the Moneydaily.in or the Author. Moneydaily.in and the author will not be held responsible for any losses caused as a result of decisions based on the above information. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.
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