Navratna PSU RITES Ltd shares jumped 6.69% on Bombay Stock Exchange after the company informed the exchanges about signing a Memorandum of Understanding (MoU) with the Central Water and Power Research Station (CWPRS) post market hours on February 19, 2025. Current market price of RITES shares on BSE stood at Rs 227.40 per share. The company’s market capitalisation stood at Rs 10,376.24 crore.
Meanwhile, return on equity (ROE) is 14.87%. The PSU shares surged over 1% in last 1-week and slipped 26.76% year-to-date. It is important to note that the PSU is backed by LIC with stake of 5.89%. RITES shares plunged 44.95% from their 52-week high levels of 413.08 per share, if today’s current share price is taken into consideration. Check more details below:
RITES Inks MoU with CWPRS, Shares Zoom
According to the regulatory filing of the company dated Feb 19, 2025, “RITES Ltd., a prime transport infrastructure consultancy, has signed a Memorandum of Understanding (MoU) with the Central Water and Power Research Station (CWPRS), an R&D organization as a subordinate office of the Department of Water Resources, River Development and Ganga Rejuvenation, Ministry of Jal Shakti. This collaboration entails works related to engineering consultancy services, and research & development projects in water resources, marine, and inland waterways infrastructure.”
This strategic partnership will combine RITES’ expertise in transport infrastructure consultancy and project management with CWPRS’ advanced research capabilities in water resources to drive innovative solutions in marine, coastal, inland waterways, and hydropower infrastructure. It aims at enhancing project efficiency and sustainability through joint engineering consultancy, research, and development initiatives, added the exchange filing.
RITES Shares Performance
The 52-week high price of Navratna RITES stood at Rs 413.08 per share (as on 27/02/2024) and 52-week low price is Rs 200.35 per share (as on 17/02/2025), respectively. RITES shares nosedived 34.67% in last 6-months, slid 42.01% in last 1-year, and surged 30.98% in last 2-years. In last 3-years, the Navratna stock zoomed 72.5%.
Why RITES Shares Slipped 44.95% From 52-Week High Value?
RITES shares declined 44.95% from its 52-week high price of Rs 413.08 per share. There are many factors that triggered stee slip in the PSU shares. RITES shares declined 7.76% in past 2-weeks after the company announced a decline in its profit margins and revenue on January 28, 2025 for the quarter ended December 2024. Meanwhile, stock also fell sharply after there was no major announcement by Finance Minister Nirmala Sitharaman in this budget and last year’s budget.
RITES Q3 Results
RITES announced a fall 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 Latest Dividend
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 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.
RITES Bonus Share History
It recommended a total of 2 bonuses since August 8, 2019. It last bonus was declared was in the ratio 1:1 with ex-date fixed as September 20, 2024.
About
RITES Limited is a Navratna Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The company has an experience spanning 50 years and undertaken projects in over 55 countries in Asia, Africa, Latin America, South America, and Middle East region.
Disclaimer: The story highlights MoU 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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