RITES Share Price Soars Over 7% After Securing Two Major Orders

Market Performance

RITES share price witnessed a sharp surge of 7.43%, reaching ₹299.95 per share on the BSE during early trade on Wednesday.

• At 9:40 AM, RITES shares were up by 6.55%, trading at ₹297.50 per share on the BSE.
• In the last month, RITES' share price gained 5%.
• Over three months, it has rallied 27%.
• On a year-to-date (YTD) basis, the stock remains flat.
• However, RITES shares have recorded a 120% return in the last five years.
• The stock has declined by 16% over the past year.

Main News

The rally in RITES' share price was fueled by the company's announcement of securing two significant contracts:

1. African Rail Company Purchase Order

• Purpose: Supply of two fully overhauled ALCO locomotives.
• Deployment: Zimbabwe, Mozambique, and Botswana.
• Order Value: $3.6 million.
• Execution Timeline: 9 months.
• Scope: Includes supply and commissioning of Cape Gauge Diesel Electric Locomotives equipped with:
  • New Cape Gauge Bogies
  • Traction Motors
  • Air Brake Systems
  • Control System
  • Warranty support by the RITES technical team

2. Tumakuru Station Redevelopment Contract

• Client: South Western Railway.
• JV Partner: Aryan JV.
• Work Scope:
  • Redevelopment of Tumakuru Railway Station
  • Civil Infrastructure
  • Signaling and Telecommunication
  • Electrical General Services
• Contract Value: ₹37.81 Crore (excluding GST).
• Execution Timeframe: 540 days from the appointed start date.

Company Details

RITES Ltd is a Public Sector Undertaking under the Ministry of Railways. It provides engineering consultancy, infrastructure development, and related services primarily in the railway sector.

The company has established its global footprint by engaging in cross-border contracts, especially in African markets. The current order from African Rail Company underlines its international project capabilities.

Summary of the Article

The significant jump in RITES' share price is attributed to two major orders:

• A $3.6 million international locomotive supply project from African Rail Company.
• A ₹37.81 Crore redevelopment contract from South Western Railway in India.

These developments highlight RITES's expanding project portfolio across both domestic and global markets. With solid execution timelines and diversified project scopes, investor sentiment has responded positively, boosting the stock's performance.