RITES shares jump 5% today amid heavy volumes; here's why

Engineering consultancy firm RITES shares rose sharply in Monday's trade. The stock surged 4.56 per cent to hit a day high price of Rs 544 over its previous close of Rs 520.30. Today's upward move in the share price came after the navratna PSU stated that it has secured 'Silver Shield' under the 'Infrastructure and Construction Sector' category at the ICAI Awards for Excellence in financial reporting for the financial year 2022-23 (FY23).

Also, RITES' subsidiary REMC Ltd, which is in business of power generation and management, has been awarded 'Plaque' under the 'Service Sector' (other than Financial Services Sector) category, it mentioned.

At today's high price of Rs 544, the stock was down 6.76 per cent from its one-year high price of Rs 583.45, a level seen on September 11, 2023. That said, it has gained 74.58 per cent from ist 52-week low price of Rs 311.60, hit on February 22 last year.

On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 66.09. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 25.92 against a price-to-book (P/B) value of 5.03. The scrip has a one-year beta of 0.3, indicating low volatility.

On BSE, around 1.11 lakh shares were last seen changing hands today. The figure was higher than the two-week average 90,000 shares. Turnover on the counter stood at Rs 5.98 crore, commanding a market capitalisation (m-cap) of Rs 12,919.83 crore. There were 4,36,865 buy orders against sell orders of 45,703 shares.

RITES is a leading player in the transport consultancy and engineering sector in India. It has diversified services and geographical reach. The company has undertaken projects in more than 55 countries in Asia, Africa, Latin America, South America, and Middle East region.

Separately, a majority of railway counters witnessed huge gains after it was reported that Budget allocation for the sector could see a record rise.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

 

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