RITES shares rise 4% in early trade: Two triggers behind the rally

Shares of RITES Ltd gained 4% amid weak sentiment in the broader market today after the Navratna company said it secured major orders from Steel Authority of India - Bhilai Steel Plant. RITES stock rallied 4% to Rs 304.75 against the previous close of Rs 292.95. Market capitalization of the company climbed to Rs 14,502 crore. RITES shares have a one-year beta of 1.5, indicating high volatility during the period. 

In terms of technicals, the relative strength index (RSI) of RITES stands at 52.6, signaling it's trading neither in the overbought nor in the oversold zone. RITES shares are trading lower than the 100 day, 150 day, 200 day but higher than the 5 day, 10 day, 20 day, 30 day and 50 day moving averages.

The company won a work order worth Rs 69.78 crore from SAIL- Bhilai Steel Plant for R3Y/ R6Y Repair of WDS6 Locomotives (43 Nos.) for a period of 3 years.

In another development, the company's arm REMC inked a Memorandum of Understanding (MoU) with Indian Railway Finance Corporation (IRFC) to explore options for financing power projects for supply to the railways.

Under this MoU, both parties will explore opportunities for collaboration across domains, including Transaction Advisory, Project Management services, DPR reviews, and consultancy or advisory services related to financing power projects with backward and forward linkages to the Railways, excluding those awarded by REMC.

The MoU also facilitates the financing of thermal, nuclear, and renewable power projects established under the captive model through joint ventures between Indian Railways and other entities.

RITES Limited, a subsidiary of Indian Railways, provides engineering services. The company offers transport infrastructure consultancy, railway inspection, rolling stock leasing and maintenance, airport construction management, industrial and electrical engineering, and other related services.