RITES shares climb after emerging as lowest bidder for GUDC project

Shares of state-run RITES Ltd rose 2.09 per cent in Tuesday's trade to hit a high of Rs 285. Today's upward move came after the rail PSU emerged as the lowest bidder for a tender floated by Gujarat Urban Development Company (GUDC) Ltd.

"We are pleased to inform you that RITES is the lowest bidder (L-1) in the financial bid of the QCBS tender floated by Gujarat Urban Development Company Ltd for 'Appointment of TPI agency for WSS/UGD/STP projects under Amrut 2.0/SJMMSVY under GUDC for ULBs of Gujarat'. The order is subject to award after the due process of scrutiny and overall evaluation (technical and financial) by Gujarat Urban Development Company Ltd as per the requisite requirements mentioned in the tender documents. The estimated value of the bid is Rs 28.50 crore excluding GST," RITES stated in a BSE filing. The project has to be completed within 60 months from the date of the Letter of Award (LoA).

Technically, the scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 63.22. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the company's stock has a price-to-earnings (P/E) ratio of 36.66 against a price-to-book (P/B) value of 5.46. Earnings per share (EPS) stood at 7.68 with a return on equity (RoE) of 14.87. According to Trendlyne data, RITES has a one-year beta of 1.5, indicating high volatility.

Around 49,000 shares were last seen changing hands today. The figure was lower than the two-week average volume of 1.98 lakh shares. Turnover on the counter came at Rs 1.38 crore, commanding a market capitalisation (m-cap) of Rs 13,531.40 crore.

RITES, formerly known as Rail India Technical and Economic Service Ltd, is a leading player in the transport consultancy and engineering sector in India. The government held a 72.20 per cent stake in the PSU.