RITES shares gain on $2.9-million contract win, check details

Shares of RITES Ltd rose nearly 3% in early deals on Tuesday as the PSU major has been awarded a $2.908 million contract by the Ministry of Public Works in Guyana. RITES stock rose nearly 3% to Rs 310.75 on the BSE. Market cap of the firm climbed to Rs 14,545 crore.  

The company will supervise construction for the extension of the East Bank-East Coast Road Project Phase 2, spanning from Eccles to Providence. This project also encompasses additional tasks related to an ongoing assignment. RITES, a Miniratna (Category-I) Schedule 'A' public sector enterprise, is a key player in transport consultancy and engineering in India, boasting diverse services and a global reach.

The project is set to be completed within 18 months, with a subsequent 12-month defects liability period. As of 31 March 2025, the Government of India held a 72.20% stake in RITES, underscoring its significant government backing. This move marks the company's continued expansion into international markets, further solidifying its reputation as a leader in transport consultancy.

RITES has consistently demonstrated its capabilities in managing large-scale infrastructure projects, enhancing its portfolio with this latest international contract. The extension of the East Bank-East Coast Road Project in Guyana adds to its impressive list of global undertakings, positioning the company well for future growth. The successful execution of such projects reinforces India's expertise in international transport infrastructure, with RITES at the forefront. The contract not only strengthens its global presence but also contributes positively to its financial outlook, as evident from the recent stock performance.

RITES reported a 3.4% rise in Q4 profit at Rs 141.3 crore against Rs 136.7 crore profit in the March 2024 quarter. Revenue slipped 4.3% to Rs 615.4 crore in the last quarter against Rs 643 Cr on a YoY basis. 

RITES shares have a one-year beta of 1.4, indicating high volatility during the period. 

In terms of technicals, the relative strength index (RSI) of RITES stands at 67.3, signaling it's trading neither in the overbought nor in the oversold zone. RITES shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day but lower than the 150 day and 200 day moving averages.

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.