RITES shares surge 7% on $18 mn international order win, snaps 4-day losses

Shares of RITES Ltd climbed 7 per cent in Friday’s trade after the company said it had bagged a major international order worth USD 18 million from South Africa.

On Friday, RITES shares surged as much as 7.1 per cent to hit a day’s high of Rs 270.60 on the BSE, up from Tuesday’s close of Rs 252.50. By 10:20 am, the stock was trading 5.58 per cent higher at Rs 266.60, valuing the company at Rs 12,760 crore. The scrip has nearly erased losses of its four-day losing streak with today’s gain.

In a filing to the stock exchanges, the state-owned engineering consultancy said it has received a letter of award from Talis Logistics, South Africa, for the “supply and commissioning of overhauled in-service Cape Gauge ALCO Diesel Electric Locomotives.”

So far, a total of 13.68 lakh shares had changed hands, generating a turnover of Rs 36.54 crore. The stock is currently 27 per cent above its 52-week low of Rs 192.30, but still trades 28 per cent below its 52-week high of Rs 370.50.

According to the company, delivery under the contract is expected to be completed within six to eight months of receiving the advance payment. The total consideration for the project stands at USD 18 million.

RITES clarified that the transaction does not fall under related party transactions and that neither its promoters nor group companies have any interest in the awarding entity.

On the technical front, the 50-day SMA stands at Rs 261.4 and the 200-day SMA at Rs 257, with the stock trading comfortably above both levels. The RSI at 39.2 and MFI at 57.7 indicate a mid-range momentum, while a 1-year beta of 1.5 points to very high volatility.