Navratna Stock: PSU Giant Declares 3rd Interim Dividend, Record Date On Feb 1; Bet?

With a wide range of services and a broad geographic reach, RITES Limited, a Navratna Public Sector Enterprise, is a major force in India's transport engineering and consultancy sector. With over fifty years of expertise, the organisation has worked on projects in more than fifty-five countries in the Middle East, Asia, Africa, Latin America, and South America. With a market value of Rs 12,428.41 Cr, RITES Ltd.'s shares closed Thursday 2.36% higher at Rs 258.60.

RITES Dividend

The Board of Directors considered and approved "Declaration of 3rd (Third) interim dividend for the Financial Year 2024-25 at the rate of Rs 1.90 per share (19.00 % of paid-up share capital) of the Company. Further, the record date set for the purpose of payment of 3rd (third) interim dividend for Financial Year 2024-25 is Saturday, February 01, 2025," said RITES in a stock exchange filing.

RITES Financials

In Q3FY25, RITES operating revenue (consolidated)was Rs 576 crore, a 15.7% drop from Q3FY24's Rs 683 crore. Compared to Rs 700 crore in Q3FY24, the total revenue is Rs 614 crore in the quarter under review. With margins of 17.8% and 21.3%, respectively, EBITDA and PAT were Rs 109 crore and Rs 123 crore.

Its operating revenue for Q3FY25 was Rs 545 crore, compared to Rs 653 crore for Q3FY24. Compared to Rs 678 crore in Q3FY24, the total standalone revenue is Rs 592 crore. With margins of 16.6% and 16.1%, respectively, EBITDA and PAT are Rs 90 crore and Rs 95 crore as opposed to Rs 144 crore and Rs 119 crore in Q3FY24. The company achieved the highest-ever order book of Rs 7978 crore as of December 31st, 2024, by securing over 110 orders worth over Rs 1933 crore in Q3FY25.

Mr. Rahul Mithal, Chairman and Managing Director, RITES Limited, said, "This quarter's performance reflects our being able to achieve our targeted objective of making steady progress sequentially, improving in all the parameters."

Mr. Mithal said, "Securing orders of more than Rs 1900 crore in just one quarter, which is nearly equal to the orders received in the entire FY24, underscores our strategy to aggressively march ahead, leveraging our multisectoral strength and maintaining our USP of being a '1 order a day' company."

RITES Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "RITES is currently trading at Rs 257.4 and has formed a hammer candlestick pattern on the weekly chart, signaling a potential bullish reversal. The stock has reversed from its demand zone and is consolidating near a key support level, indicating accumulation by buyers. Increased trading volume further reinforces growing buying interest and supports the possibility of continued upward momentum."

"Technical indicators align with this outlook. The Relative Strength Index (RSI) is at 38.6, trending upwards and indicating improving strength. Additionally, the Stochastic RSI has shown a positive crossover, further confirming the potential for a breakout," the analyst added.

"A breakout above Rs 260 could trigger a rally toward the immediate targets of Rs 290 and Rs 310. On the downside, Rs 245 serves as strong support, providing a favorable buying opportunity for investors. To minimize risks, a stop-loss at Rs 235 is recommended to safeguard against unexpected reversals," Mandar Bhojane further commented.

Disclaimer

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