RITES Dividend of Rs 1.75: 15th November Record Date; BUY/SELL Navratna PSU Stock?

The Ministry of Railways administers RITES Limited, a Navratna and Schedule 'A' Central Public Sector Enterprise that was established on April 26, 1974. RITES is a prominent participant in India's transportation engineering and consulting industry, offering a wide variety of services. In more than 55 countries in the Middle East, Asia, Africa, and Latin America, RITES has become the go-to option for customers. The firm provides rolling stock, such as locomotives, carriages, trainsets, etc., and is Indian Railways' export division.

RITES Dividend

The Board of Directors considered and approved "Declaration of 2nd (Second) interim dividend for the Financial Year 2024-25 at the rate of Rs 1.75 per share (17.50 % of paid-up share capital) of the Company. Further, the record date set for the purpose of payment of 2nd (Second) interim dividend for Financial Year 2024-25 is Friday, 15th November, 2024," said the company in a stock exchange filing.

RITES Financials

According to the September quarter figures released by state-run RITES Ltd., the company's net profit dropped by 25% to Rs 82.5 crore. In the same period last year, RITES declared a net profit of Rs 110.2 crore. The revenue for the quarter decreased by 7.1% to Rs 541 crore from Rs 582.4 crore in Q2FY24. In addition, RITES' EBITDA (earnings before interest, tax, depreciation, and amortisation) plunged 23% year over year to Rs 106.4 crore from Rs 138 crore in the year-ago quarter. The EBITDA margin for Q2FY25 decreased to 19.7% from 23.6% in Q2FY24.

RITES Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "The daily chart of RITES indicates a notable downtrend, with a series of lower highs and lower lows. The price recently faced rejection around Rs 298, close to the 20-day EMA (Exponential Moving Average), which is acting as a strong resistance zone. RITES is still trading below its major moving averages: the 20-day EMA, 50-day EMA and the 100-day EMA. Being below these levels usually signals a bearish trend, but if the stock closes above them, it might show the beginning of a turnaround."

"A close above the 20-day EMA would be a positive sign, and crossing the 50-day EMA would further strengthen this. However, if it stays below these points, the stock may struggle to go higher. The recent low around Rs 271 is acting as a support level, where some buyers are stepping in. If RITES falls below this support, it could continue its downtrend. But if it breaks above the resistance at the 20-day EMAs, it might move toward Rs 315, which would be a stronger recovery sign. A suggested stop loss (SL) could be placed at Rs 271 to limit downside risk, while the target is set at Rs 315, aligning with the resistance level near the 50-day EMA," the analyst commented.

Disclaimer

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