RITES & Hindustan Copper Sign MoU: Stock Jumps 56% From 52-Wk Low, Axis Securities Says ‘Buy' with Rs 305 TP

RITES Limited, a Navratna PSU under the Ministry of Railways, has signed a Memorandum of Understanding (MoU) with Hindustan Copper Limited (HCL), a Central Public Sector Enterprise under the Ministry of Mines. The MoU is expected to build a strong and sustainable supply chain of critical minerals and metals, both within India and internationally.

Strategic Partnership for Mineral Supply Chain

As per the stock exchange filing, RITES will provide comprehensive consultancy and logistics support to HCL, including end-to-end project planning, transport infrastructure development, multimodal logistics planning, Rolling stock support

"This strategic partnership aims to build an integrated, self-reliant mineral value chain that supports India's critical mineral security, fosters sustainable growth, and strengthens the nation's economic resilience," RITES stated in the filing.

Rites Share Price Movements Lately

RITES shares fell 2.81% on Friday, June 6th, closing at Rs. 300.50 apiece on the NSE. However, last week cumulatively, Rites shares surged 8.5% and have jumped 34% in 30 days. The company's market capitalisation stands at Rs. 14,442.14 crore as of June 6, 2025.

Hindustan Copper Limited Share Price

At the end of Friday, trade share of Hindustan Copper closed at 0.63% higher at Rs. 255.30. The stocks have jumped 20% in the past month but have slipped 25% in the last year. However, Hindustan Copper shares are currently down 27% from their 52-week high level.

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Should you buy RItes shares? Target Price & Outlook

"RITES secured over 150 orders worth Rs. 1,418 crore in Q4 Q4FY25, taking its total order book to Rs. 8,877 crore, enough to provide revenue visibility for the next 2 to 2.5 years. Notably, consultancy services, which yield higher margins, contribute to 34% of the total order book, and both domestic and international consultancy segments are projected to grow steadily." The report mentioned

"The overall sector view remains positive, and RITES management is confident of achieving at least 20% revenue growth with ~22% operating margins in FY26. Axis Securities has assigned a target price of ₹285 per share, down slightly from the earlier TP of ₹305. Given the company's resilient fundamentals and long-term growth levers, the broking maintains its BUY recommendation." as per the report

RITES Q4 Results & Dividend Details

RITES Ltd released its Q4 results for the March 2025 quarter on May 14th, where the company posted a net profit of Rs.141 crore, marking a 3.4% increase compared to the same quarter last year. However, its revenue slipped by 4.3% to Rs 615 crore, down from Rs 643 crore in Q4 Q4FY24.

On the operational front, RITES delivered strong numbers. EBITDA rose 5.4% year-on-year to Rs 185.5 crore, while the EBITDA margin expanded sharply by 564 basis points, reaching 30%.

In addition, RITES declared a final dividend of Rs.2.65 per share for FY25. The record date for the dividend has not been announced yet and will be declared soon.

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