RITES Share Price: Railway PSU Stock Surges After Order Win; Should You Buy, Sell Or Hold?

RITES Share Price Today: Shares of Railway Public Sector Undertaking (PSU), RITES, surged on Wednesday, a day after it announced an order win worth Rs 28.5 crore from the Gujarat Urban Development Company Limited.

Shares of RITES, earlier known as Rail India Technical and Economic Services, were trading 1.4% higher at Rs 279.8 per share on BSE at 10:30 am. The stock had opened higher at Rs 281.90 apiece and then surged by 2.77% to an intraday high mark of Rs 283.5 apiece.

RITES Order Win

The Gujarat Urban Development Company Limited (GUDC) has signed a deal with RITES and has "appointed it as TPI agency for WSS/UGD/STP projects under Amrut 2.0/SJMMSVY under GUDC for ULBs of Gujarat," according to the BSE filing released by RITES on Tuesday.

The domestic project worth over Rs 28.3 crore is scheduled to be completed within a time period of sixty months. "We are pleased to inform you that RITES has received the Letter of Intent from Gujarat Urban Development Company Limited for "Appointment of TPI agency for WSS/UGD/STP projects under Amrut 2.0/SJMMSVY under GUDC for ULBs of Gujarat," said RITES in its BSE filing.

RITES Share Price Trend

RITES shares were trading higher on Wednesday. The stock had closed at Rs 275.85 per share on the BSE on Tuesday. The company scrip had touched a 52-week high mark of Rs 398.50 apiece on 8 July, 2025. Whereas, the stock had dipped to its 52-week low mark of Rs 192.3 per share on 3 March, 2025. RITES stock value has surged by around 13.56% in three months, but has declined by around 5.25% since the beginning of the year 2025. Its stock value has declined by around 19.77% in one year, according to BSE. Its RoE stands at 15.33.

RITES Share Price Recommendation

Indicating a 6% downside in the RITES stock, brokerage Antique has maintained a 'Hold' rating for the stock. Antique has fixed a target price of Rs 259 per share for the stock. Based on RITES' technical analysis, Trendlyne website, has identified the stock as a 'momentum trap', which means that it is among the stocks with poor quality, financials, and technicals ranging from bad to medium score. As per the website, consensu analyst recommendation for RITES omn June 25 is of 'Buy' with a target price of Rs 276 per share.

The government-owned railway enterprise reported a 3.4% increase in its net profit for the quarter to Rs 141 crore during the March quarter.

Despite the rise in profits, RITES experienced a 4.3% decline in revenue, bringing it down to ₹615 crore from ₹643 crore in the same period last year. However, the company reported an increase in Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), which grew by 5.4% year-on-year to ₹185.5 crore.

The company had announced a final dividend of ₹2.65 per share for the financial year 2025. The record date for this dividend is yet to be confirmed. Shareholders will need to approve this dividend at the upcoming 51st Annual General Meeting. Once approved, RITES plans to distribute the dividend within 30 days of declaration.

RITES' EBITDA margin also improved significantly, expanding by 564 basis points from last year to reach 30%. This indicates better operational efficiency despite the drop in revenue. The company's shares are currently trading at ₹242.13, reflecting a 3.87% increase.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.