Navratna PSU Stock, RITES Ltd will be in focus as the company has signed an MoU with another PSU SAIL. This will be the second consecutive order bagged by RITES from October 28-29. RITES has recently delivered bonus shares to its shareholders and is scheduled to pay dividends as well. The company's upcoming dividend has a record date of November 14. Should you buy, sell, or hold RITES stock?
RITES Ltd Share Price:
After market hours of October 29, RITES share price stood at Rs 294.40 apiece, up by 3.06% on BSE, with a market cap of Rs 14,148.98 crore. The stock's 52-week high and low is at Rs 413.08 apiece and Rs 217.68 apiece respectively.
RITES stock's price-to-equity ratio is at 33.44x, while the return on equity is at 16.88%.
RITES MoU With SAIL:
On Tuesday, as per the regulatory filing, the company signed a Memorandum of Understanding (MoU) with SAIL-Bokaro Steel Plant (SAIL-BSL), under the Ministry of Steel, to collaborate for Project Management Consultancy for rail connectivity works involving both existing and new railway tracks across various sites within the Bokaro Steel Plant in Jharkhand.
Under the MoU, RITES will provide comprehensive services, including surveying, engineering, project monitoring, supervision and quality control.
RITES Construction Order:
Earlier this week, on October 28, RITES announced that it emerged as Lowest Bidder (L-1) in tender floated by UP State Bridge Corporation. The project includes Consultancy Services for Construction Supervision of Civil works (CSC) for supervision, Monitoring, Quality Control and Work Zone Safety for Construction of Bridges, Rail Over/Under Bridges, Flyovers and Elevated Roads including approaches in several districts of Uttar Pradesh.
The project is costing at Rs 59.13 Crore excluding GST.
RITES Dividend:
As per the regulatory filing, RITES announced that a meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, 6th November 2024 inter- alia to consider, approve and take on record Standalone and Consolidated Unaudited Financial Results of the Company for the quarter and half year ended on 30th September, 2024.
Also, the meeting may consider payment of the Second Interim Dividend, for the FY 2024-25, if any. For this, RITES said that it fixed Friday, 15th November, 2024 as the Record date for payment of the second Interim Dividend for the FY 2024-25, if declared by the Board.
In 2024 so far, the company delivered up to Rs 12.25 dividend per share to its investors. The latest dividend payout was of Rs 5 per share for which RITES turned ex-dividend in September this year. In FY24, the company delivered dividends of 180% worth Rs 18 per share.
RITES Other Corporate Actions:
RITES turned ex-bonus on September 20, for its bonus issue of 1:1 ratio, meaning, the company allotted 1 free share on existing 1 equity share. The company allotted 24,03,01,887 (Twenty-Four Crore Three Lakh One Thousand Eight Hundred and Eighty-Seven) fully paid-up Bonus Equity Shares of the face value of Rs. 10/- each in the ratio of 1:1.
BUY/SELL RITES:
As per Trendlyne, the consensus recommendation from 4 analysts for Rites Ltd. is HOLD. The 1-year average target price on RITES is of Rs 459.25 apiece, hinting at potentially 56% upside ahead.
RITES is a leading player in the transport consultancy and engineering sector in India, providing a diverse range of services under one roof. RITES is uniquely placed in terms of diversification of services and geographical reach in various sectors such as railways, highways, metros, tunnels, bridges, urban engineering, sustainability & green mobility, airports, ports, ropeways, institutional buildings, inland waterways, etc.
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