1:1 Bonus Issue: Navratna PSU RITES To Announce 2nd Interim Dividend On Nov 6; BUY/SELL/HOLD The Railway Stock

Navratna PSU giant, RITES Ltd under the Railway Ministry, is going to be in focus on November 5th and November 6th due to its upcoming second interim dividend and Q2 results announcement. The company is set to announce new dividend rewards after its 1:1 bonus issue distribution. The consensus recommendation on RITES stock is HOLD, however, the average target price hints at strong gains ahead.

RITES Share Price:

After market hours, RITES stock price ended at Rs 290.60 apiece on November 4th, down by 3.90% on BSE with a market cap of around Rs 13,966.35 crore. The return on equity on the stock is 16.88%.

YTD, the stock is up by 16% on BSE so far.

RITES Ltd 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 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 Ltd Bonus Issue:

RITES turned ex-date for bonus issue of 1:1 ratio on September 20, 2024. This simply means that the company issued 1 bonus share against 1 existing bonus share.

BUY/SELL/HOLD RITES Shares:

As per Trendlyne data, the consensus recommendation from 4 analysts for Rites Ltd. is HOLD. EPS is expected to grow by 1.8% in FY25. The 1-year average target price on RITES shares is at Rs 459.25 apiece, hinting at nearly 58% potential upside.

RITES Limited, a Navratna and Schedule 'A' Central Public Sector Enterprise under the Ministry of Railways, incorporated on April 26, 1974, is a multidisciplinary engineering and consultancy organization, providing a comprehensive range of services from concept to commissioning in all facets of transport infrastructure and related technologies.