1:1 Bonus, Rs 5 Dividend: Navratna PSU Slips 4.92% After Recommending Bonus Shares, Buy

Mid cap Navratna PSU RITES Ltd shares witnessed a decline of 4.92% after the Board of Directors recommended 1:1 bonus share on July 31, 2024. The day RITES recommended bonus share, the stock was priced Rs 715.15 per share and today the stock's price is Rs 680.00 per share, implying a dip of 4.92%. RITES Ltd shares are all set to trade ex-bonus on September 20, 2024.

The PSU also declared Rs 5.00 per share dividend and ex-dividend date has been fixed as September 20, 2024. RITES shares offered return of 35% so far this year and 125% in last 2-years. The company's market capitalisation stood at Rs 16,348.94 crore. Check details below:

Should You Buy RITES Shares? Anand Rathi has recommended investors to buy RITES shares for a year with a target price of Rs 1000. Meanwhile, A R Ramachandran, Independent SEBI Research Analyst said, "Rites Ltd stock price is slightly bullish on the Daily charts with strong support at 664. A Daily close above resistance of 687 could lead to targets of 729-787 in the near term."

RITES Ltd Bags New Order: As per the regulatory filing of RITES Ltd issued as on September 6, 2024, "we are pleased to inform you that RITES is the lowest bidder (L-1) in the tender floated by UP State Bridge Corporation Limited for Consultancy Services for Construction 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 order is subject to award after the due process of scrutiny / evaluation by the UP State Bridge Corporation Limited as per the requisite requirements mentioned in the tender documents. The estimated value of the bid is Rs. 60.03 Crore plus GST."

RITES Shares Performance: The 52-week high price of RITES shares on BSE is Rs 826.15 apiece (as on 27/02/2024) and 52-week low price is Rs 432.65 apiece (as on 26/10/2023), respectively. RITES shares zoomed 4.41% in last 1-week, fell 0.78% in last 1-month, gained 20% in last 1-year, and rallied 148% in last 2-years. In last 5-years, RITES shares gained 190%.

RITES Bonus Share: The BSE filing of RITES dated Aug 14, 2024 stated, "pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Friday, 20th September, 2024 as the Record Date for the purpose of Bonus Issue.

RITES Dividend In 2024: The exchange filing of RITES Ltd issued as on May 28, 2024 said, "recommended Dividend of Rs. 5.00/- per share (i.e. 50%) on 24,03,01,887 equity shares of face value of Rs. 10 /- each of the Company for the financial year 2023-24, subject to approval of the same by the Shareholders in the ensuing 50th Annual General Meeting of the Company."

About: RITES Limited is a Navratna Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India. It has diversified services and geographical reach. The company has an experience spanning 49 years and undertaken projects in over 55 countries in Asia, Africa, Latin America, South America, and Middle East region.

Disclaimer: The stock has been picked from the brokerage report of Anand Rathi and A R Ramachandran. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.