Final Dividend of Rs 5, 1:1 Bonus Shares: September 20 Record Date; What’s The Promising Target Price of RITES

RITES Limited was established on April 26, 1974, as a Navratna and Schedule 'A' Central Public Sector Enterprise under the Ministry of Railways. RITES is a prominent entity in the transportation consulting and engineering domain in India, ranking among the top 500 listed firms in the country according to market capitalization. The PSU organization offers services in a number of different industries, including inland waterways, airports, ports, ropeways, institutional buildings, highways, metros, tunnels, bridges, urban engineering, sustainability, and green mobility. Over 55 nations in the regions of Asia, Africa, Latin America, and the Middle East have become established clientele for it.

RITES Upcoming Dividend

"The Board of Directors of the Company during the Financial year 2023-24 has declared final dividend of Rs 120.15 crore i.e. Rs 5.00 per share of Rs 10 each on equity shares, as recommended by the Board of Directors in its meeting held on May 28, 2024, for the year ended on 31.03.2024, if approved by the members at the Annual General Meeting, will be paid subject to deduction of tax at source: (i) To those members holding shares in physical form and whose names appear in the Register of Members of the Company as on Friday, September 20, 2024. (ii) To those members whose names appear in the Statements of beneficial ownership furnished by National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) at the end of business hours on Friday, September 20, 2024," said the PSU company in a report.

RITES Bonus Shares

"The Board of Directors of the Company at its meeting held on July 31, 2024, recommended issue of Bonus Shares in the proportion of 1:1 i.e. 1 (One) equity share of nominal value of Rs 10/- (Rupees Ten Only) each for every 1 (One) equity share of nominal value of Rs 10/- (Rupees Ten Only) each held by Member(s) on the Record Date, by capitalization of a sum not exceeding Rs 240,30,18,870.00 (Rupees Two Hundred Forty Crore Thirty Lakh Eighteen Thousand Eight Hundred and Seventy only)," RITES stated in a note.

"The Record Date for determining the eligibility of the Shareholders to receive the said Bonus Shares is Friday, September 20, 2024," the company has informed stock exchanges.

RITES Latest News

The Ministry of Housing Development's NBCC (India) Ltd., a CPSE, and RITES Ltd. inked a Memorandum of Understanding (MoU) on Wednesday to explore and carry out a wide variety of consultancy, fee-based projects, and EPC contracts from concept to commissioning. From idea to planning, design, cost estimation, tender paperwork, and other pre-construction operations, RITES will provide consulting and project management services in addition to construction coordination. In addition, NBCC will provide its expertise in project execution, including contract management, construction supervision, quality assurance, handing over/commissioning, error liability period, and cost control.

RITES Share Price Target

Hardik Matalia - Derivative Analyst at Choice Broking said, "RITES is currently trading around 665 levels, showing a strong reversal from its long-term (200-day) EMA levels of 641 after a period of consolidation. The recent price action indicates potential upward momentum emerging from the consolidation at lower levels. If the stock continues to move higher, the potential target is 720, with immediate support at 620. The RSI is currently around 47 levels, signalling neutral momentum but showing a rise from oversold levels. This suggests that the stock may gain additional strength if buying pressure persists."

"The price is trading below its medium-term (50-day) EMA, and it is trading near its short-term (20-day) EMA, breaking above which can lead to a potential shift in momentum. In summary, based on technical analysis and current market conditions, RITES offers a promising buying opportunity with a target price of 720. However, it's crucial to implement appropriate risk management strategies, such as setting a stop-loss at 620, to protect against potential downside risks in case of market volatility," the analyst further added.

"Rites stock price is sideways to bullish on the Daily charts with strong support at 646. A Daily close above resistance of 687 could lead to a target of 786 in the near term," said A R Ramachandran, Independent Research Analyst.

Disclaimer

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