Navratna PSU Inks MoU With Etihad Rail, Buy For Fresh TP Of Rs 334, Shares Rally 7%

Mid cap Navratna PSU RITES Ltd shares zoomed 7% in early morning trade on BSE today. Current market price of RITES Ltd shares on BSE is Rs 321.65 per share. The rally in RITES Ltd shares arrived after report surfaced that the Navratna PSU signed an Memorandum of Understanding (MoU) with Etihad Railways for rail infra works in UAE. Earlier on October 7, the firm bagged an order worth Rs 5.40 million from Ntokoto Rail Holdings Pty. Ltd. that the PSU has to execute in 6-months. Previously, Board of RITES had recommended 1:1 bonus issue on July 31 and dividend as well of Rs 5 per share on May 28, 2024. Rites shares slipped 14% in last 2-weeks and gained over 27% in last 1-year. LIC stake in Rites stood at 6.27% with 30,137,040 shares of the firm.Check details below:

RITES Ltd Inks MoU With Etihad Rail: As per the press release issued on October 8, 2024, "RITES Ltd., a prime transport infrastructure consultancy, today signed a Memorandum of Understanding (MoU) with Etihad Rail, the developer and operator of the UAE National Rail Network, to explore cooperation and synergise strengths in developing railways and related infrastructure services in the UAE and wider region."

The MoU was signed by Mr. Shadi Malak, CEO of Etihad Rail, and Mr. Rahul Mithal, Chairman and Managing Director of RITES Ltd., during the Global Rail Transport Infrastructure Exhibition & Conference held in Abu Dhabi.

The partnership aims at leveraging strengths of both the entities to explore collaborative opportunities for supply/leasing of rolling stock, consultancy and project management for railway projects, services such repairing of rolling stock and operation & maintenance of railway infrastructure to ensure more efficient and modernised rail services in the UAE and across the region.

On the occasion of signing of the MoU, Mr. Rahul Mithal, Chairman & Managing Director, RITES Ltd., said: "This strategic collaboration with Etihad Rail underscores our strengths and commitment to operational excellence & innovation, while contributing to sustainable infrastructure development. It represents a significant advancement in our strategic initiative of 'RITES Videsh', aimed at expanding our global services. Together, the entities are laying the foundation to significantly contribute to enhanced connectivity, setting new benchmarks of excellence in the industry."

Should You Buy RITES Shares After Latest Order And MoU With Etihad Rail? According to A R Ramachandran, Independent SEBI Research Analyst, "Rites is slightly bullish on the Daily charts with strong support at 292. A Daily close above resistance of 304 could lead to a target of 334 in the near term."

RITES Shares Performance: The PSU has a market capitalisation of Rs 14,725.70 crore. The 52-week high price of RITES shares on BSE is Rs 413.08 apiece (as on 27/02/2024) and 52-week low price is Rs 216.33 apiece (as on 26/10/2023), respectively. RITES shares slipped over 21% in last 3-months, gained 22% in 2024 so far, jumped 68% in last 2-years, and offered stellar returns of 117% in last 3-years span.

RITES Dividend History: Rites recommended a total of 23 dividends since September 11, 2018. In last 1-year, Rites announced an equity dividend amounting to Rs 16.75 per share. At the current share price of Rs 321.60, Rites offers a dividend yield of 5.58%. Adjusting for Bonus/Splits the dividend yield is 2.79%, according to Trendlyne.

About RITES Limited: 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 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.