PSU Dividend: Miniratna Stock Rallies, Emerges L1 Bidder For Indian Railways

Shares of miniratna psu stock, Rites Ltd gained 0.37% in morning trade with current market price trading at 475.50 apiece at 11:29 am. Rites Ltd emerged as the lowest bidder (L-1) in the tender floated by Railway Board. The estimated order value is approximately Rs. 65.4 Crore. The order is pertaining to testing & inspection of Rails as per IRS T-12 2009 for Indian Railways and the time period by the order needs to be executed is 5 years with 1 year extendable.

The broad consideration or size of the order is inspection of 60,00,000 MT of rails (each year around 12,00,000 MT Rails for Indian Railways). The approximate inspection fees to be received in five years is Rs 65.4 crore including taxes.

Current market price of Rites share is Rs 475.50 apiece on BSE at 11:37 am. Its 52-week high price is Rs 509.80 apiece and 52-week low price is Rs 277.00 apiece, respectively. The company has a market capitalisation of Rs 11,426.35 crore.

In last 3-months, Rites shares jumped 28% in last 3-months, 44% in last 6-months, surged 39% year-to-date, rallied 70% in last 1-year, and recorded 86% rally in last 2-years. In last 3-years, Rites shares soared 86% and 88% in last 5-years.

It is interesting to note that Rites Ltd on August 18, 2023 fixed September 8, 2023 as the record date for final dividend, if approved. According to the BSE filing of Rites dated August 18, 2023, "Final Dividend, if approved at the Annual General Meeting, will be paid to those shareholders whose name appear in the Register of Members of the Company and to those shareholders whose name appears in the Statements of beneficial ownership furnished by NSDL and CDSL at the end of business hours on 8th September 2023."

Earlier this year on July 28, 2023, the Board of Directors declared first interim dividend for the Financial Year 2023-24 at the rate of Rs. 3.75 per share (37.5% of paid up share capital) of the company. Further, as intimated earlier vide our letter no. RITES/SECY/NSE, dated 17.07.2023, the record date set for the purpose of payment of first interim dividend for Financial Year 2023-24 is August 07, 2023.

The company has announced 18 dividends since September 11, 2018. In the past 1-year, Rites announced an equity dividend worth 17.75 per share, according to Trendlyne. If the current market price of Rs 452.10 is taken into consideration, it offers a dividend yield of 3.92%.

RITES Limited, a Miniratna (Category-I) 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.

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