Stock jumps 5% after company signs contract worth $ 111.26 Mil. with Bangladesh Railway

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Stock jumps 5% after company signs contract worth $ 111.26 Mil. with Bangladesh Railway
Credit: © Reuters.

The shares of the engineering and consultancy company gained up to 5 percent after the company signed a contract agreement with Bangladesh Railway worth USD 111.26 million.

With a market capitalization of Rs 17,837.61 crore, the shares of Rites (NS: RITS ) Ltd were trading at Rs 742.30 per share, increasing around 4 percent as compared to the previous closing price of Rs 715.05 apiece.

According to the company filing, Rites Ltd signed a contract agreement for suppling 200 Broad Gauge (BG) passenger carriages to Bangladesh Railways worth Rs $111.26 million (approx. Rs 915 crore) which is funded by European Investment Bank (EIB), through a global competitive bidding process.

Moreover, the company will offer its expertise in design, spare parts support and training. The contract has a supply with commissioning period of 36 months, followed by a warranty period of 24 months.

Furthermore, Rites has a long history of supporting Bangladesh’s infrastructure development. Previously, it delivered 120 BG Passenger Coaches (LHB type), 36 BG locomotives, and 10 Meter Gauge locomotives to Bangladesh Railways, as well as collaborated on other infrastructure projects.

Looking into Rites Ltd’s performance, revenue increased by 1 percent from Rs 677 Crore in Q3FY23 to Rs 683 Crore in Q3FY24. During the same time frame, net profit decreased by 12 percent from Rs 147 crore to Rs 129 crore.

According to the most recent presentations, the company’s total order book as of December 31, 2023, is Rs 5,496 crores, with the “Consultancy” segment accounting for 48%, the “Turnkey” segment accounting for 42%, and the remainder coming from Exports, Leasing, and other sources.

The stock has delivered returns of 55.43 percent in the last six months and a multi-bagger return of 102.01 percent in a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.02 lakh in a year.

RITES Limited, a public-sector business created in 1974, is a market leader in India’s transport consulting and engineering industries, offering a diverse range of services and having a global presence. Apart from Thailand, Malaysia, and Indonesia, the business is the sole export arm of Indian Railways that supplies rolling stock internationally.

Written by:- Abhishek singh


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The post Stock jumps 5% after company signs contract worth $ 111.26 Mil. with Bangladesh Railway appeared first on Trade Brains.

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