RITES share price jumped over 5% in early trade on Friday after the company announced the receipt of a Letter of Acceptance (LoA) for a project worth ₹27.96 crore. The PSU railway stock rallied as much as 5.6% to ₹224.80 apiece on the BSE.
State-run RITES said it received an LoA from South Central Railway for a project worth ₹27.96 crore, excluding GST.
“…RITES has received Letter of Acceptance for Carrying out Final Location Survey involving Preparation of DPR, Final Alignment Design, Traffic Survey Report, ROR calculations, Detailed Estimate and Preparation of EPC documents for High Speed Elevated Rail Corridor between Hyderabad- Benguluru and Hyderabad-Chennai using Modern Survey Techniques e.g. Airborne or Terrestrial LIDAR from South Central Railway and formal agreement shall be executed in due course,” RITES said in a regulatory filing on March 6.
The time period by which the order or contract is to be executed is 8 months, it added.
RITES’ order book as on 31 December 2024 was highest at ₹7,978 crore, up from ₹5,690 crore in December 2023. The railway PSU has 700 ongoing projects including strategic projects for the government.
RITES Stock Price Trend
RITES share price has fallen 4.5% in one month, but the railway stock is down 25% on a year-to-date (YTD) basis. Over the past six months, RITES stock price has fallen 33%, and in the past one year, the PSU stock has plunged 40%.
However, RITES shares have rallied 26% in two years and delivered decent returns of 81% in three years.
At 10:00 AM, RITES shares were trading 3.67% higher at ₹220.60 apiece on the BSE, commanding a market capitalisation of over ₹10,602 crore.
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