RITES hits new high; zooms 70% against issue price

(Photo: Official website https://ritesltd.com)
Shares of railways consultancy firm RITES hit a new high of Rs 315 per share on the BSE, rising 10% on the back of heavy volumes. The state-owned firm was trading at its highest level since listing on July 2, 2018. It has rallied 70% against its issue price Rs 185 per share.

The trading volumes on the counter surged more than three-fold with a combined 5.63 million equity shares 2.8% of total equity changed hands on the BSE and NSE.

In past one month, shares of RITES rallied 61% against 4% rise in the S&P BSE Sensex.

RITES is a wholly owned Government Company, a Miniratna (Category – I) Schedule ‘A’ Public Sector Enterprise. It is a leading player in the transport consultancy and engineering sector in India and the only company having diversified services and geographical reach in this field under one roof.

RITES has a strong order book of Rs 55.17 billion as of date on a standalone basis. The company has recently secured a major export order of Rs 5.67 billion for the supply of Broad Gauge passenger air-conditioned and non air-conditioned coaches which are expected to be exported within 27 months of the opening of Letter of Credit.

RITES expected 22% year on year growth in consolidated operational revenue (excluding other income) at Rs 18.35 billion for the financial year 2018-19 (FY19).

The board of directors of the Company is scheduled to meet on August 27, 2018, to consider and approve unaudited financial results for the quarter ended on June 30, 2018 (Q1FY19).