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RITES hits all-time high on healthy outlook; stock climbs 15% in 3 days

The stock of state-owned engineering, designing & construction company traded higher for the third straight day, surging 15 per cent, during the period

Buzzing stocks | Rites Ltd | engineering

SI Reporter  |  Mumbai 

(Photo: Official website
(Photo: Official website

Shares of RITES hit a record high of Rs 346.15, as they rallied 6 per cent in Monday’s intra-day trade, in an otherwise weak market, on the back of heavy volumes and healthy outlook. The stock of state-owned engineering, designing & construction company traded higher for the third straight day, surging 15 per cent, during the period.

The stock surpassed its previous high of Rs 330.55, that it had touched on September 29, 2022. The average trading volumes on the counter doubled as around 1.3 million equity shares changed hands on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.81 per cent at 56,964 points at 10:20 AM.

Besides, in the past three months, the stock zoomed 47 per cent, as compared to 8 per cent rise in the benchmark index.

RITES is engaged in design, consultancy, and project management for transport infrastructure sector. RITES’ subsidiary - REMC is involved in power management and generation. The company has a mandate to handle the entire power procurement, under open access for Indian Railways, besides handling renewable energy and energy-efficiency projects.

The thrust on fast-paced electrification or doubling of railway lines, road construction, investment in urban mobility and ropeways, private participation in construction and maintenance of highways, ports and airports and unlocking funds through monetisation of non-core assets is expected to create mega transport assets like high-speed railways, dedicated freight corridors, expressways, greenfield/ brownfield airports and ports, metros demonstrating advancement in the transport infrastructure.

“This growth momentum is expected to continue with projects worth approximately Rs 142 trillion identified under the dynamic National Infrastructure Pipeline and the National Rail Plan envisaging railway infrastructure expansion for FY 2029-30 with more than 35 per cent year-on-year (YoY) increase in capital expenditure (capex) with a proposed infrastructure spend of over Rs 10 trillion in the Budget 2022-23,” RITES said in its FY22 annual report.

Also, in several countries where RITES pursues business interests, there is an increased thrust on the expansion and upgrade of infrastructure, including rail and road network, Light Rail System (Metro) and multi-modal transport network, to ensure faster, safer, and timely movement of goods and passengers.

"The company provides opportunities for technical consultancy and export of rolling stock (indigenously developed and customised offerings) to these countries, adding credence to the idea of Atmanirbhar Bharat," the company added.

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First Published: Mon, October 03 2022. 10:46 IST