RITES soars 11% on over 10-fold jump in trading volume; wins infra project

The average trading volumes on the RITES counter jumped over 10-fold with a combined 28.02 million shares, representing 5.8% of total equity changed hands on the NSE and BSE till 10:30 AM on Wednesday

RITES share price movement

 

Share price of RITES moved higher by 11 per cent to ₹227.70 on the BSE in Wednesday’s intra-day deal after the company said it secured ₹175 crore project management consultancy (PMC) project from Babasaheb Bhimrao Ambedkar University (BBAU) for university infrastructure development.

 

At 10:30 AM, RITES traded 10 per cent higher at ₹225.90, as compared to 0.55 per cent rise in the BSE Sensex.  The average trading volume at the counter jumped an over 10-fold with a combined 28.02 million equity shares 5.8 per cent of total equity of the company changing hands on the NSE and BSE.

 

 

RITES secures ₹175 crore infrastructure project

 

RITES informed stock exchanges that it received work of Project Management Consultancy (PMC) services for planning, design and development of infrastructural facilities and other related works in campus of Babasaheb Bhimrao Ambedkar University (BBAU) on cost plus PMC Fee basis.

 

Total project cost is ₹175.41 crore excluding GST (including RITES Fees) approximately, the company said. The project is to be executed within 30 months for initial work or till the completion of allotted work whichever is later from the date of signing of agreement.  Check - TOP GAINERS NSE | TOP LOSERS NSE 

RITES overview, order book, outlook

 

RITES is a Navratna Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The company has undertaken projects in over 55 countries in Asia, Africa, Latin America, South America, and Middle East region.

 

The company secured more than 120 orders (including extension of works) worth more than ₹958 crore in January to March 2026 quarter (Q4FY26), thereby reaching an all-time high order book of ₹9,416 crore as on March 31, 2026. Total unexecuted order book is proposed to be executed in next 2-3 years which provides revenue visibility over the medium term.

 

While announcing the Q4 results on May 19, 2026, the management said, “With the year of business re-engineering and the subsequent year of consolidation, leading to FY25-26 as the year of growth, FY26-27 will be aimed to be the year of disruptive growth across all our streams of business.”

 

RITES - Infomerics Valuation and Rating rationale

 

Infomerics Valuation and Rating Limited (IVR) reaffirmed long-term rating to IVR AAA with a Stable outlook and short-term rating to IVR A1+ for the bank loan facilities of RITES.

 

By virtue of being a public sector undertaking, RITES established business relationships with several central and state government ministries, departments, corporations and public sector undertakings (PSU) which helps it in getting projects on nomination basis. RITES is also the only export arm of Indian Railways for providing rolling stock overseas.

 

Furthermore, RITES undertakes projects both domestically and abroad; and its domestic operations contributed around 83.15 per cent to the revenue and remaining 16.85 per cent from export market. The company is likely to benefit from the diversification in its revenue profile over the medium term, according to IVR.

 

Out of total tenders around 63 per cent are based on competitive bidding and the remaining 37 per cent on a nomination basis. IVR believes RITES will continue to benefit from its long-standing relationships with central and state government entities and PSUs in securing work orders.

 

Several decades of operating in consultancy and engineering in transport infrastructure and related technologies and its parentage provides RITES with substantial technical credentials, which makes it better placed for qualifying for future bids in domestic and international market, IVR said.  ================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.