RITES bags order worth Rs 414 crore; stock ends ~20% higher

20 Jan 2024 , 04:14 PM

RITES Limited shares rose 20% to Rs 656 in afternoon trading on January 20, reaching a new 52-week high after the business secured a Rs 414-crore Project Management Consultancy (PMC) contract from IIT- Bhubaneswar. RITES will develop different infrastructure projects for the institute.

‘The projected project cost, inclusive of PMC fees, is anticipated to amount to Rs 414 crore, excluding GST,’ stated the transport consultancy and engineering company in a filing to the stock exchange.

Railway stocks rose 13% today, continuing their record-breaking run. The surge in railway-related equities comes just weeks before the Interim Budget presentation. Analysts foresee a significant allocation to railways, which the market will closely monitor.

“This interim budget, occurring before the election, will be closely scrutinized as if it were the ultimate budget due to the anticipation of the current government’s return to power. The Government of India has placed a significant emphasis on developing infrastructure, encompassing both digital and physical aspects. We anticipate a continued emphasis on various assets such as roads, airports, ports, and railways,’ explained Mukesh Kochar, National Head of Wealth at AUM Capital.

RITES stock ended 20.13% higher at Rs 625.05 per piece, against the previous close of Rs 520.30 on NSE.

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