RITES Rockets 19%: Mega Order Fuels Rail Rally

22 Jan 2024 , 11:59 AM

After RITES Limited secured a Rs 414-crore Project Management Consultancy (PMC) contract from IIT-Bhubaneswar, the company’s shares shot up 19% to Rs 656 in afternoon trade on January 20, setting a new 52-week high. For the institute, RITES will build a variety of infrastructure projects.

The transport consultancy and engineering company stated in an exchange filing that ‘the estimated project cost, including the PMC fees, is estimated to be Rs 414 crore, excluding GST.’

The stock was up 20.13% from the previous closing on the NSE at Rs 625, at closing. At 71,423, the Sensex was up 0.33%.

Railway stocks continued their historic run, shooting up to 13% in yesterday’s trade. The surge in equities related to railways occurs a few weeks before to the announcement of the Interim Budget. Analysts anticipate a high allocation to the railways, which the market will be closely monitoring.

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