Budget 2020 My Pick: RITES share can give you windfall returns, likely to benefit from budget
RITES is completely free from debt. The balance sheet reflects Rs 2000 cr cash reserves. The stock valuations of RITES are quite cheap
Budget 2020 is set to be unveiled in two weeks and market experts are already working hard to identify stocks that investors can put their money on on the strength of their research about potential to benefit from announcements. Experts have started pre-budget analysis of the Budget 2020 and have suggested investors where to put their money. According to experts, RITES share will be directly impacted by the Budget 2020 announcement and will give you high returns according to the experts.
Yes, one stock that is likely to do well post-budget announcements is RITES. Avinash Gorakshakar of Precision Investments Services recommends that investors should include RITES shares in their portfolio.
Rites limited is a Miniratna company. This is an Indian Railways infra company. Its business is seeing continuous growth. This is a subsidiary of the Indian government which has been established under the Indian Railways in 1974. This company is known for its technology and financial contributions and is also into engineering consultations.
Strong order book
Gorakshakar says that RITES' order books are robust with Rs 6000 cr worth projects under its belt. Its strong order book is the testimony to the fact that the company is likely to have good revenues, going forward.
Debt-free company
RITES is completely debt-free. Its balance sheet has cash reserves over Rs 2000 cr. valuation is pretty cheap. This company gives a dividend yield of up to 2%. The company has given an interim dividend of Rs 6.
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Buy RITES shares
RITES stock may reach between Rs 370 and 375 in the next 6-12 months. The current market price is around Rs 313.
May benefit from Budget 2020
Experts have told Zee Business that Centre may make some big-ticket announcements in Budget 2020 on Indian Railways. The announcements will directly benefit RITES stocks. Finance Minister Nirmala Sitharaman will be presenting the budget on 1 February.
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