RITES shares jump nearly 3% after securing Rs 454-crore order from Karnataka Mining Corporation

RITES Limited saw its stock surge nearly 3 per cent on Wednesday after the company secured a major contract worth Rs 454 crore from the Karnataka Mining Environment Restoration Corporation (KMERC).

This contract, focused on constructing railway infrastructure in Ballari district, has been a key driver behind the stock’s rise, reflecting investor confidence in the company’s expanding project portfolio.

Initially awarded on a project management consultancy (PMC) basis, the new order has now been converted into a turnkey assignment, signalling RITES’ growing role in large-scale infrastructure development. The project is expected to be completed within 30 months.

This news comes at a crucial time for RITES, which recently reported a 24.4% decline in net profit for Q1FY25.

Despite these challenges, the company’s stock has gained momentum, bolstered by its continued success in securing high-value contracts and maintaining a strong presence in the transport consultancy sector.

By 10:22 AM, RITES shares were trading at Rs 294.65, up 0.84%. The company, with a market cap of Rs 14,088.90 crore, has a 52-week high of Rs 413.08.