RITES shares surge 4% after securing Rs 70 crore SAIL order
RITES shares jump four per cent as new Rs 70 crore SAIL order boosts outlook.
Shares of RITES Limited climbed 4 per cent on January 3, reaching Rs 304.75, after the Navratna company announced securing a significant order from Steel Authority of India’s Bhilai Steel Plant. The work order, worth Rs 69.78 crore, involves repairing 43 WDS6 locomotives over a period of three years. The company’s market capitalization rose to Rs 14,502 crore following the development.
Technical indicators signal short-term strength
RITES shares showed resilience, trading higher than their 5-day, 10-day, 20-day, 30-day, and 50-day moving averages, indicating near-term bullish momentum. However, the stock remains below its 100-day, 150-day, and 200-day averages, highlighting the scope for further gains. The relative strength index (RSI) at 52.6 suggests the stock is trading in a neutral zone, neither overbought nor oversold.
Collaborations to boost future growth
Adding to its positive outlook, RITES subsidiary REMC Limited signed a memorandum of understanding (MoU) with Indian Railway Finance Corporation (IRFC). This collaboration aims to explore financing opportunities for power projects catering to Indian Railways. The projects span thermal, nuclear, and renewable energy, creating potential revenue streams for RITES.
The MoU also includes advisory services, project management support, and consultancy for developing captive power models in partnership with Indian Railways and other entities. This strategic partnership aligns with the government’s push toward energy efficiency in public transportation.
A robust foundation in engineering services
RITES continues to demonstrate its leadership in engineering and transport infrastructure consultancy. The company’s expertise spans rolling stock maintenance, airport construction, industrial engineering, and inspection services, making it a critical player in India’s infrastructure development.
What lies ahead?
With a one-year beta of 1.5, RITES shares are highly volatile but remain attractive due to the company’s consistent order book growth and strategic initiatives. Analysts expect continued momentum, driven by government-backed projects and strong execution capabilities.
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