Railway stock trading at discount of 47% received orders worth over ₹1,700 Cr in last 3 months

The shares of a leading player in the transport consultancy and engineering sector in India, providing a diverse range of engineering and consultancy services, surged by around 2.2 percent on BSE to Rs. 225.95 on Friday. 

Stock Performance

With a market capitalisation of Rs. 10,489.2 crores, the shares of RITES Limited closed at Rs. 218.25, down by around 1.4 percent, as against its previous closing price of Rs. 221.25. 

The stock hit its 52-week high at Rs. 413.08 on 27th February 2024, and compared to Friday’s closing price of Rs. 218.25, the stock is trading at a discount of nearly 47 percent. 

The stock has delivered negative returns of nearly 41 percent in the last six months, as well as around 18 percent returns in the last one month. 

Orders in last 3 months

5th November 2024: RITES Consortium emerged as L1 for the “Retrofit Work in RS-1 Trains of DMRC” worth Rs. 36.36 crores.

22nd November 2024: The company secured a Rs. 531.77 crore order for Railway Electrification work from Northeast Frontier Railway.

5th December 2024: Appointed as Project Management Consultant for IIM Raipur Phase II Campus development, valued at Rs. 148.25 crores.

7th December 2024: The company was awarded a $9,713,470 order for highway upgrading work from the Ministry of Public Works, Government of the Co-operative Republic of Guyana.

13th December 2024: RITES received Rs. 297.67 crore work order for Integrated Check Post construction from the Ministry of External Affairs.

17th December 2024: The company was awarded a Rs. 122.6 crore work order for consultancy services from the Meerut Development Authority.

2nd January 2025: The company was awarded an order worth Rs. 69.78 crores for locomotive repair work from SAIL Bhilai Steel Plant.

13th February 2025: RITES signed a MoU with Neyveli Uttar Pradesh Power Limited (NUPPL) for railway siding operation and maintenance worth Rs. 120.13 crores.

14th February 2025: RITES was awarded a work order worth Rs. 466.55 crores for railway siding work from NLC India Limited.

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Financials & Order Book

RITES reported a decline in revenue from operations, experiencing a year-on-year fall of nearly 16 percent, from Rs. 683 crores in Q3 FY24 to Rs. 575.7 crores in Q3 FY25.

Similarly, its net profit decreased during the same period from Rs. 120.2 crores to Rs. 100 crores, representing a decline of nearly 16.6 percent YoY.

As of Q3 FY25, the company reached its highest-ever order book value of Rs. 7,978 crores. During the quarter, RITES secured a record number of orders, totalling over 110 orders worth Rs. 1,933 crores.

About the Company

Incorporated in 1974, RITES Limited, a Navratna and Schedule ‘A’ Central PSU under the Ministry of Railways, is engaged in design engineering, project management consultancy, turnkey construction, export of rolling stocks, locomotive leasing, and quality assurance.

The company is a multidisciplinary engineering and consultancy organization, providing a comprehensive range of services from concept to commissioning in all facets of transport infrastructure and related technologies.

Written by Shivani Singh

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