RITES Limited, a subsidiary of Indian Railways, announced that it has secured a contract from the National Railways of Zimbabwe. The contract, involving the supply of 3000 HP diesel-electric locomotives and high-speed open wagons, is valued at around ₹665 crores.
Boost to RITES Order Book
Following this new order, the order book of RITES Limited has swelled to ₹6535 crore, up from ₹5870 crore as of March 31, 2023. This increase has triggered a positive reaction in the stock market, driving the company’s shares up by 6% to ₹400, up from the previous close of ₹378.
Record Highs for RITES Limited
RITES Ltd. stocks have demonstrated a strong performance over the past year, with a 52-week high of ₹433 and a low of ₹226. Following the recent contract announcement, trading volumes on the Bombay Express Stock Exchange more than doubled.
From June 12, 2023, when the company’s shares stood at ₹375, investors have seen a return of ₹25 per share. In comparison to February 22 of the same year, when shares were trading at ₹312, returns have exceeded 25%.
Compared to last year on June 20, when shares stood at ₹228, investors have reaped a robust return of ₹172, equating to a gain of approximately 76%. Over the past 12 months, RITES stocks have yielded a hefty 62% return for investors, outperforming the Nifty SmallCap 100 index’s return of nearly 28%.
Looking Ahead
RITES Limited shares have shown significant potential for further growth. Technical charts reveal a symmetrical triangle pattern on the daily time frame, suggesting that shares might accelerate even further.
Taking a longer view, since July 20, 2018, when RITES Limited shares were valued at ₹156, investors have enjoyed an impressive return of ₹242, highlighting the company’s strong growth trajectory.
Summary
- RITES Limited has secured a contract from the National Railways of Zimbabwe, boosting its order book to ₹6535 crore.
- The company’s shares surged by 6% following the announcement, reaching ₹400.
- Over the past year, RITES Ltd. stocks have returned a substantial 62% to investors, outperforming the Nifty SmallCap 100 index.
- With technical charts indicating a potential for further acceleration, RITES Limited looks set to continue its strong performance.
