Rites Share Price Jumps After Order Wins

Rites Ltd. saw its share price surge 7.4% on Wednesday following the announcement of order wins after market hours on Tuesday.

Rites-Aryan JV, a joint venture involving Rites, received a Letter of Acceptance from South Western Railway for the redevelopment of Tumakuru Station. The project, which includes civil works, signal and telecommunication works, and electrical general services, is valued at Rs 37.81 crore. The contract is set to be executed within 540 days from the appointed date.

In addition to the domestic order, Rites secured an international purchase order from African Rail Company for the supply of two fully overhauled ALCO locomotives. These locomotives are intended for deployment in Zimbabwe, Mozambique, and Botswana. The order, valued at $3.6 million, includes the supply and commissioning of the locomotives, which will be overhauled at a nominated facility and supported by Rites' technical team. The project is expected to be completed within nine months.

The scrip rose as much as 7.44% to Rs 299.80 apiece. It pared gains to trade 6.31% higher at Rs 296.65 apiece, as of 12:15 p.m. This compares to a 0.18% decline in the NSE Nifty 50.

It has fallen 15% in the last 12 months. Total traded volume so far in the day stood at 13 times its 30-day average. The relative strength index was at 63.

Out of six analysts tracking the company, two maintain a 'buy' rating, three recommend a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 0.7%.