Shares of Rites Ltd. have surged over 6% on Friday's trade, reaching an intraday high of Rs 270. This comes on the back of the company's key international order win in South Africa.
Rites is currently trading at Rs 266, which amounts to gains of more than 5.5%. This surge would go a long way in aiding the stock's momentum, especially after a correction of more than 24% in the last year.
Rites' rally stems from the company's order win in South Africa, with the company receiving a letter of award from Talis Logistics.
The order was for the supply and commissioning of overhauled in-service specially designed locomotives, the company confirmed in an exchange filing.
The contract, which is valued at $18 million or Rs 153 crore, will be executed within six to eight months from the receipt of advance, the company added.
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Last week, Rites had also won an order from NTPC for hiring diesel locomotives on a lease basis for power plants across India. The total amount of the order was around Rs 78 crore.
Currently trading at a relative strength index of 62, which implies neutral market sentiment for the stock.
Three out of the six analysts tracking Rites have a 'buy' rating on the stock, and three suggest a 'hold', according to Bloomberg data. The average of 12-month analyst price target implies a potential upside of 7%.
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