Midcap Navratna PSU stock: Rail India Technical and Economic Service, (RITES) Ltd, a Navratna PSU, is making waves in the stock market today, with shares surging over 7 per cent on news of a major international deal. The mid-cap infrastructure consultancy has inked a groundbreaking partnership with Etihad Rail, positioning itself for significant rail infrastructure projects in the UAE.
(RITES share price was trading in the green, up 7.49 per cent reaching ₹322.85 levels on October 9, at 10:07 am, on NSE. RITES enjoys a market capitalisation of ₹15,516.29 crore. RITES stock price hit its 52-week high on February 27, 2024, at ₹412.98, on NSE.
Trigger behind RITES stock price surge
The surge comes after RITES Ltd announced it had signed a Memorandum of Understanding (MoU) with Etihad Rail, a major player in the UAE’s national rail network, for infrastructure development projects. This collaboration could lead to significant opportunities for RITES in the region.
The MoU is seen as a major win for the company, with RITES stating in an official release on October 8, 2024.
“RITES Ltd., a prime transport infrastructure consultancy, today signed a Memorandum of Understanding (MoU) with Etihad Rail, the developer and operator of the UAE National Rail Network, to explore cooperation and synergise strengths in developing railways and related infrastructure services in the UAE and wider region,” the company announced in an exchange filing.
The partnership is not the only recent positive development for RITES. Just last week, the firm secured a ₹5.40 million order from Ntokoto Rail Holdings Pty. Ltd., to be executed within six months. The company has also rewarded shareholders with a proposed 1:1 bonus issue on July 31, 2024, and announced a ₹5 per share dividend on May 28, 2024.
RITES share price history
Despite a recent dip of 14 per cent over the last two weeks, the stock has posted a remarkable 27 per cent gain over the past year.
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