PSU Stock to Track: Navratna railway firm secures international deal

A Navratna PSU firm RITES on Tuesday said that it secured an international deal. The PSU company has been awarded a contract worth USD 2.9 million from the Ministry of Public Works, and the Co-operative
Republic of Guyana. 

According to the BSE website, RITES Ltd has received a contract worth USD 2,908,824.5 from Guyana.

The contract pertains to construction supervision for the second phase of the East Bank–East Coast Road Project, which also includes additional work related to the ongoing project. The total duration of the contract is 30 months, comprising 18 months for construction supervision and 12 months for the defect liability period.

Earlier, on June 3, RITES emerged as the lowest bidder (L1) for a tender floated by Gujarat Urban Development Company Limited. The value of this order is Rs 28.50 crore.

Additionally, the company declared a dividend of Rs 2.65 per share on a face value of Rs 10, representing a 26.50 per cent dividend payout.

The company has also signed a Memorandum of Understanding (MoU) with Hindustan Copper to collaborate on developing a rapid, reliable, and sustainable supply chain for metals and minerals, including critical minerals.

The two state-run entities will determine financial arrangements on a project-by-project basis, depending on the nature and scale of each initiative. However, the MoU is non-binding and does not establish any legally enforceable obligations between the parties.

Stock Performance

As per the NSE data, shares of Navratna PSU RITES ended inch lower at 301.45 on June 10. The 52-week high for the stock is Rs 398.50, while the 52-week low stands at Rs 192.30. The stock has risen by 39 per cent in the past month, and over 40 per cent in the last three months. It has delivered a return of 148 per cent over the past three years.

However, the PSU stock has declined by more than 8 per cent in the last one year.