RITES Shares Rise Over 7% After ₹299 Crore South Africa Order, Locomotive Supply Deal Boosts Investor Confidence
RITES shares climbed 7.09 percent to Rs 231.48 after the company secured a Rs 299 crore locomotive supply contract from South Africa's Volantis Asset Finance. The export order, to be executed over 20 months, revived investor sentiment after the stock had declined in five of the previous six trading sessions.
RITES shares climbed 7.09% to ₹231.48 after the company secured a ₹299 crore locomotive supply contract from South Africa's Volantis Asset Finance. |
Mumbai: Shares of RITES Ltd rallied sharply on Tuesday after the company announced a Rs 299 crore international order for supplying locomotives to South Africa. The fresh export contract cheered investors, pushing the stock 7.09% higher to Rs 231.48 on the NSE at 12:05 pm, a gain of Rs 15.33 over the previous close of Rs 216.15.
The stock opened at Rs 226.30 and climbed to an intraday high of Rs 236.00, reflecting strong buying interest after the announcement.
Rs 299 Crore Export Contract
In a regulatory filing, RITES said it has received the order from Volantis Asset Finance (Pty) Ltd for the supply and commissioning of 4,000 HP Cape Gauge Diesel Electric Locomotives.
The project is valued at Rs 299 crore and will be completed within 20 months, strengthening the company's overseas order book.
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Strong Market Reaction
The latest order came at the right time for the stock. Ahead of Tuesday's trading session, RITES shares had fallen in five of the previous six trading sessions. The only positive day during that period was July 1, when the stock had surged nearly 13 percent.
Tuesday's rally suggests investors viewed the new international contract as a positive trigger that could improve revenue visibility and support future earnings.
Global Presence Expands
The South Africa order further strengthens RITES' position in the global railway infrastructure and rolling stock business. International contracts not only diversify the company's revenue sources but also highlight its growing presence in overseas railway projects.
Stock Snapshot
According to the latest market data, RITES has a market capitalisation of Rs 11.12 crore (displayed as 11.12KCr on the exchange screen), a P/E ratio of 27.11, a 52-week high of Rs 287, and a 52-week low of Rs 175.
With the fresh Rs 299 crore export order, investors will now closely watch the execution of the project and whether it leads to more international business opportunities for the company.
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