Shares of RITES Ltd. plunged by nearly 2.5% after touching a day’s high of Rs 704.50 on 25 July, after the company announced that it had received a letter of intent for project consultancy work on hospital construction in Amravati, Maharashtra.

The company bagged a Rs 321.30 crore project order from the Directorate of Medical Education & Research, Mumbai, excluding GST, and is expected to be completed within 30 months, with an additional defect liability period of 60 months.

During the last month, RITES signed an MoU with Delhi Metro Rail Corporation to explore consultancy and O&M for Metro Rail Systems.

The company has a robust order book of Rs 5,690 crore as of Q4 FY24. The breakdown involves Rs 2,600 crore allocated for consultancy services, Rs 2,505 crore earmarked for turnkey projects, an export service price tag of Rs 295 crore, a qualified personal leasing cost of Rs 170 crore, and other expenditures costing about Rs 120 crore.

The revenue earned from operations of the company decreased from Rs 2,628 crore in FY23 to Rs 2,453 crore in FY24 by 6.67%, resulting in a decline in profit from Rs 571 crore to Rs 495 crore.

The company reported a return on equity (ROE) of 17.5% and a return on capital employed (ROCE) of 24.8%. RITES Limited is debt-free, with a debt-to-equity ratio of 0.

The stock is currently trading below its significant exponential moving averages with an RSI of 43.4, according to Trendlyne. The market capitalisation of the company fell to Rs 16,429 crore.

At 3:30 PM, the shares of RITES Ltd. closed 2.38% lower at Rs 675.50 on BSE.

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