Shares of RITES soared nearly 13% in early trade on 25 November after the Northeast Frontier Railway announced a significant revision in project estimates. The project, originally valued at ₹288.44 crore, now stands at ₹531.77 crore, marking an increase of over 84%.
This development has positively impacted investor confidence, emphasising the potential to invest in stocks with strong order books.
Boost for RITES’ order book
The railway electrification project spans the LMG-BPB section of the Lumding division, executed on a turnkey basis. The upward revision in estimates adds substantial value to RITES’ existing order book, which was reported at ₹2,000 crore in the first half of FY25. Such robust project inflows highlight why many prefer to invest in stocks like RITES, which showcase consistent growth.
Impressive momentum in order acquisition
In the second quarter of FY25, RITES secured over 90 orders, averaging one contract daily. This momentum has continued into the third quarter, with the company already acquiring projects worth ₹650 crore. For those looking to invest in stocks, this steady performance underlines RITES’ ability to capitalise on infrastructure opportunities both domestically and internationally.
Strategic wins across sectors
In addition to the Northeast Frontier Railway project, RITES recently bagged a ₹36 crore order for retrofit work on metro trains and a ₹59.13 crore contract for supervising infrastructure projects in Uttar Pradesh. These diverse projects reflect the company’s strategic positioning in India’s growing infrastructure sector, offering the potential for long-term returns for individuals choosing to invest in stocks within this domain.
Expanding global and domestic partnerships
RITES has also focused on forging key partnerships. Recently, it signed agreements with a steel plant in Bokaro to enhance railway infrastructure and collaborated with Etihad Rail to strengthen transport networks in the UAE. These partnerships not only expand its operational reach but also provide compelling reasons to invest in stocks with global growth prospects.
Sustained stock performance
By 9:31 AM on 25 November, RITES shares were trading at ₹302.50, continuing their upward trajectory with a 12% gain over the past week. With consistent project inflows and expanding partnerships, the company remains an attractive option for those looking to invest in stocks tied to infrastructure and development.
Investors seeking sustainable growth and reliable returns can look at opportunities like RITES, which combines robust project pipelines with strategic market positioning.
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