RITES Ltd started the calendar year 2025 on a positive note as the state-run firm announced that it has received an acceptance letter from Guyana for a $9.71 million order. Last month, the state-run firm emerged as the top scorer (H-1 bidder) based on QCBS evaluation for provision of engineering services for upgrading Palmyra to Moleson Creek Highway in Guyana. The estimated contract size is $9,713,470 (excluding taxes) and the project has to be executed in five years.
On Wednesday, RITES shares rose 1.20 per cent to settle at Rs 295.25. The counter saw high trading volume on BSE as around 3.79 lakh shares changed hands. The figure was higher than the two-week average volume of 2.80 lakh shares. Turnover on the counter came at Rs 11.15 crore, commanding a market capitalisation (m-cap) of Rs 14,189.83 crore.
On the technical play, support could be seen in the Rs 275-270 zone. A decisive close above the Rs 300-310 range is required for more upside. An analyst suggested avoiding the stock at current levels.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "A sustainable buying above Rs 300-310 could lead to further upside momentum eyeing Rs 340-350 levels in the near period. On the lower end, Rs 270 remains a sacrosanct support zone."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be at Rs 275 and resistance at Rs 310. A decisive move above Rs 310 level may trigger a further upside towards Rs 330. The expected trading range will be between Rs 275 and Rs 330 for the short term."
Kushal Gandhi, Technical Analyst at StoxBox, recommended avoiding the stock at the current market price.
The scrip traded higher than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but lower than the 100-day, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 54.19. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the stock has a price-to-equity (P/E) ratio of 36.14 against a price-to-book (P/B) value of 5.72. Earnings per share (EPS) stood at 8.17 with a return on equity (RoE) of 15.83.
RITES, formerly known as Rail India Technical and Economic Service Ltd, is a leading player in the transport consultancy and engineering sector in India. The government held a 72.20 per cent stake in the PSU.