Rites Ltd Shares Open Strongly at 3% Hike After Guyana Order and MoU with HCL
By HDFC SKY | Published at: Jun 10, 2025 05:35 PM IST
Mumbai, June 10, 2025 – Shares of RITES Ltd (NSE: RITES | BSE: 541556) surged by ₹7.25 (3.00%) to trade at ₹310.50 in early hours on Tuesday, following a major $2.9 million overseas order win and a strategic partnership with Hindustan Copper Ltd (HCL). The Guyana Order announcement sparked investor optimism and confidence as the company’s global footprint is set to be enhanced.
The MoU with HCL aims at jointly developing a sustainable supply chain for critical metals and minerals. At 12:30 PM, the stock price corrected just about 0.25% after the early day’s buying rally.
Stock Movement
| Price Metrics | Value (₹) |
|---|---|
| Previous Close | 302.25 |
| Open | 305.95 |
| High | 310.55 |
| Low | 303.60 |
| VWAP | 306.80 |
| Last Traded Price | 309.50 |
Buy quantity stood at 1.60 lakh shares, while sell quantity reached 4.09 lakh shares, showing strong buying interest amid positive news flow.
Reasons for the Early Day Rally
1. International Order from Guyana
RITES has secured a significant international contract from the Ministry of Public Works, Co-operative Republic of Guyana. The contract, valued at USD 2.9 million, involves:
- Construction supervision for the East Bank–East Coast Road Project (Phase 2) from Eccles to Providence.
- Additional work under the existing assignment.
- A project duration of 18 months, supervision followed by 12 12-month defect liability period.
This project is set to increase the company’s total revenues and boost its international credentials.
2. MoU with Hindustan Copper Ltd (HCL)
On June 6, 2025, RITES signed a Memorandum of Understanding (MoU) with HCL to develop a sustainable and integrated critical minerals supply chain. The collaboration focuses on:
- Joint participation in mineral block auctions
- Development of mining infrastructure
- RITES providing end-to-end consultancy, logistics, and transport planning solutions to support HCL’s operations
With this MoU, RITES is positioned strongly in India’s critical minerals infrastructure wave, thereby resulting in increased investor enthusiasm.
Price and Valuation Indicators
| Metrics | Value |
|---|---|
| Market Cap | ₹14,874.69 Cr |
| Free Float Market Cap | ₹4,072.63 Cr |
| Adjusted P/E | 35.04 |
| 52-Week High | ₹398.45 |
| 52-Week Low | ₹192.40 |
| Annualised Volatility | 59.42% |
About the Company
RITES Limited is a Navratna PSU under the Ministry of Railways, specializing in transport infrastructure consultancy and engineering. The company operates across over 55 countries with diversified expertise in railways, highways, ports, and urban infrastructure.
A fresh international order and a future-oriented partnership in the critical minerals sector have fueled renewed investor optimism around RITES’ global and strategic capabilities.
REF: https://www.nseindia.com/get-quotes/equity?symbol=RITES
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