RITES shares are expected to remain in focus following the company's signing of a Memorandum of Understanding (MoU) with Hindustan Petroleum Corporation (HPCL) to provide consultancy services for railway siding infrastructure development across HPCL's facilities. According to reports, the MoU covers end-to-end consultancy services from concept to commissioning, including feasibility studies, final location surveys, detailed project reports (DPRs), detailed engineering, project management consultancy, construction supervision and coordination with Indian Railways for statutory approvals.
RITES reported strong financial results with net profit rising 7.7% year-on-year to ₹98 crore from ₹91 crore, while revenue grew 8.6% YoY to ₹532 crore from ₹490 crore. However, EBITDA remained flat at ₹114 crore, with EBITDA margin declining to 21.5% from 23.4% YoY. The company's market capitalisation stands at approximately ₹11,267.76 crore.
Prabhudas Lilladher has maintained a 'Buy' rating on RITES with a revised target price of ₹267, based on a 25x FY28E P/E multiple. The brokerage highlighted that the stock offers an attractive dividend yield of around 4–5%. RITES shares closed at ₹234.45 in the previous session, gaining ₹3.30 or 1.43%, and have touched a 52-week high of ₹280.60 and a 52-week low of ₹175.10.
