RITES Share Price Today: PSU Stock Jumps Over 7% - What's Fueling The Rally?

The share price of RITES jumped more than 7% during the early morning trade on Wednesday as the company announced securing two major orders.

RITES Share Price Today

The multi-bagger PSU railway stock increased 7.43% to Rs 299.95 per equity share on the BSE today.

The shares of Rail India Technical and Economic Service (RITES) were trading at Rs 1,979.15 per equity share, marginally high as compared to the previous close of Rs 1,960.70 apiece on the BSE.

What Is Fueling The Rally?

The state-run infrastructure firm, RITES announced that it has received a Purchase Order from African Rail Company for the supply of two fully overhauled ALCO locomotives to be deployed in Zimbabwe, Mozambique and Botswana.

This also includes the supply and commissioning of the overhauled in-service Cape Gauge ALCO Diesel Electric Locomotives fitted with new Cape Gauge Bogies, Traction Motors, Control System, among others, which will be overhauled at nominated facility and warranty support with the deputation of RITES technical team, the PSU said in a company filing.

This order needs to be executed in 9 months and it is worth $3.6 million.

The company has also informed in a separate regulatory filing that the RITES-Aryan JV (joint venture) has received a Letter of Acceptance (LoA) from South Western Railway.

The order is worth Rs 37.81 crore excluding GST, and the time period by which the order is to be executed is 540 days from the appointed date as per the agreement.

This order is for Tumakuru Station Redevelopment Engineering, Procurement and Construction Agreement for Tumakuru Station Redevelopment including Civil Works, Signal and Telecommunication works and Electrical General Services at Tumakuru Station.

Also Read: Explained: Why Your Next Ride On Uber, Ola Or Rapido May Cost Twice as Much