RITES shares rocket 19%, as co bags Rs 414-crore order; join rail stocks’ rally

Shares of RITES Limited surged 19 percent to Rs 656 to hit a new 52-week high in afternoon trade on January 20 after the company won a Rs 414-crore Project Management Consultancy (PMC) from IIT- Bhubaneswar. RITES will undertake the construction of various infrastructure works for the institute.

“The estimated project cost, including the PMC fees, is estimated to be Rs 414 crore, excluding GST,” the transport consultancy and engineering company said in an exchange filing.

At 1:05 pm, the stock was trading at Rs 653, up 17 percent from the previous close on the NSE. The Sensex was up 0.6 percent at 71,640.

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In today’s trade, railway stocks zoomed up to 13 percent, extending their record-breaking run. The rally in railways-related stocks comes just weeks before the Interim Budget presentation. Analysts expect allocation towards the railways to be high, and it will be watched keenly by the market.

Also read: Ircon, IRFC, RVNL, other rail stocks extend rally, zoom up to 13% to record highs

“This is a pre-election interim budget but will be eagerly looked at as the final budget because of the expectation of the ruling govt coming back into power. The GoI has focussed heavily on infrastructure building, both digital and physical. We expect the same focus to remain on all assets like roads, airports, ports and railways,” said Mukesh Kochar, National Head of Wealth at AUM Capital.

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