This PSU stock is trending on September 29

This PSU stock is trending on September 29

Indian Market
by 5paisa Research Team Last Updated: 2022-09-29T12:37:23+05:30

The shares surged 6% on the day.

On September 29, the market is trading in green. At 12:21 pm, the S&P BSE Sensex is at 56654.43, up 0.1% on the day, while NIFTY50 is up 16% and trading at 16885. About sectoral performance, Metal and Healthcare are among the top gainers, while Consumer durables are the top loser. Regarding stock-specific action, Rites Ltd is among the top gainers.

The shares of RITES Ltd surged 6% and are trading at Rs 319.95. The stock opened at Rs 304.85 and since has made an intraday high and low of Rs 324.9 and Rs 304.7, respectively.

RITES Ltd is a public sector enterprise that is a leading player in the transport consultancy and engineering sector in India, offering a wide range of services and having a large geographical footprint. The company is Indian Railways' sole export arm for providing rolling stock in the international markets.

FY22 was a very successful year for the company when the highest ever sales and net profit figures were recorded. The FY22 sales and net profit stood at Rs 2662 and Rs 539 crore, respectively. As per the FY22 period ending the company has ROE and ROCE of 21.1% and 30.2%, respectively.

For the latest June quarter, on a consolidated basis, the company generated revenue of Rs 637 crore, a staggering 62% increase. Similarly, its FY22 net profit improved by 85% from Rs 78 crore reported in FY21.

About the shareholding pattern, 72.2% of the stake is owned by the Government of India, 1.48% by FIIs, 17.26% by DIIs, and the rest 9.06% by non-institutional investors.

The company has a market capitalization of Rs 7719.7 crore and is currently trading at a PE multiple of 13.05. The stock has a 52-week high and low of Rs 324.9 and Rs 226.05, respectively.

The government’s focus on transport infrastructure spending is painting a positive outlook for the company.

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