RITES Ltd., a Navratna Public Sector Undertaking under the Ministry of Railways, is set to announce its second interim dividend for FY25, with the announcement expected in November. This will mark the first dividend payout since the company’s recent 1:1 bonus issuance.
On October 18, RITES’ stock dipped by 1.85% on the BSE, closing at Rs 302.80. The company currently has a market capitalization of Rs 14,552.68 crore, with a 52-week high of Rs 413.08 and a low of Rs 216.33. Its price-to-earnings ratio stands at 34.40x, while the return on equity is at 16.88%. Year-to-date, RITES stock has appreciated by nearly 21%.
The Board of Directors has scheduled a meeting for November 6, 2024, to review the standalone and consolidated unaudited financial results for the quarter and half-year ending September 30, 2024. During this meeting, they may also consider declaring the second interim dividend, with the record date set for November 15, 2024, if approved.
In 2024, RITES has already paid a total dividend of Rs 12.25 per share, including a recent payout of Rs 5 per share, with the company turning ex-dividend in September. Last fiscal year, RITES declared dividends totaling 180%, or Rs 18 per share, resulting in a current dividend yield of 5.94%.
RITES, incorporated on April 26, 1974, offers a comprehensive range of services in transport infrastructure and related technologies. Analysts have a mixed view on the stock, with a consensus recommendation of “HOLD” from four analysts. One analyst suggests a “Strong BUY,” while two others recommend holding. The earnings per share (EPS) is expected to grow by 1.8% in FY25, and the average 1-year target price is set at Rs 459.25, indicating a potential upside of 52%. Broker Antique Stock Broking has also suggested a “HOLD” stance for RITES shares, with a target price of Rs 354.
Overall, RITES is well-positioned in the transport consultancy and engineering sector, with diversified services and a broad geographical reach, covering various areas such as railways, highways, urban engineering, sustainability, and more.
Disclaimer: This content is for informational purposes only and should not be considered as financial or investment advice. The performance of RITES Ltd. and any other stock mentioned is subject to market risks, and past performance is not indicative of future results. Investors are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author does not hold any positions in the stocks mentioned in this article.
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