Posted on March 7, 2025, by Niftynews
RITES Stock Price (BSE: RITES) surged more than 5% on Friday after the company announced the receipt of a Letter of Acceptance (LoA) for a major infrastructure project valued at ₹27.96 crore. The RITES share price hit ₹224.80 per share, marking a significant rise following the news.
Why RITES Share Price Jumped Today
RITES stock price rallied after the company secured the LoA from South Central Railway for an essential survey and design project related to the High-Speed Elevated Rail Corridor between Hyderabad-Bengaluru and Hyderabad-Chennai. This project involves advanced modern survey techniques, such as LIDAR (Light Detection and Ranging), to create precise Final Location Surveys and the Preparation of Detailed Project Reports (DPR).
RITES will execute the contract over the next 8 months. The news highlights RITES’ continued role in the growth of India’s railway infrastructure, especially in light of the country’s efforts to modernize its transportation system.
RITES Stock Performance in the Market
RITES share price trends show that despite the recent rally, the stock has faced challenges. Over the past month, the stock has dropped by 4.5%, and on a year-to-date (YTD) basis, it has fallen by 25%. Over the last six months, the RITES stock price has dropped 33%, and in the past year, RITES has seen a significant 40% decline.
However, RITES shares are showing strong long-term performance. The stock has rallied 26% over the past two years and provided impressive 81% returns over the last three years, underlining its resilience and growth potential.
RITES’ Solid Order Book and Market Growth
As of December 2024, RITES’ order book was valued at a record ₹7,978 crore, up from ₹5,690 crore in December 2023. This growth reflects the company’s ability to secure high-value projects within India’s expanding railway infrastructure market. With 700 ongoing projects, RITES is strategically positioned to capitalize on government initiatives and infrastructure development in the rail sector.
The latest Letter of Acceptance is a testament to RITES’ market performance and ability to secure crucial contracts, further cementing its position in the growing Indian infrastructure stocks sector.
What’s Driving RITES’ Stock Surge?
The recent surge in RITES stock price is not just attributed to the LoA but also to investor sentiment regarding the company’s growing order book and strategic government projects. While the stock has faced volatility in the short term, the railway infrastructure sector remains a strong growth driver for RITES. With the ongoing high-speed rail projects and RITES’ focus on modern survey technologies, the company stands to benefit from increased demand in the coming years.
Analyst View on RITES Shares
Despite short-term volatility, analysts remain optimistic about RITES’ future growth. Jefferies noted that the stock is currently trading at a discount relative to its long-term growth potential. It sees an upside potential as RITES continues to secure government contracts in the lucrative railway infrastructure sector.
RITES is a strong player in the Indian PSU space, benefiting from government-led initiatives and a growing demand for railway modernization.
Conclusion: Is RITES a Good Buy?
RITES’ recent contract win for the Hyderabad-Bengaluru elevated rail corridor has sparked renewed interest in the stock, as investors look to capitalize on the company’s long-term investment potential. Despite recent share price declines, RITES has shown strong market returns over the last few years and remains a top pick for those interested in the Indian infrastructure stocks sector.
At the time of writing, RITES stock price was trading at ₹220.60 per share, up by 3.67% from the previous session, with a market capitalization of over ₹10,602 crore. The company’s strong order book and government project pipeline position it well for continued success in the railway and infrastructure sectors.
