Rites share price

RITES Limited: Dividend, Bonus Shares, and Latest News

RITES Limited, established on April 26, 1974, is a Navratna and Schedule ‘A’ Central Public Sector Enterprise (CPSE) under the Ministry of Railways. Renowned in the transportation consulting and engineering sector, RITES ranks among India’s top 500 listed firms by market capitalization. With a vast portfolio covering inland waterways, airports, highways, ports, metros, tunnels, and sustainability projects, RITES has earned a prominent position globally. The company’s footprint extends across 55 countries in Asia, Africa, Latin America, and the Middle East.

In this article, we explore RITES Limited’s latest developments, including its dividend announcement, bonus shares, collaboration with NBCC, and stock price analysis.

RITES Limited’s Upcoming Dividend

RITES Limited recently announced a final dividend for the financial year 2023-24. Below are the key details:

• Dividend Amount: ₹5.00 per share of ₹10 each
• Total Dividend: ₹120.15 crore
• Approval: Subject to member approval at the Annual General Meeting (AGM)
• Eligibility: Shareholders holding shares in physical form or in demat form via NSDL and CDSL as of the record date, Friday, September 20, 2024
• Taxation: Dividend will be paid after deducting tax at source

This dividend distribution is another reflection of RITES’ consistent returns to shareholders, enhancing investor confidence.

Bonus Shares Announcement

In addition to the dividend, RITES Limited has announced a 1:1 bonus share issue:

• Bonus Ratio: 1:1 (one equity share for every one share held)
• Face Value: ₹10 per share
• Capitalization Amount: ₹240.30 crore
• Record Date: Friday, September 20, 2024

This bonus share issuance aims to enhance liquidity and reward long-term shareholders, making RITES an attractive investment for both current and prospective investors.

RITES’ Latest Collaboration with NBCC

In a significant development, RITES Limited has signed a Memorandum of Understanding (MoU) with NBCC (India) Ltd., a CPSE under the Ministry of Housing Development. The collaboration focuses on delivering comprehensive consultancy and project management services across various sectors. Here are the highlights:

• Scope of Work: The partnership will cover projects from concept to commissioning, including planning, design, cost estimation, and construction supervision.
• RITES’ Role: Consultancy and project management, including coordination of construction activities.
• NBCC’s Role: Expertise in contract management, quality assurance, and project execution.

This collaboration is expected to strengthen both organizations’ capacities, expanding their reach in fee-based projects and EPC (Engineering, Procurement, and Construction) contracts.

RITES Share Price Target and Analysis

RITES’ stock has shown resilience in recent trading sessions, with potential upward movement, according to analysts.

Hardik Matalia – Derivative Analyst at Choice Broking

• Current Price: ₹665
• Price Action: Strong reversal from the 200-day EMA (₹641), indicating potential for further upward movement.
• Target Price: ₹720
• Support Levels: Immediate support at ₹620, with the RSI at 47, signaling neutral momentum but rising from oversold levels.
• Recommendation: RITES offers a promising buying opportunity, with a stop-loss at ₹620 to mitigate downside risks in volatile markets.

A R Ramachandran – Independent Research Analyst

• Outlook: The stock is showing a bullish pattern on daily charts, with strong support at ₹646.
• Target: A daily close above ₹687 could push the price to ₹786 in the near term.

With technical analysis favoring a positive outlook, investors can look forward to potential gains, particularly if market conditions remain stable.

Conclusion

RITES Limited continues to maintain its stronghold as a leading public sector enterprise, delivering value to its shareholders through dividends, bonus shares, and strategic collaborations like the MoU with NBCC. The company’s stock also shows promising potential, making it a noteworthy consideration for investors.

Whether you’re an existing shareholder or considering adding RITES to your portfolio, this company remains a strong performer in India’s transportation and engineering consulting sector.

FAQs:

1.What is the dividend announced by RITES Limited?

A. RITES has announced a final dividend of ₹5.00 per share, totaling ₹120.15 crore, subject to AGM approval.

2.When is the record date for RITES’ dividend and bonus shares?

A. The record date for both the dividend and bonus shares is Friday, September 20, 2024.

3.What is the bonus share ratio announced by RITES?

A. RITES has announced a 1:1 bonus share issuance, giving one additional share for every share held.

4.What is the role of RITES in the MoU with NBCC?

A. RITES will provide consultancy and project management services, including construction coordination and pre-construction activities.

5.How does NBCC contribute to the partnership with RITES?

A. NBCC will offer its expertise in contract management, project execution, and quality assurance.

6.What is the target price for RITES shares?

A. Analysts have set a target price of ₹720, with further potential for ₹786 if the stock closes above key resistance levels.

7.What is the support level for RITES shares?

A. Immediate support is at ₹620, with a recommended stop-loss to manage risk.

8.How many bonus shares will I receive if I hold 100 shares of RITES?

A. You will receive 100 additional bonus shares, based on the 1:1 bonus ratio.

9.Is RITES stock a good investment?

A. Based on technical analysis and current market conditions, RITES shows promising potential for short- to mid-term gains.

10.What sectors does RITES operate in?

A. RITES operates in various sectors, including transportation, sustainability, urban engineering, and green mobility.

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