Navratna PSU stock: RITES shares surge 7% after MoU with UAE-based Etihad Rail | Stock Market News
Source: Live Mint
Navratna PSU stock: RITES Ltd, a Navratna PSU, is making waves in the stock market today, with shares surging by 7% on news of a major international deal. The mid-cap infrastructure consultancy has inked a groundbreaking partnership with Etihad Rail, positioning itself for significant rail infrastructure projects in the UAE.
Shares reached ₹321.65 each, as excitement grew over the company’s new partnership.
The surge comes after RITES Ltd announced it had signed a Memorandum of Understanding (MoU) with Etihad Rail, a major player in the UAE’s national rail network, for infrastructure development projects. This collaboration could lead to significant opportunities for RITES in the region.
The MoU is seen as a major win for the company, with RITES stating in an official release on October 8, 2024: “RITES Ltd., a prime transport infrastructure consultancy, today signed a Memorandum of Understanding (MoU) with Etihad Rail, the developer and operator of the UAE National Rail Network, to explore cooperation and synergise strengths in developing railways and related infrastructure services in the UAE and wider region.”
The partnership is not the only recent positive development for RITES. Just last week, the firm secured a ₹5.40 million order from Ntokoto Rail Holdings Pty. Ltd., to be executed within six months. The company has also rewarded shareholders with a proposed 1:1 bonus issue on July 31, 2024, and announced a ₹5 per share dividend on May 28, 2024.
Despite a recent dip of 14% over the last two weeks, the stock has posted a remarkable 27% gain over the past year. The new target price for RITES Ltd shares has been set at ₹334, further fueling investor optimism.
