Navratna PSU company, RITES Ltd’s share price ended the last trading day of September 2024, on a bearish note, with a decline of 3.7% on BSE to Rs 345.20 apiece. However, RITES broadly surged by over 6% in the month. In September alone, RITES carried a bonus issue of a 1:1 ratio and turned ex-dividend for Rs 5 per share dividend. Going ahead, investors are advised to wait in the stock, until it breaks out Rs 400 levels, which is expected to trigger a fresh rally.

RITES Share Price:

On BSE, RITES share is currently at Rs 345.20 apiece, with a market cap of Rs 16,590.44 crore. The stock’s 52-week high and low is Rs 413.08 apiece and Rs 216.33 apiece respectively. Further, its price-to-equity ratio is 39.21x, while its return on equity will be around 16.88%.

YTD, RITES share price surged by 37.5%. Its half-yearly gains are marginally up. But in September alone, the stock rallied by 6.1% on BSE.

What Is The Next Strategy In RITES Share Price?

Ameya Ranadive CMT CFTe, Sr Technical Analyst, StoxBox said, RITES Ltd. has demonstrated resilience even after trading ex-dividend, with limited downside risk and a steady performance. The stock is currently consolidating around ₹360 and has been range-bound for the past nine months, trading between ₹400 and ₹325. Despite the prolonged consolidation, the short- and mid-term trends remain positive, as RITES continues to trade above its 20-, 50-, 100-, and 200-day EMAs, signalling underlying strength.

At this point, the analyst pointed out that the stock is in a “no-trade zone” as it consolidates further. Investors are advised to wait for a breakout above ₹400, which could trigger a fresh rally. Alternatively, for those with a contrarian view, a mean-reverting strategy at ₹326 could be considered, given the stock’s well-defined range over the past several months.

Until either of these scenarios materializes, no immediate trades are recommended, adding Ranadive said, “RITES’ solid fundamentals and positive technical setup suggest limited downside, but investors should remain patient for clearer directional cues before taking any action.”

RITES Bonus Issue:

RITES turned ex-bonus on September 20, for its bonus issue of 1:1 ratio, meaning, the company allotted 1 free share on existing 1 equity share. The company allotted 24,03,01,887 (Twenty-Four Crore Three Lakh One Thousand Eight Hundred and Eighty-Seven) fully paid-up Bonus Equity Shares of the face value of Rs. 10/- each in the ratio of 1:1.

With a 1:1 bonus issue, the paid-up share capital has doubled to 48,06,03,774 shares, with a face value of Rs 10 each, for Rs 480,60,37,740.

RITES Dividend:

The railway PSU company turned ex-dividend on September 20, for its final dividend of 50% worth Rs 5 per share for FY24. Earlier, for FY24, the company paid three interim dividends. The first interim dividend was 45% worth Rs 4.50 per share. In comparison, the second interim dividend was 47.5% valued at Rs 4.75 per share, and the third interim dividend stood at 25% worth Rs 2.50 per share before the upcoming final dividend.

About RITES Ltd:

RITES Limited, a Navratna and Schedule ‘A’ Central Public Sector Enterprise under the Ministry of Railways, incorporated on April 26, 1974, is a multidisciplinary engineering and consultancy organization, providing a comprehensive range of services from concept to commissioning in all facets of transport infrastructure and related technologies. The company’s market capitalization has placed it among the top 500 listed companies in India, a testament to the high-quality solutions and services it delivers, driven by its talented pool of professionals.

Story first published: Tuesday, October 1, 2024, 2:43 [IST]