RITES Share Price Surge 12.5% Amid Ex-Dividend and Ex-Bonus Trading
RITES Ltd experienced a significant surge of 12.5%, reflecting a positive response from investors as the stock began trading ex-dividend and ex-bonus. This upward movement in RITES’ stock price comes in light of the company’s recent announcements regarding dividend payments and potential bonus shares, which have generated considerable interest among shareholders.
RITES Ltd, a public sector undertaking under the Ministry of Railways, is known for its expertise in transport consultancy and engineering services. The company has a strong presence in India and has undertaken projects in over 55 countries across various continents. The surge in stock price is attributed to multiple factors, including the anticipation surrounding the upcoming board meeting where the approval for interim dividends and bonus shares will be discussed.
Full Details on RITES Share Price Performance
The stock opened at ₹746.00 before climbing to an intraday high of ₹764.45 during trading hours. This marked a notable recovery from a previous four-day losing streak, where the shares had faced downward pressure. The trading volume was significantly higher than average, with approximately 4.24 lakh shares exchanged on the Bombay Stock Exchange (BSE), compared to a two-week average of 1.77 lakh shares.
In addition to the surge in share price, RITES announced that its Board of Directors would meet to consider the first interim dividend for the financial year 2024-25. The company had previously declared a dividend payment of ₹2.50 per share, with a record date set for August 8, 2024, allowing shareholders who held shares by that date to benefit from this payout.
Moreover, there is speculation about a potential bonus share issue, which would reward existing shareholders without any additional cost. Bonus shares are typically issued in a specific ratio based on the number of shares already held by shareholders. This could further enhance shareholder value and attract new investors looking for growth opportunities.
RITES Share Price Market Sentiment and Analyst Recommendations
The recent performance of RITES shares has garnered attention from market analysts, many of whom have given a “Buy” recommendation based on the stock’s fundamentals and technical indicators. The consensus target price for RITES shares is around ₹755, indicating potential upside from current levels.
Technical analysis shows that RITES shares are trading above various moving averages, including the 5-day and 200-day simple moving averages (SMA), suggesting a bullish trend. The relative strength index (RSI) is currently at 56.20, indicating that while there is room for growth, the stock is not yet overbought.
Investors are also keenly observing RITES’ financial health following its recent quarterly results announcement. In Q4 FY24, RITES reported a slight decline in consolidated net profit to ₹136.67 crore compared to ₹138.89 crore in the same quarter last year. The total income also fell to ₹667.68 crore from ₹705.63 crore year-on-year.
Despite these challenges, analysts remain optimistic about RITES’ long-term prospects due to its robust order book and diversified service offerings. Recently, RITES secured a major project worth ₹321.30 crore for project management consultancy related to a new medical college and hospital construction in Maharashtra.
Broader Market Context
The surge in RITES shares comes at a time when broader market sentiment appears positive, with several stocks reaching new highs on Indian exchanges. Investors are increasingly looking towards public sector undertakings (PSUs) like RITES as they offer stable returns and growth potential amidst market volatility.
As retail investors continue to show interest in PSU stocks, RITES stands out due to its historical performance and ongoing projects that promise future revenue streams. The company’s ability to secure international contracts further enhances its reputation as a reliable player in the transport consultancy sector.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
