This railway PSU stock surged 8% after bagging a multi-million dollar order; Details here

Shares of RITES Ltd. gained over 8% on Tuesday, July 7, after the company won an order worth $35.82 million. With this, the stock has snapped a three-day losing streak.

Ahead of Tuesday's trading session, shares of RITES had declined in five out of the last six trading sessions, with the only positive session on July 1 resulting in a 13% upmove.

RITES, informed the stock exchanges in a filing on Monday, that it won the contract from an international entity Volantis Asset Finance (Ply) Ltd. to supply and commission the 4,000 HP Cape Gauge Diesel Electric Locomotives.

The order has to be executed within a 20-month timeframe, RITES said in it statement.



In May, RITES had said it expects its export and turnkey businesses to drive growth in the financial year 2027.

RITES chairman and managing director (CMD) Rahul Mithal told CNBC-TV18 that the firm's international business revived strongly after a two-year gap, supported by a ₹2,100 crore overseas order book.

Mithal said the company was expecting the turnkey contribution to be between 10% to 15% in financial year 2027 and also expressed confidence of crossing the mark of ₹10,000 crore for the company's overall order book, backed by steady order inflow and stronger execution.

During the March quarter, RITES reported a 28% increase in revenue to ₹768.26 crore from ₹602.29 crore in the previous year. Its EBITDA declined 9% to 168.16 crore and margins contracted to 22% from 31% in the year-ago period.

Its net profit was down 2% to ₹129.96 crore from ₹132.71 crore in the previous year.

Shares of RITES are trading 8.1 higher on Tuesday at ₹233.76 after the order win announcement. The stock is the top gainer on the Nifty 500 index today. The stock had made a record high of ₹413.08 on February 27, 2024, from which it has declined over 40%.