Navratna PSU stock: RITES shares surge over 7% after signing an MoU with UAE-based Etihad Rail

Midcap Navratna PSU stock: Rail India Technical and Economic Service, (RITES) Ltd, a Navratna PSU, hogged the limelight in intra-day trade on Wednesday, October 9, as its shares surged over 7 per cent on signing an international deal. The mid-cap infrastructure consultancy inked a partnership with Etihad Rail, positioning itself for significant rail infrastructure projects in the UAE.

RITES share price was trading in the green, up 7.49 per cent at ₹322.85 around 10:05 am on the NSE. RITES enjoys a market capitalisation of ₹15,516.29 crore. RITES stock price hit its 52-week high on February 27, 2024, at ₹412.98 apiece.

Trigger behind RITES stock price surge

The surge comes after RITES announced it has 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.

“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 company announced in an exchange filing on October 9.

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 also rewarded shareholders with a 1:1 bonus issue on July 31, 2024, and announced a ₹5 per share dividend on May 28, 2024.

RITES share price history

Despite a dip of 14 per cent over the last two weeks, the stock has posted a remarkable 27 per cent gain over the past year.

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