RITES Gets Revised Estimate Of Rs 532 Crore For Electrification Work Of Northeast Frontier Railway

RITES Ltd. on Friday informed the bourses that it has received a revised estimate of Rs 532 crore for an electrification project under the Northeast Frontier Railway.

The revised cost of Rs 532 crore, excluding the goods and services tax, is 84% higher as compared to the original cost of Rs 288.44 crore. The estimated cost covers project management consultancy fees.

The electrification work is to be carried out on a turnkey basis at the Lumding junction and Badarpur junction section of Lumding division of Northeast Frontier Railway, according to an exchange filing.

"...in continuation to our intimation dated June 28, 2021 regarding major order secured for Railway Electrification work for project -Lumding- Badarpur”, we are pleased to inform you that RITES has received revised estimates for Railway Electrification work of LMG-BPB Section of Lumding Division, N.F Railway on November 21, 2024 from Northeast Frontier Railway," RITES stated in the filing.

The development comes around a month after RITES signed a memorandum of understanding with Etihad Rail to work on rail infrastructure projects in the United Arab Emirates.

The two companies will collaborate on developing advanced IT solutions to improve train operations and passenger management, with a strong emphasis on innovation and technology, a release had stated on Oct. 9.

Shares of RITES on Friday closed 0.79% higher at Rs 275.80 apiece on the NSE, compared to a 2.39% climb in the benchmark Nifty 50. The stock has risen 9.57% on a year-to-date basis and by 16.89% over the past 12 months.

Out of the seven analysts tracking the company, five have a 'buy' rating on the stock, and two suggest a 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 21.5%.