RITES shares zoom 6% on signing MoU with DMRC to explore management of metro rail systems

In a filing to the stock exchanges, RITES said that it has signed a memorandum of understanding (MoU) with DMRC for exploring consultancy and operations and management of metro railway systems. This may include rolling stock, depot management, station management and maintenance of railway infrastructure in India and abroad.

The partnership aims at streamlining the process for jointly exploring, identifying, securing, and executing consultancy assignments for operations and management of Metro, light rail transit (LRT), or mass rapid transit systems in India and abroad.

“As a part of this collaboration, DMRC and RITES will work together in tandem, leveraging each other’s strengths and enhancing business capabilities,” the company said in a statement.

After the announcement, the RITES stock jumped as much as 6.2% on Friday to hit an intraday high of ₹721.8 apiece on the National Stock Exchange of India (NSE). Notably, the stock has gained over 41% so far in 2024 and is up almost 87% in the past one year.

RITES is a Navratna public sector company engaged in the transport consultancy and engineering sector in India. Earlier this week, the company announced signing an MoU with Eastern Railway’s Andal Diesel Shed located in the Asansol division in West Bengal.

RITES had said that the agreement with Andal Diesel Shed established a framework for collaboration on major scheduled repairs and maintenance of diesel-electric locomotives owned by the company and other clients at the Andal Diesel Shed facility.

Last month, RITES had also announced signing a contract with the Bangladesh Railways to supply 200 broad-gauge passenger carriages to the country. The company said that the contract was worth around ₹915 crore.

Shares of RITES Ltd were trading 4.14% higher at ₹707.50 apiece on the NSE at 12:45 am.