Railway Stock Surges 6% After Announcing Strategic Partnership

RITES share price surged sharply early on Wednesday after the company announced the partnership.

What Happened: RITES has entered into a strategic partnership with AD Ports Group, a global leader in trade, logistics, and industry facilitation. The collaboration, unveiled on Thursday, is designed to stimulate growth in logistics infrastructure development.

A Memorandum of Understanding (MoU) has been inked between the two corporations to look for potential joint ventures and collaborations in key trade and logistics sectors. The MoU is intended to probe opportunities for mutual cooperation in forthcoming projects like IMEEC and infrastructure development areas such as ports, multimodal logistic parks, free trade zones, rail connectivity projects, and logistics infrastructure services.

The announcement helped the stock which was already upbeat on Wednesday, surge further. RITES share price surged up over 6% to hit an intraday high of ₹752.50.

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This strategic partnership comes at a crucial time for RITES Limited. The company’s shares took a hit earlier this month following the announcement of weak third-quarter results. The RITES share price has also been under pressure along with other railway stocks ever since the budget came out.

RITES reported an operating revenue of ₹683 crore for the quarter ended December 2023, a marginal increase from ₹677 crore in the previous fiscal, according to an exchange filing. Its EBITDA for Q3 stood at ₹171 crore, and net profit for the reporting period was ₹129 crore, down from ₹148 crore in the previous fiscal.

Price Action: RITES share price was up 5.86% to trade at ₹745.85 on Wednesday afternoon.

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