Shares of RITES jumped up sharply on Wednesday morning going up close to 3% to hit an intraday high of ₹696.85.
What Happened: RITES has entered into a Memorandum of Understanding (MoU) with Eastern Railway’s Andal Diesel Shed for locomotive maintenance. A press release issued on June 11, 2024, revealed that RITES and Andal Diesel Shed have signed a MoU to cooperate on major schedule repair and maintenance of Diesel-Electric Locomotives. The objective of this alliance is to enhance the repair and maintenance procedure for diesel locomotives.
See Also: L&T's SN Subrahmanyan Sees Salary Jump 43% In FY24
Under the terms of the agreement, RITES will be responsible for securing or identifying business prospects for higher schedule repairs, while Andal Diesel Shed will undertake the maintenance work.
RITES is a Navratna Public Sector Enterprise and is a prominent player in the transport consultancy and engineering sector in India. This collaboration comes at a time when the Indian railway stocks have been on an unstoppable bull run are experiencing a positive trend.
The recent retention of Ashwini Vaishnaw as Railway Minister in the National Democratic Alliance's (NDA) new cabinet has reassured investors of policy continuity.
Price Action: RITES’ share price was up 1.57% to trade at ₹686.25 on Wednesday morning.
Read Next: Brokerages See Tata Motors Shares Breaching ₹1,100 Mark And More
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.