RITES shares soar over 13% ahead of bonus issue announcement

Shares of railway PSU firm RITES soared over 13% to Rs 754.4 in Monday's trade on the BSE after the firm announced that its board of directors will consider issuing bonus shares for shareholders in its upcoming board meeting on July 31.

In an exchange filing, RITES stated, "The Board of Directors of the Company may also consider the proposal for issuance of Bonus shares in the aforesaid Board Meeting." The meeting will also address the approval of standalone and consolidated unaudited financial results for the quarter ended June 30, 2024, and the consideration of payment of the first interim dividend for FY 2024-25, if any.

Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.


Previously, RITES issued a bonus on August 8, 2019, in the ratio of 1:4, according to Trendlyne data.

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At 10:05 am the scrip was trading 11.5% higher at Rs 743.8 on the BSE. Meanwhile, the stock has also surged 48% year-to-date, and 183% in the past two years.

In Q4 FY24, state-owned RITES reported a marginal fall of 1.59% in its consolidated net profit to Rs 136.67 crore on account of a fall in revenues. It had posted a profit of Rs 138.89 crore for the year-ago period.

Meanwhile, the company's total income fell to Rs 667.68 crore in the January-March period from Rs 705.63 crore in the same period a year ago.

According to Trendlyne data, the target price for the stock is Rs 755. The consensus recommendation from four analysts for the stock is a 'Buy'.

In technical terms, the relative strength index (RSI) of the stock is currently at 38.4. An RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. Additionally, the MACD is at -6.1, which is below its signal and center line. This is a strong bearish indicator.

Moreover, RITES stock price stood higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).

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