Shares of RITES jumped over 7% in early trade on Wednesday, December 31, after the company announced that it has secured a $3.60 million (around Rs 30 crore) international order from a Zimbabwe-based entity for the supply of locomotives.
The stock gained strong buying interest as investors reacted positively to the fresh overseas contract, which strengthens RITES’ international order book.
Key details of the order
RITES has received the order from Berhard Development Corporation (Private) Limited, Zimbabwe. The contract involves the supply of In-Service Cape Gauge Diesel Electric Locomotives, which are widely used across southern African railway networks.
The total contract value stands at USD 3.60 million, and the execution timeline for the project is three months, indicating swift delivery and revenue realisation.
Why the order is significant
The latest contract highlights RITES’ growing footprint in international railway projects, especially in Africa, where the company has been expanding its presence across consultancy, engineering and rolling stock supply segments.
The short execution timeline improves visibility on near-term revenues, while the specialised nature of Cape Gauge locomotives reinforces RITES’ technical capabilities in export markets.
Regulatory disclosures
In its regulatory filing, RITES clarified that the transaction is not a related-party deal and has been executed on an arm’s length basis. The company also stated that none of its promoters or group entities have any interest in the Zimbabwe-based client, ensuring full compliance with SEBI’s disclosure norms.
Why RITES stock is in focus
The sharp rise in RITES shares reflects investor optimism around:
- A fresh international order win
- Strengthening of the overseas order pipeline
- Faster execution cycle supporting near-term earnings visibility
With this contract, RITES continues to remain in focus as markets track further updates on its domestic and global infrastructure and railway projects.
