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Multibagger PSU Railway Stock
RITES Ltd, a Multibagger PSU Railway Stock, made headlines on July 2 as its share price surged over 7% in early trade following the announcement of two significant order wins. The stock climbed as much as 7.43%, hitting an intraday high of ₹299.95 on the BSE, showcasing strong buying interest among investors.
This sharp rally underlines renewed investor optimism around the Multibagger PSU Railway Stock, especially after a phase of range-bound movement. RITES, a government-owned enterprise under Indian Railways, is now drawing attention again from both retail and institutional investors.
The primary driver of the share price surge was the announcement of a new $3.6 million export order. RITES confirmed receiving a purchase order from the African Rail Company to supply two fully overhauled ALCO Diesel Electric locomotives. These locomotives, upgraded with Cape Gauge Bogies, modern control systems, traction motors, and air-brake systems, are slated for deployment in Zimbabwe, Mozambique, and Botswana.
The company highlighted that these locomotives will be overhauled at designated facilities and will include warranty support with RITES’ technical teams being deployed onsite. The execution timeline for this project is set at nine months, boosting medium-term visibility for the Multibagger PSU Railway Stock.
In a separate development, the RITES-Aryan Joint Venture received a Letter of Acceptance (LoA) from South Western Railway. This contract is for the redevelopment of Tumakuru Station, covering civil works, signaling and telecom upgrades, and electrical general services.
The project is valued at ₹37.81 crore (excluding GST) and must be completed within 540 days from the agreed project start date. This domestic contract win further solidifies RITES’ reputation as a Multibagger PSU Railway Stock with strong project execution capabilities across geographies.
Market analysts are seeing technical confirmation of bullish sentiment in the RITES stock. According to Anshul Jain, Head of Research at Lakshmishree Investments, RITES has broken out of a 7-week consolidation phase with a strong bullish gap-up.
“The bearish reaction from the ₹320 zone has now been neutralized. A close above ₹300 could pave the way for a fresh rally toward ₹320–₹335 in the short term. The Multibagger PSU Railway Stock is now showing signs of a healthy continuation pattern,” Jain noted.
Let’s take a closer look at how this Multibagger PSU Railway Stock has performed across timeframes:
While the stock has faced pressure over the last year, the recent order wins and improved technical structure have revived optimism around this Multibagger PSU Railway Stock.
Despite a moderate decline in revenue, RITES reported steady financials in its Q4FY25 results:
These figures suggest operational resilience in a challenging economic environment, supporting the long-term thesis for this Multibagger PSU Railway Stock.
RITES Ltd has earned the “multibagger” tag due to its consistent long-term wealth creation. Backed by strong fundamentals and government contracts, it has a robust business model that includes:
Established in 1974 under the Indian Railways, RITES continues to expand its footprint both in India and internationally, increasing its attractiveness as a Multibagger PSU Railway Stock.
While the outlook is promising, investors should also be aware of some risks:
Despite these risks, the fundamentals and project pipeline continue to support the long-term case for RITES as a potential Multibagger PSU Stock.
With two fresh orders in the pipeline, strong technical signals, and a stable financial outlook, RITES looks well-positioned for another leg of growth. For long-term investors looking at infrastructure-linked opportunities, this Multibagger PSU Stock offers an appealing mix of value, growth, and consistency.
That said, it’s important to remain cautious of near-term volatility and rely on certified financial advisors for portfolio decisions.
The RITES stock is now trading around ₹297.50, showing over 6.5% gains in early July 2 trading. With further order wins expected, analysts believe the stock could continue to outperform, making it one of the most watched Multibagger PSU Railway Stocks in the current market environment.
Read more: HDB Financial Services Share
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