RITES To Consider Bonus Shares, Interim Dividend In 31 July Board Meeting

Railway PSU firm RITES has said that its board of directors will deliberate on the issuance of bonus shares in its upcoming board meeting on 31 July. This decision will be accompanied by the approval of standalone and consolidated unaudited financial results for the quarter ended 30 June 2024,and the consideration of the first interim dividend for FY 2024-25.

In its exchange filing, RITES revealed that the board might propose bonus shares, allowing existing shareholders to receive additional shares at no extra cost. The distribution of bonus shares will be proportional to the number of shares currently held by shareholders. RITES previously issued a bonus on 8 August 2019, at a ratio of 1:4.

In the fourth quarter of FY24, RITES reported a slight decline in its consolidated net profit, down 1.59 per cent to Rs 136.67 crore from Rs 138.89 crore in the same period last year. The company’s total income also decreased to Rs 667.68 crore from Rs 705.63 crore year-on-year (YoY) for the January-March period.

Despite the recent drop, RITES shares have shown resilience over the past year, delivering a 34 per cent return. However, the stock has seen a downturn of 3 per cent over the last six months and a big 14 per cent decline in the past two weeks. 

Technically, the stock’s relative strength index (RSI) stands at 38.4, indicating that it is not yet in oversold territory. The moving average convergence divergence (MACD) at -6.1 suggests a bearish trend. RITES shares are currently below their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day and 150-day simple moving averages (SMAs) but remain above the 200-day SMAs.