This railway company will give 1 free share for 1, with dividend, do you have this share?

Bonus Share: Shares of state-run railway company RITES Ltd fell on Wednesday after the company announced its June quarter results. The stock fell even as the company approved a bonus issue of shares.

Shares of RITES Ltd fell over 5% intraday to Rs. 716.80 was reached. The rights issue will issue one bonus share for every share held by the shareholders till the record date. That means the bonus shares will be declared in the ratio of 1:1. The company is going to issue bonus shares for the second time. In 2019 RITES declared one bonus share for every four shares held by shareholders.

The company will also pay dividends

Along with the bonus issue, RITES has also declared a first interim dividend of ₹2.5 per share. The record date for this has been fixed as August 8, 2024. The record date of bonus issue of shares will be intimated in due course.

For the June quarter, RITES reported a 24.4% decline in its net profit at ₹90.4 crore. The company had reported a net profit of ₹ 119.6 crore in the same quarter last year. RITES also reported a 10.8% decline in its revenue to ₹486 crore from ₹544.3 crore in the year-ago period.

Earnings before interest, tax, depreciation and amortization for the quarter fell 34.5% to ₹105.8 crore compared to last year, while margins fell 800 basis points to 21.8% from 29.8% last year.

Stock status

Let us tell you that this stock has increased by 47% so far in 2024. The stock is up 60% in the last 12 months. Its 52 week high is Rs 826.15 and 52 week low is Rs 432.65. Its market cap is Rs. 17,206.82 crores.