RITES Share Price Jumps After Signing Strategic Deal with Hindustan Copper

RITES Shares Surge Nearly 3% After Signing Strategic Deal with Hindustan Copper

RITES share price gained nearly 3% on Monday, June 9, 2025, after the company announced a significant partnership with Hindustan Copper Limited (HCL). This move is being viewed as a strong step towards building India’s critical minerals supply chain, fueling both domestic and international ambitions in the mining and infrastructure sectors.

📈 RITES Stock Performance Today

Following the announcement, RITES shares surged as high as ₹306.55 apiece on the NSE, registering a 2.13% intraday jump. The surge in share price came amid investor optimism about the company’s entry into the critical minerals and mining logistics space.

Over the past five trading sessions, RITES stock has rallied by almost 8%. On a one-month basis, the stock has shown exceptional performance with a gain of over 40%. However, year-to-date (YTD), the stock is up by 2.54%.

🤝 Strategic MoU with Hindustan Copper

RITES, a government-owned engineering and transport consultancy firm, signed a Memorandum of Understanding (MoU) with Hindustan Copper Ltd to jointly develop and support the supply chain for critical minerals and metals. The collaboration spans activities such as:

• Exploration and extraction of critical minerals
• Refining and production activities
• Participation in mineral block auctions
• Development of mining infrastructure

This strategic alliance will cover both domestic and overseas operations and aims to create a self-reliant value chain that aligns with India’s mineral security goals.

🏗 RITES' Contribution to the Partnership

As per the agreement, RITES will offer end-to-end consultancy and logistics services to support Hindustan Copper’s expansion. This includes:

• Project planning and execution
• Transport infrastructure development
• Multimodal transport logistics
• Rolling stock support and advisory

The company stated, “This strategic partnership aims to build an integrated, self-reliant mineral value chain that supports India’s critical mineral security, fosters sustainable growth, and strengthens the nation’s economic resilience.”

🏭 About Hindustan Copper Ltd (HCL)

Hindustan Copper is a vertically integrated copper producer under the Ministry of Mines. It carries out the full spectrum of copper production, including:

• Mining
• Ore beneficiation
• Smelting and refining
• Manufacturing copper wire rods

HCL operates production facilities across several Indian states, including Madhya Pradesh, Rajasthan, Jharkhand, Gujarat, and Maharashtra.

📊 RITES Q4 and FY24 Financial Highlights

Despite today’s rally, RITES' recent financial results showed a decline in earnings for Q4 and FY24:

• Q4 Net Profit: ₹137 crore (down 1.4% YoY)
• Q4 Revenue: ₹668 crore (down 5.4% YoY)
• EBITDA: ₹178 crore (down 6.8% YoY)
• EBITDA Margin: 27.7% (vs 27.8% YoY)

For the full year FY24:

• Net Profit: ₹495 crore (down 13.3% YoY)
• Total Revenue: ₹2,539 crore (down 7% YoY)
• EBITDA: ₹650 crore (down 13% YoY)
• EBITDA Margin: 26.5% (vs 28.4% YoY)
• Order Book: ₹5,690 crore (as of March 31, 2024)

📅 RITES Share Price History & Key Levels

The company has seen notable volatility in its stock price in the past year:

• 52-Week High: ₹398.45 (hit on July 8, 2024)
• 52-Week Low: ₹192.40 (hit on March 3, 2025)
• Market Cap: ₹14,555.09 crore

🔍 Analyst Outlook

Despite a weaker financial performance in FY24, analysts see this new deal as a major growth opportunity. By leveraging its transportation and logistics expertise in the minerals and mining sector, RITES is strategically diversifying its portfolio, which may lead to long-term value creation.

Market watchers will keep a close eye on execution timelines, future order wins, and progress in mineral exploration under this collaboration.

📌 Final Thoughts

This deal comes at a time when India is pushing for Atmanirbhar Bharat (self-reliant India) in critical sectors, including rare earth and industrial metals. The RITES-Hindustan Copper partnership is well-aligned with that national vision and offers a new growth trajectory for the transport infrastructure firm.

Disclaimer: This blog post is for informational purposes only and should not be considered investment advice. Please consult your financial advisor before making any investment decisions.