Buyback Proposal of Rites - Angel Broking

Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd

"Rites usually generate good cash flow each year. Mostly, Company used to reward shareholders with dividends as it doesn't need excess cash in the business. One month back the Company paid a final dividend. To further reward shareholders, a meeting of the Board of Directors of the Company will be held on Friday, 18th September, 2020 inter-alia to consider the proposal for Buy Back of the fully paid-up equity shares of the Company. We believe it makes sense for the Company to give out excess cash to shareholders so that it does not put pressure on the Company's return ratios."

Shares of RITES Ltd was last trading in BSE at Rs.251.65 as compared to the previous close of Rs. 242.1. The total number of shares traded during the day was 50606 in over 1439 trades.

The stock hit an intraday high of Rs. 259.3 and intraday low of 243. The net turnover during the day was Rs. 12765275.

Source : Equity Bulls

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