Shares of RITES Limited advanced over 3 per cent in Monday’s afternoon trade after the company informed bourses that its board will consider buyback of shares at a meeting on September 18 (Friday).

The scrip traded 3.26 per cent higher at Rs 250 at around 2.50 pm (IST), while the benchmark BSE Sensex was down 0.27 per cent at 38,750 at around the same time.

In a BSE filing, RITES said, “...a meeting of the board of directors of the company will be held on Friday to consider the proposal for buyback of the fully paid-up equity shares of the company.”

On a year-to-date basis, shares of RITES have declined nearly 18 per cent till date, while the BSE Sensex retreated nearly 6 per cent during the same period.

IDBI Capital Markets has ‘Buy’ call on REIT with a target price of Rs 300. “RITES established in 1974, is a pioneer in infra consultancy and company is a beneficiary of railway’s capital outlay (rail contribute 65 around to its revenue),” the brokerage said adding the company return on equity (ROE) at 25 per cent (FY20) is one of the highest amongst its peer set.