The second half of this financial year has been all about PSU stocks hitting their all-time highs. Government banks, NBFCs, and other government companies have become the new favourite of retail and institutional investors alike.
The news has been flooded with headlines covering improving asset quality, companies securing new contracts and more.
Rail Vikas Nigam Ltd. (RVNL) and Railtel Corporation of India are two railway companies that bagged orders recently.
Rail Vikas Nigam Ltd. (RVNL)
Established in 2002, RVNL is a PSU under the Ministry of Railways. It is responsible for the implementation of infrastructure projects of the Railways Ministry in India. These projects can be the installation of railroad tracks, their upgrade/changes, railway electrification, building major bridges, and setting up workshops or production units.
The government company recently communicated that it has secured a contract for construction of Bhesan Depot and Workshop from Gujarat Metro Rail Corporation (GMRC). The value of the contract is Rs 198 crore.
RVNL won several contracts back to back in the last few months.
Earlier this year, the management said in the FY22 annual report that the company is taking strong measures towards controlling costs and timely project deliveries. The company also requested the government to allow it to leverage its equity base for raising additional funds.
Railtel Corporation of India (RailTel)
Incorporated in September 2000, RailTel is a CPSU directly under the Ministry of Railways. It is engaged in the business of providing ICT services.
It is one of the biggest neutral telecom infrastructure providers in the nation with a Pan-India optic fiber network on exclusive Right of Way (RoW) along railway tracks.
RailTel communicated in an exchange filing that it has bagged the work order from Webel Technology worth Rs 98.56 crore for acting as a system integrator for capacity enhancement of West Bengal State Data Centre (WB-SDC).
As of 14:50 IST, the shares of RailTel were trading for Rs 114.75, down 6.75% for the day. Similarly, RVNL’s stock was down 4.97% to Rs 63.15. The decline is in line with the general market fall on the fears of new Covid variant BF.7.
Written By – Vikalp Mishra
