Shares of this large-cap company surged around 10 percent in Wednesday’s trading session after receiving orders worth Rs. 389 crores. In just five trading sessions, the stock has delivered more than 30 percent returns to its shareholders.
Price Movemnet:
With a market capitalization of Rs. 1,20,264 crores, the shares of Rail Vikas Nigam Ltd (RVNL) started Wednesday’s trading session on a higher note at Rs. 560 compared to its previous close of Rs. 542.75.
During the trading session, the shares hit a high of Rs. 598, gaining around 10 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 580 apiece.
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What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had emerged as the lowest bidder (L1) from South Eastern Railway for the design, supply, erection, testing, and commissioning of a 132 KV traction substation, sectioning post (SPs), and sub-sectioning post (SSPs) on the Kharagpur – Bhadrak section of Kharagpur division of South Eastern Railway. The project, costing Rs. 202.87 crores, is scheduled to be finished within 18 months.
Additionally, the PSU company received a Letter of Acceptance (LoA) from Maharashtra Metro Rail Corporation (Nagpur Metro) for constructing 6 elevated metro stations under Reach 2B of NMRP Phase 2.
These stations include Cantonment, Kamptee Police Station, Kamptee Municipal Council, Dragon Palace, Golf Club, and Kanhan River Metro Station. The project, costing Rs.187.34 crores, is scheduled to be finished within 30 months.
Furthermore, RVNL has also signed an MoU with TATWEER Middle East and Africa LLC (TATWEER) for using RVNL’s expertise in the Railway Sector, developing joint capabilities in the design and execution of various Rail based work in MENA Region and European Countries and also for Supply, Design, Implementation and Commissioning of Smart City, Digital Transformation and Professional Engineering Services.
Financials:
Looking at the company’s financial statements, the revenue zoomed by 43 percent from Rs. 4,689.33 crores in the December quarter to Rs. 6,714.01 in the March quarter. In addition, the net profits jumped by 33 percent from Rs. 358.57 crores to Rs. 478.4 crores during the same period.
Order Book:
Rail Vikas Nigam has achieved a significant milestone with its order book reaching around Rs. 85,000 crores, out of this, Rs. 40,000 crores belongs to the bid portion and Rs. 45,000 crores to the nomination portion.
Recent Development:
The railway PSU also crossed Rs. 1 lakh crores in market capitalisation, becoming only the second railway stock after IRFC to achieve this milestone.
Earlier, RVNL had signed an MoU with Delhi Metro Rail Corporation Limited (DMRC) for participation in the upcoming projects in India and abroad as a Project Service Provider for Metro, Railways, High-Speed Rail, Highways, MegaBridges, Tunnels, Institutional Buildings/ Workshops or Depots, S&T works, and Railway Electrification.
Company Profile:
Headquartered in New Delhi, Rail Vikas Nigam was incorporated in 2003. The company is engaged in the business of constructing Rail Infrastructure projects in India.
The company undertakes rail project development and implementation projects as well as provides financial resource mobilization services to its customers spanning various Central and State Government Ministries, departments, etc.
Written By Vaibhav Patil
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