Shares of Rail Vikas Nigam Ltd hit a record high of ₹163.45 on Monday, days after the company received orders worth ₹604.19 crore from the Madhya Gujarat Vij Company.
RVNL has received a letter of acceptance for the development of distribution infrastructure work for loss reduction in Vadodara and Dahod districts of Gujarat under the revamped reforms-based and results-linked distribution sector scheme, the company says in two separate stock exchange filings.
Reacting to the development, shares of RVNL jumped as much as 14% in intraday trade to ₹163.45 apiece on the National Stock Exchange (NSE), taking the market cap of the railway public sector enterprise to ₹ 32,161 crore. The counter opened at ₹143 on Monday against its closing price of ₹138.30.
The multi-bagger stock has gained 368% over the past year and 125% on a year-to-date basis. The scrip hit its 52-week low of ₹32.55 on September 2, 2022.
This comes weeks after the Union government said it will divest 5.36% stake -- including a green shoe option of 1.96% -- in railway public sector undertaking. In April, the Department of Public Enterprises granted the ‘Navratna’ status to the PSU. RVNL is the 13th Navratna firm amongst the Central Public Sector Enterprises (CPSEs). CPSEs are allowed to invest up to ₹1,000 crore without seeking approval from the government. On April 29, the company informed the exchanges that it secured two orders worth ₹3,278 crore, one from Madhya Pradesh Poorv Kshetra Vidyut Vitran and the other from Chennai Metro Rail Limited (CMRL).
RVNL was established with the mandate to fast-track implementation of rail infrastructure projects working for and on behalf of the Ministry of Railways as its executing arm. RVNL is executing projects in all the Zonal Railways and 19 states of the country.
In FY23, RVNL crossed the 1000-km commissioning benchmark for New Lines, Doublings and Gauge Conversion. 1343.30 km of project length was commissioned consisting of 119 km of New Line, 925 km of Doubling and 299.3 km of Railway Electrification. These were handed over to Zonal Railways for operations.
Additionally, Railway Electrification of 655 km was also carried out as part of Doubling. During 2022-23, 863.02 km project length was completed including 67.06 km of New Line, 497.88 km of Doubling, 271.12 km of Railway Electrification and 26.96 km of Metropolitan Transport Project (MTP). In addition, Railway Electrification of 334.59 km was also carried out as part of Doubling.
The state-owned entity reported a 15% year-on-year (YoY) jump in consolidated net profit at ₹343 crore for the quarter ended June of the ongoing financial year. Its consolidated revenue increased 20% to ₹4,640.7 crore.
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