Shares of Rail Vikas Nigam Ltd (RVNL), the infrastructure arm of the Ministry of Railways, continued their rally for the second straight session on Tuesday as investors cheered a series of order wins. The market sentiment was also lifted after the Department of Public Enterprises granted the ‘Navratna’ status to the PSU company. With this, RVNL became the 13th Navratna amongst the Central Public Sector Enterprises (CPSEs), which is likely to boost its financial autonomy. The CPSEs are allowed to invest up to ₹1,000 crore without seeking approval from the government.

Of late, the stock has been on buyers' radar and hitting fresh highs on the back of its significant execution capabilities in the railway segment and its strong order book. On Tuesday, RVNL shares opened 3.4% higher at ₹111.30 against the previous closing price of ₹107.64 on the BSE. Extending early gains, the railway stock surged 10% to hit a fresh all-time high of ₹118.40, while its market capitalisation climbed to ₹24,687 crore. On the volume front, there was a surge in buying as 103 lakh shares changed hands over the counter as compared to the two-week average volume of 70.58 lakh shares.

RVNL's share price has risen more than 300% in the last 11 months, rebounding from its 52-week low of ₹29 touched on June 21, 2022. In the last six sessions, the stock has zoomed as much as 53%, while it rose 57% in a month. In the last one year, the multibagger stock has delivered 252% returns to its shareholders, while it jumped nearly 200% in the six-month period. On the year-to-date (YTD) basis, the counter has gained nearly 73%.

In an exchange filing on Monday, RVNL said that RVNL-SCC joint venture (JV) emerged as the lowest bidder (L1) for the Mahi Bajaj Sagar Project, Banswara, Rajasthan. The contract includes planning, design and construction of main canal and structures including associated distribution system to provide irrigation facility to 41,903 hectare area through piped irrigation network for upper high-level canal of Mahi Bajaj Sagar Project, Banswara on Engineering, Procurement and Construction (EPC) single responsibility turnkey basis.

The cost of the project is ₹2,249 crore and the time period for the completion of the order is 42 months.

Earlier 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).  

The project order worth ₹132 crore from Madhya Pradesh Poorv Kshetra Vidyut Vitran covers supply, installation, testing and commissioning of 11 KV line associated works such as 11 KV line Bifurcation, 11 KV line Interconnection, 11 KV line Conductor augmentation, LT AB Cabling augmentation and conversion of LT Bare conductor to AB cabling in Sagar, Damoh, Chhatarpur, Panna, Tikamgarh, Sidhi and Singrauli Circles (Package-12) of MPPKVCL, Jabalpur.

Meanwhile, the company has bagged contracts worth ₹3,146 crore for three underground packages from CMRL. This includes construction of five UG Stations at KMC (Kilapauk), Sterling Road, Nungambakkam, Gemini (Anna Flyover), thousand lights and thousand lights cross over box and works other than Diaphragm wall of Two UG Stations at Royapettah Chetpet Metro in C3 of CMRL phase-II Project.

Besides, the company has to construct four underground stations at Dr. Radhakrishan Salai, Thirumayilai, Mandaiveli and Adyar Junction and two cross passage shafts and one emergency escape shaft and works other than Diaphragm wall of one underground stations at Greenways Road Metro in Corridor-3 of CMRL Phase-II Project.

The third package includes construction of three underground stations at adyar Depot, Indira Nagar and Taramani Road Junction (Taramani) & Ramp and works other than Diaphragm wall of one underground station at Thiruvanmiyur Metro in Corridor-3 of CMRL Phase-II Project.

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