Shares of Rail Vikas Nigam (RVNL), the infrastructure arm of Indian Railways, hit a 5% upper circuit for the second consecutive session on Friday, in an otherwise weak broader market, on the back of strong volume. The PSU railways stock has risen as much as 13% in the last three trading days after the company announced it secured multiple orders worth ₹1,173 crore from Chennai Metro Rail and Southern Railway. It has won a Chennai Metro Rail project order worth ₹1,134 crore and ₹38.97 crore order from Southern Railway.
Extending its gaining streak for the third straight session, RVNL shares opened 2.6% higher at ₹77.80 against the previous closing price of ₹75.80 on the BSE. During the session so far, the stock gained as much as 5% to hit an intraday high of ₹79.55, while the market capitalisation climbed to ₹16,586 crore. The midcap stock has risen 174% in the last eleven months, from its 52-week low of ₹29 on February 24, 2022. It touched a 52-week high of ₹84.15 on November 29, 2022.
RVNL shares have turned into multibagger stock in the last one year, delivering 123% return to its shareholders in 12 months. The stock has soared 157% in the past six months, while it gained 10% in a month. The stock touched a 52-week high of ₹84.15 touched on November 29, 2022. The current market capitalisation of the railway stock stands at ₹16,586 crore.
In an exchange filing on January 12, Rail Vikas Nigam said that it has received a letter of award (LoA) from Southern Railway for provision of automatic block signalling in the Taduku-Renigunta section in the Southern Railway. The project cost is ₹38.97 crore and the deadline for completion of the work is 15 months.
On January 11, the company informed the exchanges that it has secured an order worth ₹1,134 crore from Chennai Metro Rail Limited for construction of elevated viaduct (Approximate Length of 10 Km), nine elevated metro stations at Sholinganallur Lake-I, Sri Ponniamman Temple (Sholinganallur Lake-II), Sathyabama University (Semmeancheri-I), Semmeancheri-II, Gandhi Nagar, Navallur, Siruseri, Siruseri SIPCOT-1 and Siruseri SIPCOT-2, and Stabling Viaduct at SIPCOT. The timeline for execution of the project is 22 months, the Mini-Ratna company said.
Earlier this month, RVNL had bagged a contract worth ₹166.26 crore from Gujarat Metro Rail Corporation (GMRC). In a BSE filing on January 5, the company said that the joint venture between RVNL-ISC Projects received a letter of award for the design, supply, installation, testing, and commissioning of ballastless track for Surat Metro Rail Project, Phase-1. The project has to be executed within 22 months.
Last month, the state-owned company had secured a letter of award for the appointment as project implementation agency for the UTF harbour project in Maldives worth ₹1,544.60 crore. Besides, it also received a contract worth ₹198 crore for construction of Bhesan Depot and workshop from Gujarat Metro Rail Corporation (GMRC). The project, which has to be executed within 20 months, covers construction of Bhesan Depot and workshop including DDC, BCC and associated electrical and mechanical (E&M) works under corridor - C2, Bhesan to Saroli, for Surat Metro Rail Project Phase-1, DC 2.