Shares of Rail Vikas Nigam (RVNL) soared 15% in intraday trade on Thursday, in an otherwise weak broader market, after the state-owned company said that its joint venture (JV) firm has won an order for the manufacture and maintenance of Vande Bharat trains. The JV of the company and Russia’s CJSC Transmashholding (TMH) have emerged as the lowest bidder for the manufacture and maintenance of 200 lightweight Vande Bharat trains, RVNL said in an exchange filing.
Extending gains for the second day, the shares of RVNL opened 5.8% higher at ₹61.90 against the previous closing price of ₹58.52 on the BSE. During the session so far, the railway stock rallied as much as 15% to hit an intraday high of ₹67.50, while the market capitalisation rose to ₹13,855 crore. On the volume front, there was a surge in buying activities as 51.6 lakh shares changed hands over the counter as compared to the two-week average volume of 10.43 stocks.
RVNL shares currently trades 20% lower than its 52-week high of ₹84.15 touched on November 29, 2022, while it is up 133% against its 52-week low of ₹29 hit on June 21, 2022. The PSU stock has more than doubled in the last one year, from ₹31 on March 2, 2022, to 67.50 intraday today. In the last six month, the multibagger stock zoomed 102%, while it has fallen 11% in three-month period. The counter has been under stress since beginning of the calendar year 2023, falling 3% on year-to-date (YTD) basis. In the last one month, RVNL share price has lost 10%, while it added 1.5% in a week.
In a post market hour release on Wednesday, RVNL said that it has emerged as the Lowest Bidder (L1) for “Manufacturing cum Maintenance of Vande Bharat Trainsets including Up-gradation of the Government Manufacturing Units & Trainset Depots” in JV with Joint Stock Company Metrowagonmash (70%), Joint Stock Company Locomotive Electronic System (5%), and RVNL (25%).
“As per financial opening dated March 1, 2023, the JSC Metrowagonmash-Mytischi-RVNL (JV) has been declared L-1. The total quantity is 200 Trainsets and cost per set is ₹120 crore,” RVNL said in the BSE filing.
Earlier this month, RVNL received a letter of award (LOA) received from M. P. Madhya Kshetra Vidyut Vitaran Co. worth ₹196.77 crore. The project includes the supply, installation, testing and commissioning of a new 11 KV line for bifurcation & interconnection in the Bhopal Region of MPMKVVCL.
Besides, the MiniRatna company, which comes under the Ministry of Railways, last month also bagged a contract worth ₹166.26 crore from Gujarat Metro Rail Corporation (GMRC) with its JV partner ISC Projects. The contract covers 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.
Rail Vikas Nigam (RVNL) was incorporated as Public Sector Undertaking (PSU) on January 24, 2003, with the vision of the then Prime Minister, late Atal Bihari Vajpayee, to bridge the infrastructure deficit on Indian Railways. The company was granted Miniratna status in September 2013 and has also been recommended for Navaratna status by MoR. The company made its stock market debut in April 2019 after the disinvestment of 12.16% stake of the government of India through an initial public offering (IPO). It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management, etc.