Rail Vikas Nigam on the fast track, bags Rs 311 crore Central Railways project!

Indian headline indices opened the session with a lackluster performance, despite upbeat investor sentiment prevailing across various sectors. Indices experienced notable upward momentum driven by substantial gains in the oil & gas, energy, utilities, information technology, and healthcare sectors. With 1,993 shares rising on the BSE and 1,053 shares declining, the advance-decline ratio strongly remained in favour of advances.

Rail Vikas Nigam Ltd garnered attention as it revealed securing a Letter of Acceptance (LOA) from the Central Railway, amounting to Rs 311 crore. The assigned tasks encompass the construction of tunnels, earthwork in formation, the building of significant major and minor bridges, the supply of stone ballast, track linking, side drain construction, and retaining wall installation. The stipulated timeframe for project execution is set at 18 months.

The company continues to make headlines by consistently securing substantial work orders. Notable instances include receiving orders of Rs 246 crore and Rs 174 crore from the Vadodara division of Western Railways, as well as a Rs 395 crore order from the Maharashtra Metro Rail Corporation in October.

The Government of India incorporated Rail Vikas Nigam Ltd in 2003, and it is in the business of putting various rail infrastructure projects, such as doubling, gauge conversion, new lines, railway electrification, significant bridges, workshops and production units, into action. According to the concession agreement made with the Ministry of Railway, it also shares freight revenue with the railways.

The shares have exhibited a remarkable surge of around 135% year-to-date, translating into an impressive return of over 150% for investors in the past year. Following a robust rally, the shares are currently trading within a narrow range at Rs 160 per share, having reached a 52-week high of Rs 199.35 on the BSE.

Keep a close eye on this stock for the upcoming trading sessions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.