Rail Vikas Nigam shares pick up steam; Soar over 7% today!

Despite struggling in the early trades, Indian headline indices experienced a closing rally and eventually rose strongly as a result of significant gains in the FMCG and banking sectors. The BSE Sensex soared 0.71% to 67,571 level at the close. The Nifty 50 index climbed 0.74% to a level of 19,979. 

Rail Vikas Nigam Ltd, one of the top BSE Smallcap gainers today, drew attention from investors as its shares traded on a 5-fold surge in volume and soared more than 7% to an intraday high of Rs 129.80 per share on the BSE. Shares have skyrocketed more than 65% in the last three months, giving outstanding returns of over 320% in just one year! 

The company recently received LOA for the rehabilitation and upgrade of the Chandikhole-Paradip Section of NH-53 in Odisha from 4 to 8 lanes, with a project cost of roughly Rs 808.5 crore. It was also the lowest bidder (L1) from Maharashtra Metro Rail Corporation Limited (MMRCL) for the design and construction of an elevated metro viaduct with an estimated cost of around Rs 395 crore. 

Taking into account the company’s quarterly performance, on a consolidated basis, it reported a decline of 11.15% from Rs 6,437.54 crore registered in Q4FY22, recording total revenue of Rs 5,719.83 crore in Q4FY23. When comparing the net profit for the fourth quarter of FY23 to the same quarter last year, it fell 5% from Rs 378.16 crore to Rs 359.25 crore.     

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.  

Keep a close eye on this stock for the upcoming 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.