Rail Vikas Nigam shares soar as JV secures lowest bid for Rs 174 crore project

In the opening trades of the session, Indian benchmark indices exhibited a steady start, but they subsequently gained momentum, primarily attributed to substantial gains in oil & gas, energy, consumer durables and information technology sectors. Meanwhile, BSE Utilities and BSE Metals were the only sectors experiencing declines. Broader indices significantly outperformed the main indices. 

The shares of Rail Vikas Nigam Ltd garnered attention due to their positive outlook, driven by the company’s active participation in substantial projects. On an intraday basis on Tuesday, shares of Rail Vikas Nigam Ltd experienced a notable rise of more than 5% in the opening trades, reaching a day’s high at Rs 163, which is in close proximity to its 52-week high of Rs 163.45 per share on the BSE.  

The company made an announcement stating that RVNL-MPCC JV (74:26) has secured the position of the lowest bidder for a significant project worth Rs 174 crore in the Vadodara Division of Western Railways. The project is anticipated to be completed within a timeframe of two years. In the recent quarter, the company has achieved remarkable growth in both its revenue and net profit. Furthermore, it has recently declared September 20, 2023, as the record date for its final dividend. 

Shares have witnessed an impressive surge of more than 26% in the past month alone, delivering multibagger returns of over 380% in just one year. 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.