Rail Vikas Nigam secures lowest bidder status for multiple projects valued at Rs 256 cr

After initially opening the session with significant gains, the Indian benchmark indices took a downturn and were trading lower. This reversal was primarily driven by losses in the oil & gas, utilities, and banking sectors stocks. At 12:40 pm, the BSE Sensex declined 0.16%, reaching a level of 64,984. The Nifty 50 index fell 0.25% to the 19,299 level.

Despite market weakness, shares of Rail Vikas Nigam Ltd showed resilience, supported by an optimistic outlook stemming from its involvement in significant projects. The company revealed that it has secured the position of Lowest Bidder (L1) for projects with Maharashtra Metro Rail Corporation Limited, valued at Rs 256 crore.

The projects encompass six elevated metro stations, one elevated and one at-grade station, at-grade section formation earthwork, boundary wall and retaining wall, elevated metro track supporting structure for Eco Park Metro station, and a multi-storied building at Tulsi School Land of NMRP Phase-2. The company has also recently announced September 20, 2023, as the record date for the final dividend.

On an intraday basis on Thursday, shares of Rail Vikas Nigam Ltd gained more than 3%, reaching a day’s high of Rs 132.80 per share on the BSE. While shares have maintained a relatively tight trading range over the past three months, they have experienced a remarkable surge of over 125% in the last six months, resulting in exceptional returns of around 300% within a single 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!

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