Multibagger in six months; RVNL secures significant contracts worth Rs 419 crore

Friday deals concluded on a muted note with both the Sensex and Nifty witnessing a moderate decline of 0.35% and 0.42%, respectively.

Opposing market sentiments, the shares of Rail Vikas Nigam Limited dazzled with an impressive surge of 1%. The company’s current market capitalisation is Rs 35,090.89 crore.

This upward movement was primarily triggered by an announcement made by the company regarding its successful bid for orders valued at Rs 419 crore from Western Railways.

In the latest development, RVNL made a significant stride by securing two substantial contracts. The first contract, awarded to M/s RVNL-MPCC (JV), encompasses an extensive range of civil engineering works. These include earthwork, blanketing, retaining walls, boundary walls, side drains, construction of major and minor bridges, level crossings, and the development of station buildings, platforms, subways, staff quarters, passenger amenities, and various other vital components.

In addition to this comprehensive scope of work, the contract also involves the supply of 50 mm machine-crushed stone ballast and complete track works, including the linkage of tracks. This project is a part of the Gauge Conversion initiative and is set to cover a distance of 22.50 kilometres within the Vadodara Division on the Western Railway. The total value of this contract stands at Rs 174,27,33,879.97.

The second contract, also awarded to M/s RVNL-MPCC (JV), extends the spectrum of civil engineering works. This includes earthwork, blanketing, retaining walls, boundary walls, side drains, major and minor bridges, level crossings, construction of station buildings, platforms, subways covering platforms, staff quarters, passenger amenities, and more.

Apart from these services, this contract includes the supply of 50 mm machine-crushed stone ballast and complete track works, involving the linkage of tracks. This project forms part of the Gauge Conversion program, covering a distance of 37.26 kilometres within the Vadodara Division on the Western Railway. The total value of this contract is recorded at Rs 245,71,80,973.69.

These recent contract awards not only underscore RVNL’s capability and presence in the rail infrastructure sector but also contribute to the development and enhancement of the Indian railway network.

About Rail Vikas Nigam Limited:

Established in 2003 under the aegis of the Government of India, Rail Vikas Nigam Limited has been actively engaged in executing a diverse array of rail infrastructure projects. These projects are commissioned by the Ministry of Railways and encompass a wide spectrum of activities that play a pivotal role in the development and modernization of India’s railway network.

RVNL’s portfolio includes projects related to the doubling of rail tracks, gauge conversion, the establishment of new railway lines, electrification of existing rail networks, construction of major bridges, workshops, production units, and more. Furthermore, the company is actively involved in revenue-sharing arrangements with Indian Railways, as per the concession agreements signed with the Ministry of Railways.

Furthermore, the stock has witnessed significant buying activity as it has given multibagger returns of more than 117% in just 6 months.