RVNL Secures LoA from Madhya Pradesh Power Transmission Company

Today, RVNL share price experienced a decline of 8.52%. Despite the negative market sentiment, the scrip saw a significant surge in volume, increasing by more than 3.40 times. The company’s current market capitalization stands at Rs 46,443.82 crore.

Recent Development

Rail Vikas Nigam (RVNL) has been awarded a Letter of Award (LoA) from Madhya Pradesh Paschim Kshetra Vidyut Vitran Company to install a new 11 KV line in the Jhabua division.

The order involves supplying, installing, testing, and commissioning the new 11 KV line for bifurcation and interconnection, along with additional 11 KV bays at 33 / 11 KV sub-stations, conductor augmentation for 33 KV & 11 KV lines, additional distribution transformer substations with associated new 11 KV lines, LT line on AB cable, conversion of bare LT line with AB cable, augmentation of LT AB cable, cover conductor for 11 KV line crossing agriculture and non-agriculture feeder, 11 KV and 33 KV bus bar renovation, and other associated works including DPs, TPs, crossings, etc., in Jhabua O&M division (LOT-12) under the revamped reforms-based and results-linked distribution sector scheme.

The total value of the order is Rs 106.4 crore, and it is expected to be completed within 24 months.

About the Company

Rail Vikas Nigam Ltd was established in 2003 by the Government of India. The company’s primary focus is on implementing a wide range of rail infrastructure projects assigned by the Ministry of Railways. These projects include doubling of tracks, gauge conversion, laying new lines, railway electrification, construction of major bridges, establishment of workshops and production units, and sharing of freight revenue with the Railways as per the concession agreements entered into with the Ministry of Railways.

Business Developments

The product-wise breakdown illustrates that MoR Metro Projects account for the majority share at 82.91%, followed by SPVs (Special Purpose Vehicles) at 4.7%. Additionally, there are minor contributions from other categories, including Project at 1.14% and Others at 2.02%.

Shareholding Pattern Analysis

In the December 2023 quarter, the promoters’ holding remained unchanged at 72.84%. However, there was an increase in the holdings of FIIs from 2.32% to 2.59%.

Furthermore, the stock has witnessed significant buying activity, yielding multibagger returns of more than 248% in the last one year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.