Last Update: April 13, 2023, 13:07 IST
Should You Accumulate RVNL Stock? Shares of Rail Vikas Nigam Limited or RVNL traded higher on Thursday after receipt of Letter of Award (LOA) from North Western Railway for provision of Automatic Block Signaling on Madar-Sakhun section (51.13 km) of Jaipur Division of North Western Railway Was happening The cost of the project is Rs 63.8 crore.
Last month, the company emerged as the L1 bidder for the Rs 1,088.49 crore project. RVNL has emerged as the lowest bidder (L1) for the overall contract package in respect of new BG railway line of HORC project of Haryana Rail Infrastructure Development Corporation. The cost of the project is Rs 1,088.49 crore and the project is expected to be executed within 1,460 days.
Composite Contract Package in respect of New BG Railway Line of HORC Project, including design and construction of twin tunnel using NATM and cut and cover method from km 24.880 to 29.580 and design and installation of ballastless track (excluding supply of rail) ) is included. 24.856 Km to 29.680 Km.
Also, detailed design, supply, installation, testing and commissioning of general electrical services including supply, erection, testing and commissioning of 11 KV HT/LT power and control cable network, GIS substation (11/0.433) KVA. Tunnel Lighting System etc. from Km 24.880 to Km 29.680.
The President of India has approved the appointment of Shri AK Khandelwal, Principal Executive Director (GS), Railway Board, as part-time Government Director on the Board of Rail Vikas Nigam Limited (RVNL) with immediate effect, till he holds the office of Principal. Don’t imbibe. Executive Director (GS) of Railway Board or until further orders, whichever is earlier.
The stock touched a 52-week high of Rs 84.15 and a 52-week low of Rs 29 on November 29, 2022 and June 21, 2022, respectively.
In the December quarter of this financial year, the net profit increased by 30.51% to Rs 382.42 crore as against Rs 293.01 crore during the previous quarter ended December 2021.
As per the shareholding pattern available with the exchanges, the government holds 78.2% stake in the company as of the December quarter.
As per Trendline data, RVNL has an average target price of Rs 42 and the consensus estimate represents an downside risk of 43.40% from current levels.
Prabhudas Lilladher has a buy rating on the stock with a target price of Rs 78, indicating an upside of 7% from the current market prices. The brokerage has recommended a stop loss of Rs 64.
RVNL is an executive arm of the Indian Railways and works for and on behalf of the Ministry for the projects assigned for execution. It works on a turnkey basis and caters to the entire cycle of project development from concept to commissioning, including phases of design, preparation of estimates, calling and awarding of contracts, project and contract management.
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