In the first hour of trading on Monday, shares of Rail Vikas Nigam Limited (RVNL) rose by over 10% to hit an all-time high of $80 per share on the BSE. The stock has been surging recently as a result of its price nearly doubling in November and gaining nearly 98% against the 4% rise in the benchmark BSE Sensex.
A PSU business called Rail Vikas Nigam Limited, is engaged in building rail infrastructure. The company undertakes projects by raising funds from strategic stakeholders and project-specific investors through the Special Purpose Vehicle (SPV) method.
The company usually works on a turnkey basis. It manages the entire project development cycle – from concept to commissioning, including all phases of project execution to the phase of commissioning of new railway lines. This includes all stages of design, preparation of estimates, calling and awarding of contracts, project and contract management etc.
The company’s consolidated net profit for the quarter ended September 2022 of the current financial year, or Q2 FY23, rose 36.5% to ₹381 crore from the year-ago quarter, while its sales grew 22% year-on-year (YoY) to ₹4,908.9 crore in the period from July to September.
Meanwhile, business announced earlier this month that Rail Vikas Nigam Limited (RVNL) has been deemed the successful bidder in an international project named as Development of UTF (Uthuru Thila Falhu-Islands) Harbor in Maldives. it’s the government India strategic project. The estimated cost of the project is 1544.6 crores.
In addition, it received a contract from East Central Railway to increase the maximum speed capability of the Pradhankhanta-Bandhua section to 160 kmph. As of September 2022, the government owned 78.2% of the railway firm. The multi-bagger stock has gained nearly 148% in the last six months alone, while the PSU Railways stock has provided multi-bagger returns of over 127% in 2022 (year-to-date or YTD).
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