Last Update: April 28, 2023, 13:06 IST
Shares of Rail Vikas Nigam Limited (RVNL) climbed 8 per cent in morning trade on Friday as the company announced winning a project worth Rs 121 crore from the North-Central Railway.
The project is for provision of E1-based automatic signaling along with continuous track circuiting and other related works on Jhansi-Gwalior section of Jhansi division of North Central Railway, the construction branch of the Ministry of Railways said in an exchange filing.
Rail Vikas Nigam Limited said the order is to be executed in 18 months.
The Railway PSU has given huge returns to the investors in the last three years. RVNL shares have doubled in value over a period of last one year while the stock has gained more than 500% in a span of three years. The stock has jumped 40 per cent in the last week and over 60 per cent in the last month.
Earlier Siemens, as part of a consortium with Rail Vikas Nigam, had received two separate orders from Gujarat Metro Rail Corporation (GMRCL).
The orders are for Surat Metro Phase 1 (over 40 kms covering 38 stations and 2 depots) and Ahmedabad Metro Phase 2 (over 28 kms covering 23 stations and 1 depot).
RVNL is now a Navratna company
The Finance Ministry on Wednesday granted Navratna Central Public Sector Enterprise (CPSE) status to Rail Vikas Nigam Limited (RVNL). RVNL, a public sector railway company, has been on investors’ radar recently due to strong rally in the stock owing to strong orders.
The term ‘Navratna’ refers to a select group of top performing CPSEs that have been granted greater autonomy and financial powers by the Government of India in recognition of their superior performance.
The term ‘Navratna’, meaning nine gems, is used figuratively to suggest that these companies are like the nine precious gems that shine in the crown of Indian PSEs.
With the inclusion of RVNL in the list, there are 13 Navratna companies.
What should investors do?
“As we know, this time in the budget, railway infrastructure is witnessing highest expenditure, which will help this company to improve margins and growth. Technicals are also looking promising after a breakout above Rs.77. Now the next target is Rs 188 in next 6 months. Keep the stop loss at Rs 75,” said Ravi Singhal, CEO, GCL Broking.
read all latest business news, tax news And stock market update Here
