Rail Vikas Nigam Ltd (RVNL) has successfully bid for a ₹625 crore EPC contract. This contract, awarded by the South Central Railway, involves the doubling of the railway track between Parbhani and Parli stations. This news is particularly relevant for those interested in share market investment, as it highlights RVNL's active role in the rail sector.
RVNL share performance
On the previous trading day, RVNL shares closed at ₹446.50 on the Bombay Stock Exchange (BSE), with a market capitalisation of ₹94,034 crore. Over the past year, RVNL shares have exhibited a beta of 1.5, indicating a higher level of volatility compared to the market.
The current relative strength index (RSI) for RVNL stands at 40.5, suggesting the shares are neither in an overbought nor oversold condition. It is worth noting that RVNL shares are currently trading below their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, and 150-day moving averages but above the 200-day moving average.
Details of the contract
The contract with South Central Railway requires RVNL to complete the work within 30 months. This order includes the electrification and signalling works associated with the doubling project. In a formal statement, RVNL confirmed that it came as the lowest bidder (L1) for the project covering 58.06 km, excluding the Gangakhed yard segment.
About RVNL
As an executing arm of Indian Railways, RVNL is responsible for managing projects on behalf of the Ministry of Railways. The company operates on a turnkey basis, which means it handles the entire project lifecycle. This includes stages such as project conceptualisation, design, estimation, contract award, and management until the project's commissioning.
Key takeaways
This recent contract positions RVNL strongly within the share market investment landscape, reflecting confidence in the railway sector and potential growth in the company’s future.
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