Rail Vikas Nigam Limited (RVNL) shares surged by 4% after securing a Letter of Acceptance (LoA) from East Central Railway for a new project worth ₹180 crore. With this boost, many investors may be considering whether to buy shares online in RVNL. Here’s an overview of what’s driving this share price increase.
Project details and scope
Under the terms of the LoA, RVNL will design, supply, test, and commission a 2x25KV feeder line with modifications to the existing 25KV overhead electrification. This project, essential for meeting a 3,000 MT loading target on the Garwa Road-Mahadiya section, spans 229 route kilometres.
This major undertaking underscores RVNL’s expertise in rail infrastructure, providing investors looking to buy shares online with an encouraging indicator of the company’s future growth prospects.
Financial and market implications
At ₹180 crore, this project contributes significantly to RVNL’s project pipeline, positively impacting the company's bottom line and adding long-term value for shareholders. The stock’s current performance reflects positive market sentiment, as it reached an intraday high of ₹486.90. For those exploring options to buy shares online, RVNL’s market capitalisation, recorded at ₹1,00,195.64 crore, shows the company’s standing among large-cap stocks in India.
Consistent growth trajectory
Since its establishment in 2003, RVNL has consistently expanded its project portfolio across the Indian rail sector, catering to central and state governments as well as public sector undertakings. With this latest project, RVNL continues to solidify its role as a primary driver of railway infrastructure in India. For investors who buy shares online, this steady growth trajectory makes RVNL a promising stock to consider, especially within infrastructure-focused portfolios.
Invest safely
Given its growing project portfolio, RVNL stands out as a solid investment for those looking to buy shares online. Its comprehensive range of services, from railway electrification to bridge construction, positions the company well for future growth. Additionally, its recent achievements in securing significant contracts add to its financial stability, making it attractive to both institutional and retail investors.
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