Shares of Rail Vikas Nigam Limited (RVNL) witnessed a 4% surge during early trading on Tuesday following the company’s announcement of securing a ₹294.94 crore Letter of Acceptance (LoA) from South Central Railway. The development has drawn significant attention from investors, reaffirming RVNL’s position as a key player in India’s railway infrastructure.
This recent performance highlights why many continue to view RVNL as a promising opportunity to invest in stocks.
RVNL secures ₹295 crore contract
The LoA pertains to an Engineering Procurement Construction (EPC) contract for doubling the track between Navipet Station (Km 446.900) and Indalvai Station (Km 482.900), covering a span of 33.70 km. The project also includes electrification and signalling works, excluding a 2.3 km stretch at Nizamabad Yard. This initiative forms part of the Mudkhed-Medchal Doubling Project in Telangana.
In its official filing with the stock exchange, RVNL highlighted the significance of this project in advancing regional rail connectivity and efficiency.
About RVNL and its market impact
Incorporated in 2003, RVNL is a government-owned enterprise tasked with developing rail infrastructure across India. Its diverse portfolio includes projects like doubling tracks, electrification, new line development, gauge conversion, and more. The company collaborates with Indian Railways, central and state ministries, and other public sector units, offering turnkey solutions from project development to financing and implementation.
RVNL’s market capitalisation stands at an impressive ₹89,697.56 crore as of November 19, 2024. Its stock has demonstrated robust performance over the past year, yielding a remarkable 135.91% return year-to-date.
Stock performance on November 19
At around 11:02 AM, RVNL shares were trading at ₹430.50 on the National Stock Exchange (NSE), marking a 3.44% rise from the previous close of ₹416.20. Earlier in the session, the stock touched a high of ₹431.55, representing a 3.68% increase. A total of 2.24 million shares worth approximately ₹95.97 crore exchanged hands across NSE and BSE during early trade.
RVNL’s 52-week price range reflects its growth potential, with a low of ₹162.10 and a high of ₹647 on the NSE.
Broader market sentiment
RVNL’s positive momentum aligns with an overall bullish trend in the equity market on Tuesday. The BSE Sensex climbed 1.17%, trading at 78,240.63, while the NSE Nifty 50 rose 1.15%, reaching 23,722.95.
Why investors are optimistic about RVNL
The latest contract adds to RVNL’s growing portfolio of high-value projects, reinforcing its reputation as a reliable rail infrastructure developer. Analysts highlight that RVNL’s consistent project wins and steady financial performance make it an attractive option for those looking to invest in stocks.
With its strong fundamentals, expanding project pipeline, and government backing, RVNL continues to be a favourite among investors seeking long-term growth opportunities in the infrastructure sector.
For android only