Shares of Rail Vikas Nigam Ltd (RVNL) surged by 4% on October 17 after the public sector company secured a significant project. RVNL emerged as the lowest bidder for a ₹270 crore contract from Maharashtra Metro Rail Corporation, boosting investor confidence in its share market investment potential.
RVNL secures metro project contract
The new project, worth ₹270 crore, involves constructing 10 elevated metro stations across Maharashtra. The construction is set to be completed within 30 months. The stations are divided into two sections:
This contract win reflects RVNL's growing capabilities and enhances its share market investment appeal.
Previous project wins boost investor confidence
Earlier in October, RVNL also won a bid for an East Coast Railway project. The contract focuses on the third and fourth railway lines between Jarapada and Talcher Road, and a new line between Angul and Balram. These lines are part of the MCRL Internal Corridor Phase-I doubling project.
The work includes earthwork, bridge construction, track linking, and other essential rail infrastructure. The company will handle all tasks except station yards in connection with the project.
Strong share market investment performance
RVNL's stock has shown remarkable performance in 2024, rising 162% year-to-date, outpacing Nifty's 14.8% growth. Over the past year, RVNL's share price has increased by 180%, offering substantial returns to investors compared to Nifty's 26% rise during the same period.
RVNL has become an attractive share market investment option for mutual funds and foreign investors. In September, mutual funds purchased 28 lakh shares of RVNL, indicating growing institutional interest. Foreign Institutional Investors (FIIs) also increased their stake, now holding 5.05% of the company’s shares, up from 3.13% in June.
Key takeaways
These developments position RVNL as a top choice for investors looking to diversify their share market investments.
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