Last update: April 28, 2023, 1:06 p.m. HST
Shares of Rail Vikas Nigam Limited (RVNL) soared 8% on Friday morning as the company announced it had won a Rs 121 crore project from North Central Railways.
The project concerns the provision of E1-based automatic signaling with a continuous track circuit and other associated works on the Jhansi-Gwalior section of the Jhansi division of North Central Railway, the construction branch of the Ministry of Railways has said. iron in a swap folder.
The order is to be fulfilled in 18 months, Rail Vikas Nigam Ltd said.
The rail PSU has given massive returns to investors over the past three years. RVNL shares have doubled in value over the past one-year period, while over the three-year period the stock has jumped over 500%. The stock soared 40% last week and more than 60% last month.
Previously, Siemens, in a consortium with Rail Vikas Nigam, received two separate orders from Gujarat Metro Rail Corporation (GMRCL).
The orders are for Surat Metro Phase 1 (over 40 kilometers covering 38 stations and 2 depots) and Ahmedabad Metro Phase 2 (over 28 kilometers covering 23 stations and 1 depot).
RVNL is now a Navratna company
The Ministry of Finance upgraded Rail Vikas Nigam Limited (RVNL) to Central Navratna Public Sector Enterprise (CPSE) status on Wednesday. RVNL, a public sector rail company, has already been on investors’ radar recently due to a strong rally in the stock led by robust orders.
The term ‘Navratna’ refers to a select group of high performing CPSEs who have been granted greater autonomy and financial powers by the Government of India in recognition of their superior performance.
The term ‘Navratna’, meaning nine jewels, is used metaphorically to suggest that these companies are like the nine precious jewels that shine brightly in the crown of Indian ESPs.
With RVNL added to the list, there are 13 Navratna companies.
What should investors do?
“As we know, this time in the budget, the highest railway infrastructure expenditures are observed, which will help this company to improve its margin and growth. The technicals are also looking great after a break above Rs 77. Now the next target is Rs 188 over the next 6 months. Keep the stop loss at Rs 75,” said Ravi Singhal, CEO of GCL Broking.
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