Rail Vikas Nigam Ltd (RVNL) on Monday said it received letter of acceptance (LoA) from East Coast Railway for an order worth Rs 160.08 crore. "RVNL has received Letter of Acceptance from East Coast Railway for provision of Automatic Block Signaling system with dual MSDAC and alteration in existing El/Pl/RRI stations in the section of Jakhapura-Nergundi, Khurda Road-Bhusundpur & Bhusundpur-Golanthra over Khurda Road Division of East Coast Railway," the rail PSU stated.
The state-owned firm emerged as the lowest bidder for the above mentioned project last month. RVNL has been securing new orders and signing meaningful pacts.
Recently, it received a LoA from Central Railway for "OHE modification work for upgradation of existing 1x25 kV Electric Traction System to 2x25 kV AT Feeding System in Wardha-Ballarshah Section in Nagpur division to meet 3000 MT loading target."
On the stock-specific front, RVNL shares rose 3.26 per cent to hit an all-time high of Rs 647. The stock was last seen trading 0.34 per cent higher at Rs 628.65. At this price, the multibagger scrip has ascended by 245.13 per cent in 2024 so far.
The stock has been rising due to a focus on railway infrastructure spending ahead of the Budget presentation on July 23, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
"RVNL has been a stellar performer in the past one year. Recent order wins, both domestically and overseas, have been keeping it in the limelight, given an increase in earnings visibility of the rail PSU. Those holding can continue with their positions. Long-term investors should buy this company on every dip," Bathini suggested.
"The counter has seen a remarkable increase, with no apparent signs of a slowdown. It is prudent to consider securing profits by setting a higher stop loss and capitalising on the momentum for as long as it endures," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry to execute projects assigned to it. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, projects and contract management.
As of March 2024, the government held a 72.84 per cent stake in the rail PSU.