Shares of Rail Vikas Nigam Ltd (RVNL) hit their fresh record high on Monday after the railway firm said it has received Letter of Acceptance from Central Railway for “OHE modification work for up-gradation of existing 1 x 25 kV Electric Traction System to 2 x 25 kV AT Feeding System in Wardha-Ballarshah Section in Nagpur division of Central Railway to meet 3000 MT loading target.”
The contract is to be executed within 24 months. The cost of the project is Rs 132.59 crore.
The stock jumped 3.26 per cent to hit an all-time high of Rs 647. The railway stock has gained 151 per cent in the three months and delivered multibagger returns of 247% in 2024 so far.
The railway PSU has been securing new orders and signing meaningful pacts. On July 10, it inked an agreement with IMS Consultancy Pvt Ltd.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said RVNL shares have been rising due to a focus on railway infrastructure spending ahead of the Budget presentation on July 23.
“The stock 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.
On Monday, total 7.38 lakh shares of RVNL changed hands amounting to a turnover of Rs 47.03 crore. Market cap of RVNL climbed to Rs 1.31 lakh crore on BSE. RVNL shares have a one-year beta of 1.5, indicating high volatility during the period.
The stock fell to a 52-week low of Rs 118.75 on July 17 , 2023.
In terms of technicals, the relative strength index (RSI) of RVNL stands at 84.4, signaling it's trading in the overbought zone. Rail Vikas Nigam shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
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.