Shares of state-run Rail Vikas Nigam Ltd (RVNL) rose nearly 4% in early deals after the firm received a letter of acceptance for a Rs 311 crore order from the Central Railway to build tunnels and bridges in Madhya Pradesh. RVNL shares surged 3.82% to Rs 162.90 on BSE in early trade. Total 5.07 lakh shares of RVNL changed hands amounting to a turnover of Rs 8.17 crore. Market cap of RVNL stood at Rs 33,506 crore on BSE. RVNL shares have a one-year beta of 1.4, indicating very high volatility during the period.
In terms of technicals, the relative strength index (RSI) of RVNL stands at 47.7, signaling it's trading neither in the overbought nor in the oversold zone. Rail Vikas Nigam stock stands higher than the 5 day, 10 day, 20 day, 100 day, 150 day and 200 day but lower than the 30 day and 50 day moving averages.
RVNL said it would construct four tunnels of 1.6 km, with ballastless track, earthwork in formation and 28 bridges, along with the supply of stone ballast, track linking, side drain retaining wall, etc., in the Dharakoh Maramjhiri section in connection with a third line.
The contract will be executed in 18 months.
The firm logged a 3.4% rise in profit at Rs 394.3 crore in Q2 against Rs 381.2 crore in the year-ago period. Net profit rose 15% sequentially from Rs 343 crore. Revenue climbed marginally to Rs 4,914.3 crore in Q2 against Rs 4,908.9 crore in the preceding year. Income from other operations rose 33% year-on-year to Rs 296 crore.
Earnings before interest, taxes, depreciation, and amortisation or EBITDA fell 5.6% to Rs 298.3 crore in the September 2023 quarter against Rs 315.9 crore in the September quarter of the previous fiscal.
About the company
RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. 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, project and contract management.
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