Shares of Rail Vikas Nigam Ltd (RVNL) recovered but were still trading in the red in Monday's trade after the railway company emerged as lowest bidder for a Rs 180 crore order.
In a stock exchange filing, RVNL said it emerged as the lowest bidder (L1) from East Centra Railway for design, supply, erection, testing and commissioning of 2x25KV feeder line along the track with 25KV OHE modification works to meet 3000 mt loading target for UP and DN line of Garwa Road- Mahadiya section of Dhanbad Division under EC Railway.
The cost of work is Rs 180,00,96,810.08, including applicable taxes, the company said.
Following the development, the stock recovered from day's low of Rs 516.05, and was trading 1 per cent lower at Rs 520.75 on BSE. The railway PSU has continued to sign memorandum of associations (MoUs), but is awaiting order finalisations, Antique Stock Broking said recently.
The railway PSU's order book is dominated by nomination orders, the brokerage said adding that a lot of opportunities are still in the planning stage and the stock valuation (EPC business) at 62 times H1FY27 EPS is making it apprehensive about scope of stock price appreciation from the prevailing market price.
As per Antique, there could be a slight delay in the Vande Bharat project execution, as the order is undergoing scope change, which implies a revision in design and cost. RVNL has investments of Rs 2,500 crore, but as per norms it can reduce its stake below 26 per cent and this is delaying conclusion of the monetisation, it said.
The RVNL management has reiterated its FY25 guidance with flattish revenue on YoY basis, implying growth of 8 per cent over the next three quarters. Its order book at Rs 85,000 crore is 4 times trailing 12-month revenues, which excludes the Vande Bharat order.