RVNL shares end 6% higher on order win from Indian Railways

Shares of state-run Rail Vikas Nigam Ltd (RVNL) ended nearly 6% higher on Friday after the firm said it emerged as the lowest bidder (L1) for project worth Rs 191.5 crore from South Eastern Railway. RVNL shares ended 5.77% higher at Rs 409.70 against the previous close of Rs 387.35 on BSE. Market cap of the firm climbed to Rs 85,464 crore.

“The project relates to  design, supply, erection, testing & commissioning of 132 KV Traction Substation, Sectioning post (SPs), and Sub sectioning post (SSPs) in 2x25KV System on Rajkhaswan- Nayagarh-Bolani section of Chakradharpur division of South Eastern Railway to meet 3000MT loading target on EPC mode,” said the firm in a communication  to bourses.

Total 86.14 lakh shares of RVNL changed hands amounting to a high turnover of Rs 350.58 crore. RVNL shares have a one-year beta of 1.5, indicating very high volatility during the period.        

In terms of technicals, the relative strength index (RSI) of RVNL stands at 63.2, signaling it's trading neither in the overbought nor in the oversold 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 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.