RVNL shares in focus as firm receives Rs 311 crore order

Shares of state-run Rail Vikas Nigam Ltd (RVNL) will be in focus on Wednesday as the firm has received a letter of acceptance for a Rs 311 crore order from the Central Railway to build tunnels and bridges in Madhya Pradesh.

The multibagger railway stock ended 0.95% lower at Rs 156.90 on BSE in the previous session. Total 3.80 lakh shares of RVNL changed hands amounting to a turnover of Rs 5.98 crore. Market cap of RVNL stood at Rs 32,714 crore on BSE. RVNL shares have a one-year beta of 1.4, indicating very high volatility during the period.

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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 10 day, 100 day, 150 day and 200 day but lower than the 5 day, 20 day, 30 day, 50 day moving averages.

The company will build 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, said RVNL on Monday.

The contract will be executed in 18 months.

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.