RVNL shares jump 5% as rail PSU emerges as lowest bidder for multiple orders

Shares of Rail Vikas Nigam Ltd (RVNL) rose sharply in Monday's trade after the state-run firm emerged as the lowest bidder for three orders. The stock surged 5.02 per cent to hit a day high of Rs 265.65 over its previous close of Rs 252.95.

The company, in an exchange filing, said, "Salasar Techno Engineering Ltd and RVNL emerges as the lowest bidder from Energy Development Corporation Limited (EDCL) for Plant Design, Supply and Installation of 45.8 km, ll0Kv Double Circuit Rukarara-Huye-Gisagara Transmission Lines." The total contract value is around $7.15 million. RVNL has a 49 per cent stake in the joint venture and Salasar Techno owned the rest.

RVNL also emerged as the lowest bidder for a Northeast Frontier Railway project, valued at Rs 95.95 crore. The project involves engineering, procurement, construction of design, supply, erection, testing and commissioning of 25 kV and 50 Hz, single phase, AC, electrification OHE and TSS works of Araria - Thakurganj new line section in the NF railway.

In addition, the rail PSU has surfaced as the lowest bidder for design, supply, erection, testing and commissioning for upgradation of electric traction system from 1x25 KV to 2x25 KV traction system for Kharagpur-Bhadrak section of the South Eastern Railway to meet the 3,000 MT loading target. This contract is worth Rs 148.26 crore.

On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 100-, 150-day and 200-day simple moving averages (SMAs) but lower than the 50-day SMA. The counter's 14-day relative strength index (RSI) came at 56.83. A level below 30 is defined as oversold while a value above 70 is considered overbought.

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, project and contract management.