RVNL shares in focus as CPSE awarded Navratna status

Shares of Miniratna Rail Vikas Nigam (RVNL) will be in focus on Thursday morning after the central public sector enterprise (CPSE) was awarded Navratna status by the Ministry of Finance. With this, RVNL would become the 13th Navratna among CPSEs.

In a filing to BSE, the company said: "Hon’ble Finance Minister has approved the upgradation of RVNL to Navratna CPSE. RVNL will be the 13th Navratna amongst CPSEs. RVNL is a Ministry of Railways CPSE with an annual turnover of Rs 19,381 crore and net profit of Rs 1,087 crore for the year 2021-22."

The counter on Wednesday witnessed a couple of bulk deals. Hrti Private Limited was seen buying 709,438 RVNL shares at Rs 107.44 apiece. Xtx Markets Llp bought 112,068 RVNL shares at Rs 107.22 apiece.  The scrip settle the day at Rs 104.60, down 0.18 per cent.      

Analysts noted that the ongoing mega push in rail capex will benefit the entire industrials value chain over this decade. Cyclically strong industrial capex along with new-age areas such as EV ecosystem, data centres, metros, wastewater management, warehouse and logistics, defence and smart infra, will continue to drive order inflows especially in low and medium voltage T&D products and relevant equipment suppliers through the next decade, Nuvama Institutional Equities said in a note.

The domestic brokerage noted that Siemens and Alstom have led loco wins so far while Medha, Alstom, BHEL, Titagarh Wagons and RVNL have won trainset tenders, given their strong capabilities and experiences.

RVNL share price: Rail Vikas Nigam rallies 7%; stock extends 4-day gains to 26%. Here's why
 

The recent optimism on the railway-linked stocks has lifted RVNL shares by 41 per cent in the last five trading sessions. A consortium of Russia's CJSC Transmashholding and Rail Vikas Nigam (TMH-RVNL) had in March emerged as the lowest bidder (L1) for the Rs 58,000-crore contract to manufacture and maintain 200 trainsets at Rs 120 crore per unit. RVNL in a filing to stock exchanges on March 31 said it received letter of award for the same from Ministry of Railways.

Recently, the Union Minister Raosaheb Danve said efforts are on to start the Vande Bharat train production by August. Besides, on April 17, Russia news agency TASS quoted TMH will sign the contract by June 1. The contract, TMH said, will pay $1.8 billion for supplying the trains and $2.5 billion for their maintenance over a period of 35 years. Taking into account indexation, the total value of the contract could be as much as $6.5 billion, it had said.

Here's a list of 13 Navratna CPSEs

1. Bharat Electronics Limited

2. Container Corporation of India Limited

3. Engineers India Limited

4. Hindustan Aeronautics Limited

5. Mahanagar Telephone Nigam Limited

6. National Aluminium Company Limited

7. National Buildings Construction Corporation Limited

8. Neyveli Lignite Corporation Limited

9. NMDC Limited

10. Oil India Limited

11. Rashtriya Ispat Nigam Limited

12. Shipping Corporation of India Limited

13. Rail Vikas Nigam

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