Last Updated: April 28, 2023, 13:06 IST
Shares of Rail Vikas Nigam Limited (RVNL) climed 8 Per cent on Friday early morning trade as the company announced winning a Rs 121-crore project from the North-Central Railways.
The project is for the provision of E1-based automatic signaling with continuous track circuiting and other associated works on the Jhansi-Gwalior section of the Jhansi Division of North Central Railway, the construction arm of the rail ministry said in an exchange filing.
The order has to be executed in 18 months, Rail Vikas Nigam Ltd said.
The railway PSU has given massive returns to the investors over the past three years. Shares of RVNL have doubled in value in the past one year period while in the three-year period the stock has surged more than 500%. The stock has zoomed 40 per cent in the past week and over 60 per cent in the past month.
Earlier Siemens, as part of a consortium along with Rail Vikas Nigam, received two separate orders from Gujarat Metro Rail Corporation (GMRCL).
The orders are for Surat Metro Phase 1 (over 40 kilometres covering 38 stations and 2 depots) and Ahmedabad Metro Phase 2 (over 28 kilometres covering 23 stations and 1 depot).
RVNL is now a Navratna company
The Ministry of Finance elevated Rail Vikas Nigam Limited (RVNL) to the status of a Navratna Central Public Sector Enterprise (CPSE) on Wednesday. RVNL, a public-sector railway company, has already been on investors’ radar recently because of a strong rally in the stock led by robust orders.
The term ‘Navratna’ refers to a select group of top-performing CPSEs that have been granted greater autonomy and financial powers by the Indian government in recognition of their superior performance.
The term ‘Navratna’, meaning nine gems, is used metaphorically to suggest that these companies are like the nine precious gems that shine brightly in the crown of Indian PSEs.
With RVNL added to the list, there are 13 Navratna companies.
What Should Investors Do?
“As we know, this time in the Budget, the highest railway infrastructure spending is seen which will help this company improve margin and growth. Technicals also look great after breakout above Rs 77. Now, the next target is Rs 188 in the next 6 months. Keep stop loss at Rs 75,” said Ravi Singhal, CEO of GCL Broking.