Shares of Rail Vikas Nigam Limited (RVNL) closed 1.37 percent lower at Rs 103.17 apiece on BSE on Thursday breaking its gaining streak for consecutive five sessions. The stock has gained more than 50 percent in the last five sessions. The consortium of Siemens and Rail Vikas Nigam bagged two new orders from the Gujarat Metro Rail Corporation on April 21 and since then the stock of this Indian Railway public sector undertaking (PSU) was on a rallying spree.
The RVNL stock jumped 8% to touch a fresh 52-week high of Rs 114.62 a piece on BSE on Wednesday, April 26. The company’s current market capitalisation stands at Rs 21,511 crore.
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 gained 51% in 2023 so far and in the past-one month the value has surged 55%.
An investment of Rs 1 lakh in RVNL stock a year ago would have turned into Rs 2,02,110 today.
As RVNL stock is experiencing a strong upward swing and there is a significant long build-up behind the current price surge, the investors can look for partial profits and ride the trend till the shares reach Rs 120 level per unit, suggest experts, Moneycontrol reported.
Meanwhile, on Wednesday, the Finance Ministry upgraded Rail Vikas Nigam Ltd to Navratna Central Public Sector Enterprise (CPSE). The Ministry of Railways’ CPSE has now become the 13th Navratna company. RVNL was categorised as a Miniratna CPSE.
Incorporated in 2003, RVNL is the infrastructure development arm of the Railway Ministry. The company is engaged in the development and implementation of railway infrastructure projects across the country.