RVNL At Life High: Here Are The 5 Reasons Why This Stock Is Rallying And Booming In Indian Railway Space

RVNL At Life High: Here Are The 5 Reasons Why This Stock Is Rallying And Booming In Indian Railway Space

Indian Railways' RVNL carries out projects assigned to it as the ministry's executing arm. Turnkey operations are employed throughout the full project lifecycle.

G R MukeshUpdated: Wednesday, July 10, 2024, 12:27 PM IST
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RVNL's share price has quintupled in a year, share price was hovering around Rs 122.25 on june 10, 2023, since it has risen to Rs 585 per share. from june 10, the share has seen a phenomenal move of 386 per cent in a year.

Indian Railways' RVNL carries out projects assigned to it as the ministry's executing arm. Turnkey operations are employed, and the full project lifecycle; from conceptualization to commissioning, is handled, including design phases, estimate preparation, contract calling and award, and project and contract management.

As of March 2024, the government owned 72.84 per cent of the rail PSU.

LoA from nagpur metro

The Maharashtra Metro Rail Corporation (Nagpur Metro) has sent RVNL Exchange a Letter of Acceptance (LoA) for the construction of six elevated metro stations: namely, Cantonment, Kamptee Police Station, Kamptee Municipal Council, Dragon Palace, Golf Club, and Kanhan River.

According to RVNL, the project will cost Rs 187.34 crore and take 30 months to complete.

Lowest bid for South Eastern Railway

For the design, supply, erection, testing, and commissioning of 132 KV traction substations, sectioning posts (SPs), and sub-sectioning posts (SSPs) in a 2x25KV system on the Kharagpur-Bhadrak section of the Kharagpur division of South Eastern Railway to meet 3000 mt.

RVNL emerged as the lowest bidder from SER HQ Electrical, South Eastern Railway. The project would cost 202.87 crore to complete, and it would take 18 months to complete.

MoU with Tatweer LLC (middle east and africa)

In a separate filing to stock exchanges, RVNL announced that it has inked a Memorandum of Understanding (MoU) with Tatweer Middle East and Africa LLC.

The purpose of the MoU is to leverage RVNL's experience in the railway industry to create collaborative capabilities for the design and implementation of various rail-based projects in the European Union and the MENA region.

Additionally, RVNL would offer professional engineering services, digital transformation, smart city design, implementation, and commissioning assistance.

Lowest Bidder for central railway

On Tuesday, July 2, Rail Vikas Nigam Ltd. (RVNL) declared that it had secured an additional order from Central Railways. The state-owned rail infrastructure major announced in an exchange filing that it had been awarded the lowest bid for the overhead equipment (OHE) modification work.

The work involves upgrading the current 1 x 25-kilovolt electric traction system in the Wardha-Ballarshah section of the Nagpur division of Central Railway to a 2 x 25-kilovolt AT feeding system, in order to meet the loading target of 3,000 MT. The order will be completed in two years at a total cost of Rs 132.59 crore.

MoU with Delhi metro

An Memorandum of Understanding (MoU) has been signed by RVNL and Delhi Metro Rail Corporation Limited (DMRC) to engage in future projects in India.

RVNL overseas as a project service provider for metro, railways, high-speed rail, highways, mega bridges, tunnels, institutional buildings, workshops or depots, S&T works, and railway electrification.

Share Price

The shares of RVNL were trading over Rs 595 per share at a lifetime high price. Today, the share price surged over 9 per cent after the market opening.

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