15-Nov-2023
2 mins read
In a positive development for Rail Vikas Nigam Limited (RVNL), the company witnessed a surge of 3.82%, with shares reaching Rs 162.90 on the BSE in early trading. The noteworthy uptick follows the company’s successful bid for a Rs 311 crore order from the Central Railway, centred on the construction of tunnels and bridges in Madhya Pradesh.
Project Details and Market Response
RVNL has secured a significant contract from the Central Railway for the construction of four tunnels spanning 1.6 km each, featuring a ballastless track, earthwork in formation, and 28 bridges. The project also includes the supply of stone ballast, track linking, and side drain retaining wall, among other components, for the Dharakoh Maramjhiri section in connection with a third railway line. The entire undertaking is expected to be completed within 18 months. The positive market response is evident, with 5.07 lakh shares of RVNL changing hands, amounting to a turnover of Rs 8.17 crore. As of now, the market capitalization of RVNL stands at Rs 33,506 crore on the BSE.
About Rail Vikas Nigam Limited
As an executing arm of Indian Railways, RVNL operates on a turnkey basis, managing the entire project development cycle, from conceptualization to commissioning. The company works on behalf of the Ministry, handling projects assigned for execution with responsibilities encompassing design, contract management, and overall project execution.
Financial Performance and Outlook
In its recent financial report, RVNL reported a 3.4% increase in profit at Rs 394.3 crore for the second quarter, compared to Rs 381.2 crore in the corresponding period last year. Sequentially, net profit saw a 15% rise from Rs 343 crore. Although revenue showed a marginal increase to Rs 4,914.3 crore in Q2 FY24, EBITDA experienced a 5.6% decline to Rs 298.3 crore.
Market Performance and Technical Indicators
From a technical perspective, the Relative Strength Index (RSI) for RVNL is at 47.7, signalling a position that neither falls into the overbought nor oversold zones. The one-year beta of RVNL stands at 1.4, indicating a notably high level of volatility during this period. Except the 30-day and 50-day moving averages, where it lagged, the stock exceeded its 5-day, 10-day, 20-day, 100-day, 150-day and 200-day moving averages.