Should you Accumulate RVNL Stocks? Rail Vikas Nigam Ltd. or RVNL shares were trading higher on Thursday after it received Letter of Award (LoA) from North Western Railway for provision of Automatic Block Signalling on Madar-Sakhun Section (51.13 Kms) of Jaipur Division over North Western. The cost of the project is Rs 63.8 crore.
Last month, the company emerged as L1 bidder for Rs 1,088.49-crore project. RVNL has emerged as the lowest bidder (L1) for the composite contract package in connection for the new BG railway line of the HORC project of the Haryana Rail Infrastructure Development Corporation. The cost of the project is Rs 1,088.49 crore and the project is expected to be executed within 1,460 days.
The composite contract package in connection with new BG Railway Line of HORC project, including, design and construction of twin tunnel using NATM and cut and cover method from 24.880km to 29.580km and design nd installation of ballast less track (excluding supply of rails) from 24.856 km to 29.680 km.
Also, detailed design, supply, installation, testing and commissioning of general electrical services, including supply, erection, testing and commissioning of 11 kV HT/LT power and control cable network, GIS substation (11/0.433) kVA. tunnel lighting system, etc. from km 24.880 to km 29.680.
The President of India has approved the appointment of Shri AK Khandelwal, Principal Executive Director (GS), Railway Board as part-time government director on the board of Rail Vikas Nigam Limited (RVNL) with immediate effect, till he holds the post of Principal Executive Director (GS) of the Railway Board or until further orders, whichever is earlier.
The share touched a 52-week high of Rs 84.15 and a 52-week low of Rs 29 on November 29, 2022 and June 21, 2022, respectively.
In the December quarter of this fiscal, net profit climbed 30.51% to Rs 382.42 crore against Rs 293.01 crore during the previous quarter ended December 2021. Sales stood flat at Rs 5012.09 crore in Q3 against Rs 5049.24 crore during the quarter ended December 2021.
The government holds a majority 78.2% stake in the company as of the December quarter, according to the shareholding pattern available with the exchanges.
According to Trendlyne data, RVNL has an average target price of Rs 42 and the consensus estimate represents a downside of 43.40% from the current levels.
Prabhudas Lilladher has a Buy call on the stock with a target price of Rs 78, indicating an upside potential of 7% from the current market prices. The brokerage recommends stop loss at Rs 64.
RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.
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