Multibagger PSU stock rallies 13% in 3 trading sessions on order wins

Market


Shares of Rail Vikas Nigam Ltd (RVNL) rallied more than 4% to 79 apiece on the BSE in Friday’s trading session, extending its surge for the third consecutive session on receiving multiple orders. The stock has gained over 13% in the last three days. 

The company earlier this week announced that it has received orders worth 1,134 crore from the Chennai Metro Rail Limited. “it is hereby informed that “Rail Vikas Nigam Limited (RVNL) has received LOA on 10.01.2023 for “Construction of Elevated Viaduct (Approximate Length of 10 Km), Nine (9) Elevated Metro Stations at Sholinganallur Lake-I, Sri Ponniamman Temple (Sholinganallur Lake-II), Sathyabama University (Semmeancheri-I), Semmeancheri-II, Gandhi Nagar, Navallur, Siruseri, Siruseri SIPCOT-1 and Siruseri SIPCOT-2 and Stabling Viaduct at SIPCOT.”

Further, it also informed on the Letter of Acceptance received from the Southern Railway. On January 5, state-owned RVNL said that it has bagged a project worth 166 crore from Gujarat Metro Rail Corporation (GMRC). The project is expected to be completed within 22 months. 

Rail Vikas Nigam Limited is a PSU company, involved in building rail infrastructure. The company executes projects by raising funds via special purpose vehicle (SPV) route on project specific basis and strategic stakeholders.

The company generally works on a turnkey basis and undertakes the full cycle of project development from conceptualization to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management, etc. and all stages of project execution up to the stage of commissioning of the new railway lines.

The government holds 78.2% stake in the railway company as of September 2022. The PSU Railway stock has given multibagger return of more than 121% in a year’s period, whereas the multibagger stock has surged over 155% during the last six months period alone.

Rail Vikas Nigam shares made their market debut in May 2019 and have rallied about 300% since its listing. The issue, with a price band of 17-19 per share, was subscribed 1.83 times.


Know your inner investor
Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.

Take the test

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less



Source link

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments