RVNL shares climb over 4% on bagging Rs 1098 crore order from HPSEBL

The stock’s 52-week low and high prices are Rs 33 and Rs 199.35, respectively. RVNL is a mid-cap company with a market capitalisation of Rs 36,112.55 crore.

The awarded order has to be executed in 24 months. Shares of the company in the past one year have delivered a stupendous return to the tune of 426 per cent. (Image credit: Reuters)

Shares of Navratna PSU, Rail Vikas Nigam Ltd. (RVNL), rallied over 4 per cent in the early trade on Tuesday, October 3, to touch the day’s high of Rs 176.6 apiece on the BSE. The stock in the previous trading session (Friday) ended at Rs 169.4 apiece. The gains in the stock of the civil construction firm came after the company, in an exchange filing, announced that it had been awarded an order worth Rs 1,098 crore from Himachal Pradesh State Electricity Board Limited (HPSEBL).

“Rail Vikas Nigam Limited emerges as the lowest bidder for the development of distribution infrastructure in the South Zone of Himachal Pradesh under the Revamped Reforms-based and Results-Linked Distribution Sector Scheme (Loss Reduction Works),” said the company in the filing.

The awarded order has to be executed in 24 months. Shares of the company in the past one year have delivered a stupendous return to the tune of 426 per cent. This suggests high volatility in the counter during the period, with a beta of over 1 at 1.14.

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The stock’s 52-week low and high prices are Rs 33 and Rs 199.35, respectively. RVNL is a mid-cap company with a market capitalisation of Rs 36,112.55 crore.

The stock of RVNL commands a low valuation with a trailing twelve-month (TTM) price-to-earnings ratio of 24.7, which is well below the industry average.

As per Trendlyne, the consensus recommendation for the stock from 1 analyst is Strong Buy.

In the June quarter of the current financial year, the company recorded a total revenue of Rs 5,853 crore. Net profit at the company came in at Rs 343 crore during the Q1 period, versus Rs 359 crore in the quarter ended March. RVNL functions as an extended arm of the Ministry of Railways, working for and on behalf of the MoR. It is empowered to undertake project development, resource mobilisation, etc. directly, by creating project-specific SPVs, or by any other financing structure.

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