RVNL Lowest Bidder For Infrastructure Projects Worth Rs 643 Crore In Punjab

Earlier this week, RVNL received a letter of acceptance from South Central Railway for a project worth Rs 625 crore. The order includes engineering, procurement and construction work of Prabhani-Parli doubling project in the state of Maharashtra.

The order is for doubling of track between Parbhani to Parli stations that stretches across 58.06 km, according to the exchange filing released on Tuesday. The project also includes electrification and signaling works.

The domestic project is to be completed within 30 months. This is the second project for doubling of track from South Central Railway in the span of one week.

RVNL stock closed 1.7% lower at Rs 435.8 per share, ahead of the announcement. This compares with a 0.9% advance in the benchmark Nifty 50.

The share price has risen 163% in the last 12 months and 140% year-to-date.

Out of three analysts tracking the company, one maintains a 'buy' rating, one recommends a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a potential downside of 42.1%.