RVNL Shares Surge Over 8% On Bagging Four Orders Worth Rs 2,092 Crore

Shares of Rail Vikas Nigam Ltd. jumped over 8% on Monday after it secured four projects worth total Rs 2,092 crore.

The company received a letter of award from the Madhya Pradesh Poorv Kshetra Vidyut Vitaran Co. for a broad consideration of Rs 251 crore. The project includes the supply, installation, test and commissioning of 11 KV line associated works.

It got a second letter of award from the Himachal Pradesh state electricity board for the development of distribution infrastructure in the state's south zone. The project is worth Rs 889 crore.

It also received order for the north zone that is expected to be completed in two years. The development and distribution infrastructure project for the north zone is worth Rs 409 crore.

The company received a fourth order for the design and construction of an elevated viaduct, five elevated metro rail stations, and a ramp-up between metro stations. The project, worth Rs 543 crore, is expected to be completed in 1,092 days.

Shares of the company rose as much as 8.43% during the day to the highest level since Feb. 29, before paring gains to trade 3.78% higher at 12:21 p.m. This compares to a 0.51% decline in the NSE Nifty 50.

The stock has risen 286.16% in the last 12 months. Total traded volume so far in the day stood at 1.5 times its 30-day average. The relative strength index was at 47.

Of the three analysts tracking the company, one maintains a 'buy' rating and two recommend a 'hold', according to Bloomberg data. The average 12-month analysts' price target implies a downside of 3%.