RVNL Share Price Gains After Rs 90-Crore Order Win From Southern Railway

The shares of RVNL were trading over 2% higher after the Navaratna PSU bagged a major order. The company has received a Letter of Acceptance worth Rs 90.6 crore from the Southern Railway for the provision of a Video Surveillance System.

The company is also set to pay a final dividend of Rs 1.72 per share during the upcoming week. Earlier last week, the shares fell to the lowest level in four months as the company reported a dip in profit for the June quarter. Its net profit, revenue and operating margin all declined.

Rail Vikas Nigam's consolidated net profit declined 40% on the year to Rs 135 crore from Rs 224 crore. Revenue declined 4.1% on the year to Rs 3,909 crore during April–June from Rs 4,074 crore. Ebitda plunged 70.9% on the year to Rs 52.9 crore from Rs 182 crore.

RVNL stock rose as much as 2.05% during the day to Rs 330 apiece on the NSE. It was trading 1.74% higher at Rs 329.7 apiece, compared to an 1.44% advance in the benchmark Nifty 50 as of 10:23 a.m.

It had declined 42.22% in the last 12 months and 21.97% on a year-to-date basis. The relative strength index was at 43.9.

One of the two analysts tracking the company has a 'hold' on the stock and the other suggests a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 272, implying a downside of 17%.