RVNL Share Price Rises Over 4% On Rs 730-Crore Order Win

Shares of Rail Vikas Nigam Ltd. rose after the company received a Letter of Acceptance for an infrastructure project worth Rs 729.8 crore. The big order win is from the Himachal Pradesh State Electricity Board Ltd.

The contract involves developing distribution infrastructure in the central zone of Himachal Pradesh, as part of the "revamped reforms-based and results-linked, distribution sector scheme". The project is expected to be completed within a timeframe of 24 months, according to an exchange filing on Tuesday.

Earlier in February, the company bagged a Letter of Acceptance from East Coast Railway for a Rs 404.4-crore road-doubling project. The project involves "earth work in formation of approaches, protection works and other connected miscellaneous works between Tikiri and Bhalumaska stations".

RVNL stock rose as much as 4.12% during early trade to Rs 339.60 apiece on the NSE. It was trading 1.82% higher at Rs 332.1 apiece, compared to a 0.36% advance in the benchmark Nifty 50 as of 9:26 a.m.

It has risen 36.19% in the last 12 months. The relative strength index was at 35.12.

One out of three analysts tracking the company has a 'buy' rating on the stock, and two suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 270, implying a downside of 17.2%.