Shares of Rail Vikas Nigam Ltd. rose over 5% on Monday after the construction arm of the Ministry of Railways emerged as the lowest bidder for three orders.
The company emerged as the lowest bidder for a Rs 148 crore order from railways to design, supply, erection, testing and commissioning for the upgradation of the electric traction system for the Kharagpur-Bhadrak section of the South Eastern Railway.
It was also the lowest bidder for an order worth Rs 95.95 crore for engineering, procurement, construction of design, supply, erection, testing and commissioning of single-phase AC, electrification OHE and TSS works of the Araria-Thakurganj New Line Section of the New Line Project of Araria-Galgalia of Northeast Frontier Railway.
The order includes associated work and supply, erection, modification, testing and commissioning of SCADA for the section.
The company also emerged as lowest bidder in a joint venture with Salasar Techno Engineering Ltd. for an Energy Development Corp. project for plant design, supply and installation of 45.8 km and 110Kv double circuit Rukarara-Huye-Gisagara Transmission Lines.
The total contract value is said to be worth $7.15 million. RVNL has 49% stake in the joint venture.
Shares of the company rose as much as 5.06% intraday. It pared gains to trade 3.52% higher, compared to a 0.86% advance in the benchmark Nifty 50 as of 10:02 a.m.
It has risen 247.25% in the last 12 months. The relative strength index was at 56.
Of the three analysts tracking the company, one has a 'buy' rating and two suggest a 'hold', according to Bloomberg data. The average 12-month analysts' price targets implies a potential downside of 8.1%.
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