RVNL Awarded Rs 110-Crore Project From Southern Railway
This contract will upgrade the signalling infrastructure in Southern Railway's Chennai Division.
Rail Vikas Nigam Ltd. has received a Letter of Acceptance from Southern Railway for a Rs 110.86-crore project in the Chennai Division. The contract involves the provision of Multi Section Digital Axle Counter, with existing Digital Computerised Train Control at stations to serve as dual detection for safety purposes.
Shares of RVNL initially saw a dip of 1.63% in intraday trade, but pared loss to trade 1% lower after the order win was confirmed. The order, awarded by Southern Railway, is a domestic contract.
As part of the order, RVNL will also replace the remaining Automatic Feed-back Track Circuits in the Madurai–Gudur and Madurai–Tirunelveli–Bangalore automatic block signalling sections.
This contract will upgrade the signalling infrastructure in Southern Railway's Chennai Division, which is also expected to enhance operational efficiency and safety. The project is set to be completed within 18 months, in line with general contract conditions.
Earlier this month, on Dec. 3, the company announced that it has received a Letter of Acceptance from East Central Railway for another order worth Rs 186.76 crore.
According to its exchange filing, the contract entails design, supply, erection, testing and commissioning of traction substations with associated switching posts for upgradation work of electric traction system from 1X25 to 2X25 KV AT feeding system in Gomoh-Patratu section of Dhanbad Division of East Central Railway.
RVNL Share Price Today
RVNL stock fell as much as 1.63% during the day to Rs 466.50 apiece on the NSE. It pared loss to trade 1% lower at Rs 469 apiece, compared to a 0.43% decline in the benchmark Nifty 50 as of 2:55 p.m.
It has risen 163.75% in the last 12 months and 158.58% on a year-to-date basis. The relative strength index was at 57.51.
Of the three analysts tracking RVNL, one has a 'buy' rating on the stock, one recommends a 'hold' and one suggests a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 251, implying a downside of 46.5%.
