Shares of Rail Vikas Nigam Ltd. rose as much as 9% on Thursday, recouping losses from last two sessions, after it received a letter of award from the Madhya Pradesh government to construct power transmission lines.
RVNL has received the LoA in a joint venture with Salasar Techno Engineering Ltd. to build 132 kV and 220 kV power transmission lines and associated feeder bays on a total turnkey basis in the eastern part of the state, the company said in an exchange filing.
The total project cost approximately is Rs 174 crore. RVNL has a 51% stake in the JV, and Salasar Techno has a 49% stake, according to the filing.
RVNL's stock rose as much as 9% during the day to Rs 242.80 apiece on the NSE. It was trading 6.40% higher at Rs 236.85 per share, compared to a 0.17% advance in the benchmark Nifty 50 as of 11:22 a.m.
The share price has risen 240.6% in the last 12 months. The total traded volume so far in the day stood at 0.63 times its 30-day average. The relative strength index was at 42.03.
Of the three analysts tracking the company, one maintains a 'buy' rating on the stock and two recommend 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 3%.
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