RVNL Gains After Winning Two Contracts Worth Rs 438 Crore
The stock rose as much as 4.95% during the day to Rs 392.45 apiece on the NSE.
Shares of Rail Vikas Nigam Ltd. gained nearly 5% on Tuesday after bagging two contracts worth total Rs 438 crore.
The first contract is from the Bangalore Metro Rail Corp. worth over Rs 300 crore for the third rail track electrification of phases 2A and 2B. The project's completion timeframe is 130 weeks.
RVNL was also the lowest bidder for a contract of Rs 138 crore from Central Railway for upgrading the electric traction system in the Amla-Nagpur Section of the Nagpur Railway Division. The project's completion timeframe is two years.
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Shares of RVNL rose as much as 4.95% during the day to Rs 392.45 apiece on the National Stock Exchange. It was trading 3.92% higher at Rs 388.60 per share, compared to a 0.27% advance in the benchmark Nifty at 11:50 a.m.
The stock has risen 114.02% on a year-to-date basis and 218.87% in the last 12 months. The total traded volume so far in the day stood at 0.68 times its 30-day average. The relative strength index was at 67.13.
Three analysts tracking the company have a 'hold' rating according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 20.02%.
All Railway Stocks Advance
Shares of railway companies advanced on Tuesday on optimism that the government's infrastructure push will continue as key ministries had no personnel changes in the National Democratic Alliance's third term.
The government's focus on infrastructure spending will create new assets and improve existing infrastructure, such as roads, railways, and energy networks, according to Ridham Desai, chief equity strategist - India at Morgan Stanley.
"Railways hold immense potential for reducing logistics costs and improving overall efficiency," he said in an interview to NDTV Profit.
Jupiter Wagons Ltd. gained the most among its peers, followed by Railtel Corp., and Texmaco Rail & Engineering Ltd.
