Rail Vikas Nigam Ltd. has received an order worth Rs 3,622 crore from BSNL Ltd., the company revealed in an exchange filing. The order is for the development of middle mile network for Bharat Net. RVNL share price jumped significantly after the revelation.
Rail Vikas Nigam will create, upgrade, operate, and maintain the middle mile network of Bharat Net. The work will be done on Design Build Operate and Maintain Model, RVNL said . The company also specified that the order is in the normal course of business.
Rail Vikas Nigam will take three years for construction and 10 years for maintenance contract at 5.5% per annum of capital expenditure for first and five years, and at 6.5% per annum of capex for next five years, the exchange filing added.
RVNL share price rose as much as 9.21% to Rs 406.15 apiece, the highest level since Jan. 10. It was trading 6.66% higher at Rs 396.65 apiece as of 10:09 a.m., as compared to 0.39% advance in the NSE Nifty 50 index.
Last year, the share price had been hit by extreme volatility within a short period of time. RVNL share price hit 52-week high of Rs 647 apiece on July 15, 2024, while it had hit a 52-week low of Rs 213.05 apiece on March 14, 2024.
The index rose 77.43% in 12 months. Total traded volume so far in the day stood at 4.5 times its 30-day average. The relative strength index was at 43.25.
Out of three analysts tracking the company, one has maintained a 'buy' rating, one has recommended a 'hold,' and one has suggested a 'sell', according to Bloomberg data.
The important thing to note is that the average 12-month consensus price target implies a downside of 36.7%.
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