Shares of state-owned Rail Vikas Nigam (RVNL) rose nearly 4% to Rs 162.9 in Wednesday’s trade on BSE after the firm received a letter of acceptance for a Rs 311.2 crore order from the Central Railway to build tunnels and bridges in Madhya Pradesh.
“The LOA is for construction of 4 tunnels (total length 1.6km) with ballastless track, earthwork in formation, construction of important bridges (2), major bridges (1), minor bridges (25), supply of stone ballast, track linking, side drain retaining wall etc. from Km 831.8 to Km 841.9 in Dharakoh Maramjhiri section in connection with third line,” RVNL said in an exchange filing.
The Rs 311.2 core order, from Central Railways, is slated to be completed in 18 months.
At 10.46 am, the stock was trading 2.4% higher at Rs 160.6 on the BSE. RVNL is a multibagger stock as it has given 135% returns to its investors year-to-date. It has also rallied over 750% in the past three years.
Earlier in October, RVNL-MPCC (JV) had received an LOA for engineering works and supply of 50 mm machine crushed stone ballast, complete track works including linking of track works in connection with gauge conversion work between Nadiad- Petlad (37.26 km) of the Vadodara Division on Western Railway. The order was valued at Rs 245.71 crore.
The company also received the same work order from Western Railways for the Petlad-Bhadran (22.5 km) stretch of the Vadodara division. The order was valued at Rs 174.27 crore.
As per Trendlyne data, the average target price of the stock is Rs 146, which shows a downside of 9% from the current market prices. The consensus recommendation from three analysts for the stock is a ‘Hold’.
Technically, the stock’s day RSI (14) is at 47.7. The RSI below 30 is considered oversold and above 70 is overbought, Trendlyne data showed. MACD is at -1.0, which is below its Center Line, this is a bearish indicator. RVNL stock stands higher than the 5 day, 10 day, 20 day, 100 day, 150-day and 200 day moving averages.