One of the most bullish runs at the bourses this year has been in railway stocks. Several railway stocks have rallied tremendously generating multi-bagger returns for investors. Rail Vikas Nigam Ltd. has been at the forefront of this rally. Just in the past six months, the stock has gone up close to 190%. So, here’s how much money you’d have had if you invested in the stock a year ago.
The Investment: On September 12, 2022, RVNL was priced at ₹34. With an investment of ₹10,000, you would have secured approximately 294 shares. Fast forward to today, with the stock price standing at ₹183, those shares would now be valued at approximately ₹53,844.
Background: RVNL’s primary mandate is to undertake rail project development, mobilization of financial resources, and implementation of rail projects pertaining to strengthening golden quadrilateral and port connectivity, among others.
RVNL along with several other railway stocks such as IRCON, and Titagarh are witnessing a surge today following the massive rail and ports corridor plan linking India with the Middle East, unveiled during the G20 Summit in New Delhi. This ambitious initiative, involving key global players, aims to establish robust connections spanning data, railway networks, ports, and energy infrastructure.
The company last week also emerged as the lowest bidder for a contract from the Vadodara Division of Western Railway. This contract, valued at ₹174.27 crore, encompasses civil engineering works, construction of station buildings, platforms, and other related infrastructure. The project, expected to be executed over two years, is a joint venture between RVNL and MPCC, with RVNL holding a 74% stake.
Price Action: RVNL’s share price was up 13.60% to trade at ₹185 in the mid-market hours of trading on Monday.
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Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.
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