Shares of RVNL have been on a strong bullish trend in the last few months. In the past six months, the stock has surged up over 150%. The stock price surge was majorly backed by the strong inflows of orders throughout the year.
The company, along with several other railways stocks, benefitted from the government’s push towards railways infrastructure.
The Investment: If you invest ₹10,000 in RVNL today, you will receive around 59 shares of the company with the current market price being around ₹167. Now, if for some unfortunate reason, the stock crashes back to its 52-week low of ₹32.85 that it hit on 29 Sept. 2022, the value of those 59 shares would drop down to ₹1,938.
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Background: RVNL is primarily tasked with several key responsibilities, including rail project development, the generation of financial resources, and the execution of rail projects.
Just this month, the company announced bagging several new orders. Earlier in the month, the company bagged two orders from the Madhya Gujarat Vij Company Limited (MGVCL). The orders were worth around ₹600 crore. It was also declared the lowest bidder for a contract from the Vadodara Division of Western Railway. The value of the contract is ₹174.27 crore.
On Sept. 13, it announced being declared the lowest bidder for another order from the Vadodara Division of Western Railway. The project is worth around ₹245 crore and is awarded to a joint venture between RVNL and MPCC. RVNL holds a 74% share of the JV.
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Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
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