Railway Stock Surges 7% After Bagging ₹229 Cr Order

RVNL‘s share price extended gains for the third straight session on Tuesday morning going up over 7% to hit an intraday high of ₹267.85.

What Happened: The surge today comes as the PSU signed a Memorandum of Understanding (MoU) with the Airports Authority of India (AAI). The agreement aims to facilitate the construction of a subway or underpass connecting the operational area to the Airport Authority of India’s residential colony in Kolkata. The project is estimated to cost ₹229.43 crore.

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Last week, the company announced bagging another order. The contract involves the design, supply, erection, testing, and commissioning for the enhancement of the electric traction system from 1 x 25 kilovolt to 2 x 25 kilovolt for the Rajkharsawan-Nayagarh-Bolani section of the Chakradharpur division of the South Eastern Railway. Valued at approximately ₹167.28 crore, the project is anticipated to be finalized within an 18-month timeframe.

The railway stock has been consistently bagging orders that have helped propel its share price to new heights in the past year. Since the start of the year, the stock has increased around 45%.

Price Action: RVNL’s share price was up 6.83% to trade at ₹265.90 in the early hours of trading on Tuesday.

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