RVNL’s share price rocketed over 15% to hit a new all-time high of ₹345.90. The stock has been on an incredible rally over the past year. In just the last five sessions the stock has gone up over 27%. However, the PSU’s IPO did not generate a lot of buzz. Even the railway company’s listing was lacklustre. The stock listed at around ₹19 which was the IPO issue price. So what would have happened if you subscribed to the IPO in 2019.
The Investment: If you had applied for the RVNL IPO, you would have had to invest around ₹15,000 to secure around 780 shares. Today with the stock trading at around ₹340, those 780 shares would have been worth over ₹2.65 lakh.
See Also: ONGC Shares Gain As Strong Q4 Profit Defies Analyst Expectations
What’s Up With RVNL: The company’s net profit for the quarter was ₹478.40 crore, marking a 33% increase from ₹359.25 crore in the same quarter last year. Revenue from operations for the March quarter was ₹6,714 crore, up 17% from ₹5,720 crore in the corresponding quarter of the previous year. The order book stands at ₹85,000 crore.
The massive surge today was also aided by the company receiving a letter of acceptance from the South Eastern Railway for a ₹148 crore order. Post the results, domestic brokerage firm IDBI Capital maintained its “hold” rating for the stock with a price target of ₹303.
Price Action: RVNL’s share price was up 13.86% to trade at ₹341.25 on Tuesday afternoon.
Read Next: Railway Stock Jumps 4% As Profit Soars 34% In Q4
Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.