RVNL‘s share price went up around 2% on Thursday morning to hit an intraday high of ₹574.50.
What Happened: RVNL announced a partnership with Dhaya Maju Infrastructure (Asia) Sdn Berhad (DMIA) to expand its operations into the ASEAN market and establish a manufacturing base in Malaysia.
The announcement, made on Wednesday evening by RVNL, details a memorandum of understanding (MoU) signed by the two companies that outlines their collaboration to jointly participate in railway infrastructure and services projects across the ASEAN market and other mutually agreed regions, with a particular emphasis on Malaysia.
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This partnership comes at a critical time for RVNL, which has been facing challenges in the stock market. Earlier this month, RVNL reported a 34% decline in its Q1 net profit, which fell to ₹224 crore, missing analysts’ estimates. The drop in profit was primarily attributed to weak execution related to central elections and geopolitical turmoil.
Analysts also advise caution on the stock. IDBI Capital has a “hold” rating on the stock, while Antique Broking has a “sell” call. One of the concerns that the analysts have shared is the expensive valuation.
Price Action: RVNL’s share price was up 1.24% to trade at ₹570.90 as the markets opened on Thursday.
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