RVNL Shares Attain 52-Week Peak Following Power Project Bid Win

The stock of Rail Vikas Nigam Limited (RVNL), a prominent Navratna CPSE under the purview of India's Ministry of Railways, has witnessed a noteworthy surge, climbing over 5% to reach a 52-week high. On Tuesday, January 16, trading commenced with a 2.02% gain, propelling the share price to an intra-day peak of Rs 231.80.

Consistent Growth Trend

RVNL has been riding a wave of growth over the past week, marking gains for six consecutive days. During this bullish period, the shares of the company have garnered an impressive return of 25.02%.

Project Win Spurs Growth

The share price rally is largely attributed to the company's recent announcement of emerging as the lowest bidder for a significant power transmission project valued at Rs 251 crore in Madhya Pradesh. The project awarded by MP Madhya Kshetra Vidyut Vitran Co. entails tasks such as supply, installation, testing, and commissioning of associated 11 kV line works. The details of this development were disclosed in a filing with exchanges on Monday.

Historical Performance

Examining the stock's historical performance, RVNL shares have furnished shareholders with a multibagger yield of 195.58% over the past year. Extending the timeline to two years, the returns soar to 524%.

Strategic Alliances and Growth

Earlier engagements include RVNL's memorandum of understanding with REC for financing up to Rs 35,000 crore in infrastructure projects. The pact stipulated that these projects would span multiple domains, including multi-modal logistics hubs, rail, roads, ports, and metros, to be executed over a subsequent five-year period. Directors from both REC and RVNL inked the agreement in a gesture of collaborative future endeavors.

As a provider of approximately 30% of the Indian Railways' infrastructure needs, RVNL is not only involved in railway projects but is also expanding into sectors such as roads, ports, irrigation, and metro projects, many of which complement railway infrastructure either directly or indirectly.

RVNL, Shares, Growth