RVNL shares hit fresh record high! Stock jumps 36% in just two sessions

Shares of Rail Vikas Nigam Ltd (RVNL) continued their record run in Monday’s trade. The stock zoomed 15.53 per cent to hit a new lifetime high of Rs 567.75. At this price, the stock has gained 35.58 per cent in two back-to-back sessions and delivered multibagger returns by rallying over 210 per cent on a year-to-date (YTD basis).

The scrip saw heavy trading volume on BSE today as around 1.15 crore shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 26.44 lakh shares. Turnover on the counter came at Rs 633.10 crore, commanding a market capitalisation (m-cap) of Rs 1,17,240.68 crore. And, there were 5,98,990 sell orders against buy orders of 3,43,877 shares.

The railway PSU has been securing new orders and signing meaningful pacts. It has recently signed a Memorandum of Understanding (MoU) with Delhi Metro Rail Corporation Ltd (DMRC).

“RVNL has signed MoU with Delhi Metro Rail Corporation Limited (DMRC) for participation in the upcoming projects in India and abroad as Project Service Provider for Metro, Railways, High Speed Rail, Highways, MegaBridges, Tunnels, Institutional Buildings/ Workshops or Depots, S&T works, and Railway Electrification,” it stated in an exchange filing.

Before this, the state-owned firm emerged as the lowest bidder for a Central Railway contract worth Rs 132.59 crore.

In a separate development, Railway Minister Ashwini Vaishnaw has announced that 2,500 new general passenger train coaches are being manufactured. He also mentioned that approval has been granted to manufacture another 10,000 such coaches.

On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter’s 14-day relative strength index (RSI) came at 87.76. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company’s stock has a price-to-equity (P/E) ratio of 70.04 against a price-to-book (P/B) value of 13.03. Earnings per share (EPS) stood at 7.02 with a return on equity of 18.60.

RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry to execute projects assigned to it. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.

As of March 2024, the government held a 72.84 per cent stake in the rail PSU.