The share price of Rail Vikas Nigam (RVNL) has increased about 40% over the last five days, and on Tuesday (April 25), the stock finished 19.20% higher at Rs. 104.60 per share. The stock has drawn attention because to the share price increase of RVNL, a railway PSU company, particularly during the last week. After a partnership between Siemens and Rail Vikas Nigam obtained two distinct orders from Gujarat Metro Rail Corporation, the stock price of the firm increased.
This was made apparent when Siemens declared in an exchange filing that “Siemens, as part of a consortium along with Rail Vikas Nigam, received two separate orders from Gujarat Metro Rail Corporation (GMRCL).”
The orders are for Surat Metro Phase 1, which spans more than 40 km and includes 38 stations and two depots, and Ahmedabad Metro Phase 2, which spans more than 28 km and includes 23 stations and one depot.
When compared to Q3 FY22, RVNL's consolidated net profit increased by 30.5%, to Rs 382.42 crore, from Rs 293.01 crore. The income from operations for the PSU company, Railway, decreased slightly to Rs. 5,012.09 crore in Q3 FY23 from Rs. 5,049.24 crore in the previous comparable quarter.
Regarding the stock, analysts suggested taking some profits while holding onto the remainder with a possible objective of Rs 120.
The average target price for RVNL is Rs. 61, according Trendlyne data.
RVNL is engaged in a variety of railway projects, including the building of cable-stayed bridges, large bridges, workshops, gauge change, electrification, and new lines.
Moreover, Raosaheb Danve, a Union Minister, said that attempts are being made to start the Vande Bharat train manufacturing by August 2023. This has caused the stock to be in the headlines.
For the Rs 58,000 crore deal to build and maintain 200 trainsets at a cost of Rs 120 crore each, a group led by Russia's CJSC Transmashholding and Rail Vikas Nigam emerged as the lowest bidder (L1). On March 31, RVNL said that it has received a letter of award from the Ministry of Railways for the manufacture and maintenance of Vande Bharat trainsets, including the modernization of the public manufacturing facilities and trainset depots.
The stock recently attracted notice after it emerged as the lowest bidder for the MMRDA project's Mumbai Metro line 2B, which has a cost of Rs 378 crore.