Navratna PSU Rail Vikas Nigam Ltd shares witnessed sharp surge of 8.86% in morning trade on Bombay Stock Exchange after the company bagged an order worth over Rs 554 crore from K-RIDE. The stock witnessed sharp rally as BSE Sensex erased the early morning decline and gained over 75.55 points to 76,042 at the time of writing the story. Last trading price of RVNL shares on BSE stood at Rs 362.60 per share. The company’s market cap stood at Rs 75,154.55 crore.
The stock witnessed sharp fall of 36.80% in last 6-months span when Sensex slipped 5.39%. In last 1-year, RVNL surged 36.20% and logged impressive rally of 429.58% in last 2-years. It is worth noting that the stock is backed by Life Insurance Corporation of India (LIC) with stake of 5.81%. Meanwhile, brokerage firm Axis Securities is bullish on the stock and assigned buy call.
RVNL Bags New Order On Feb 18, 2025
As per the exchange filing of the company dated Feb 18, 2025, “A Letter of Acceptance has been received from Rail Infrastructure Development Company (Karnataka) Limited (K-RIDE) for “Package C4A: Construction of Nine (9 Nos.) Stations i.e. Elevated (1 No.) and At-Grade (8 Nos.) BSRP Stations of Corridor-4A at Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi, Kaggadasapura including Civil, Structural, Entry / Exit Structure, Steel FOB, Roof Structures, PEB works Architectural finishes and E&M Works and Detailed Design & Engineering (DOC) with all associated works for Bengaluru Suburban Rail Project” (BSRP).”
The broad consideration or size of the order is INR 554,46,65,625/- (Rupees Five Hundred Fifty Four Crore Forty Six Lakhs Sixty Five Thousand Six Hundred and Twenty Five Only) (Excl GST), added the exchange filing. The time period by which the order needs to be executed is 24 months.
RVNL Shares Performance: The 52-week high price of RVNL stock on BSE is Rs 647.00 per share (as on 15/07/2024) and 52-week low price is Rs 213.00 per share (as on 14/03/2024), respectively. The scrip slipped 15.26% year-to-date (YTD), rallied 993.51% in last 3-years, and offered eye-catching returns of 1452.46% in last 5-years.
RVNL Dividend History
The PSU declared a total of 9 dividends since September 6, 2019 and in last 1-year it announced an equity dividend amounting to Rs 2.11 per share. It maintains a dividend yield of 0.62%, according to Trendlyne.
RVNL Bonus Share History
The company never recommended any bonus shares since January 1, 2000. It did not conduct any stock split as well so far.
Why RVNL Shares Witnessed Decline?
RVNL shares have been falling due to several factors. The railway stock has been declining after its net profit for the recent quarter witnessed decline. Other factors include lower projects executions, slower growth in the firm’s core segment, and recent budgetary allocations. Several leading railway stocks witnessed sharp decline after Finance Minister avoided mentioning any major announcement for the sector in the recent and last year’s budget. Analysts were anticipating a hike of up to 20% in budgetary allocation from the FM. Earlier in 2024 during the interim budget, FM Sitharaman chose to refrain from making any allocation for railway sector and that triggered a major fall in the stocks.
Should You Buy RVNL Shares?
Brokerage firm Axis Securities recommended buy call with target price of Rs 501 per share. According to the analyst, “the company maintains a robust order book, supported by a clean balance sheet, strong return ratios, and a healthy dividend payout.”
Disclaimer: The stock has been picked from the brokerage report of Axis Securities. Moneydaily.in, the author, and the respective brokerage house will not be held accountable for any losses caused as a result of decisions based on the article. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.
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