Shares of Rail Vikas Nigam Ltd (RVNL) rose sharply in Thursday’s trade after it emerged as the lowest bidder for manufacturing cum maintenance of Vande Bharat trains along with Russia’s Transmashholding (TMH) as a joint venture partner. The stock jumped 15.35 per cent to hit a day high of Rs 67.50 over its previous close of Rs 58.52. The counter has slipped 2.55 per cent so far this year. However, it has surged 115.01 per cent in the past one year.
“RVNL emerges as the Lowest Bidder (L1) for ‘Manufacturing cum Maintenance of Vande Bharat Trainsets including Up-gradation of the Government Manufacturing Units & Trainset Depots’ in JV with following JV partners: Metrowagonmash (70 per cent); Locomotive Electronic System (5 per cent); and RVNL (25 per cent),” the state-run PSU stated in an exchange filing. TMH’s company Metrowagonmash is based in Russia’s Mytishchi.
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“Metrowagonmash-Mytischi-RVNL (JV) has been declared L-1. The total quantity is 200 Trainsets and cost per set is Rs 120 crore,” it added.
Around 50.71 lakh shares changed hands today on BSE, which was nearly five times higher than the two-week average volume of 10.43 lakh shares. Turnover on the counter stood at Rs 33.06 crore, commanding a market capitalisation (m-cap) of Rs 13,925.85 crore.
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In the December quarter of this fiscal, RVNL’s net profit climbed 30.51 per cent to Rs 382.42 crore against Rs 293.01 crore during the previous quarter ended December 2021. Sales stood flat at Rs 5,012.09 crore in Q3 against Rs 5,049.24 crore during the quarter that ended in December 2021.
The stock was last seen trading higher than 5-day, 100- and 200-day moving averages but lower than 20-day and 50-day moving averages. The counter’s 14-day relative strength index (RSI) came at 44.11. 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 9.42.
RVNL has an average target price of Rs 42, Trendlyne data showed, suggesting a potential downside of 34.07 per cent. The scrip has a one-year beta of 0.88, indicating low volatility.
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RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. 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.
Meanwhile, Indian equity benchmarks fell sharply in early trade today, dragged by technology, consumer goods and automobile stocks.
