Rail Vikas Nigam shares zoom 8% today, here's why 

Shares of Rail Vikas Nigam Ltd (RVNL) gained for the second straight session today after the state-run firm won a Letter of Acceptance (LoA) from Ahmedabad Municipal Corporation (AMC). Sentiment around the stock also received a boost after a report said that the Modi government was planning to offload some of stake in listed railway companies to raise money.  The government set a disinvestment target of Rs 65,000 crore for the current fiscal in Budget 2022.

RVNL shares hit an intraday high of Rs 40.15, rising 8.08 per cent against the previous close of Rs 37.15 on BSE.  Stock of Rail Vikas Nigam is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

RVNL shares have gained 14.24 per cent this year and risen 2.45 per cent in a year.

In a month, the stock has climbed 13 per cent. Total 22.98 lakh shares of the firm changed hands amounting to a turnover of Rs 9.01 crore. Market cap of the firm rose to Rs 8,277 crore on BSE.

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RVNL has been awarded contract for Development of Kharicut Canal (Between Naroda Smashan Gruh & Vinzol Vehla) in AMC area Pakage 2 and 3 for which details of the contracts awarded are as under: Development of Kharicut Canal (Between Naroda Smashan Gruh & Vinzol Vehla) in AMC area Pakage 2: Kharicut Canal Development Navyug School Canal Crossing to Nidhipark Society (Ch. 2500 - Ch. 5000) at an awarded cost of Rs236,19,70,464.23.

Development of Kharicut Canal (Between Naroda Smashan Gruh & Vinzol Vehla) in AMC area Pakage 3 : Kharicut Canal Development Nidhipark Society to Odhav Fire Station (Ch. 5000 - Ch. 7600) at an awarded cost of Rs248,00,83,364.78.

In the first quarter of the current fiscal, net profit climbed 64.73 per cent to Rs 232.26 crore. The public sector enterprise under the Ministry of Railways had clocked a consolidated net profit of Rs 140.99 crore in the year-ago quarter.

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Consolidated total income climbed to Rs 3,931.80 crore  in Q1 as against Rs 2,967 crore earlier. Total expenses also rose to Rs 3,652.08 crore in the first quarter from Rs 2,785.09 crore.

Rail Vikas Nigam Limited (RVNL) is a special purpose vehicle (SPV) engaged in undertaking development projects. RVNL is focused on mobilising financial resources and implement projects pertaining to reinforcement of Golden Quadrilateral. RVNL executes all types of railway projects including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable stayed bridges, and institutional buildings.