RVNL bags order worth Rs 193 crore; stock down 1%

State-run Rail Vikas Nigam Ltd (RVNL) on Tuesday bagged an order worth Rs 193 crore from the Rajasthan Rajya Vidyut Prasaran Nigam Ltd. The rail PSU, in a BSE filing, said, "It has received LOA (Letter of Award) from Rajasthan Rajya Vidyut for construction of new 8 Nos. 132 kV GSS Arnod, Chitamba, Devri, Jarkhoda, Peelwa Nadi, Ralawata, Seeswali and Tarnau along with associated lines and 132KV bays including supply of all equipments/materials, erection (including civil works) testing and commissioning on Supply - ETC basis under BN-9016002314."

Despite the fresh order win, the stock was last seen trading 1.10 per cent lower at Rs 242.60. Separately, the company has secured four order wins this month and emerged as lowest bidder for two projects.

On technical setup, the counter was last seen trading lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but higher than the 100-day, 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 45.12. 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 37.20 against a price-to-book (P/B) value of 7.20. Earnings per share (EPS) came at 6.59 with a return on equity (RoE) of 19.34.

The state-run firm recorded a 6.20 per cent fall in its third-quarter net profit (Q3 FY24), at Rs 358.6 crore, compared to Rs 382.4 crore in the year-ago period. RVNL's revenue from operations slipped 6.40 per cent to Rs 4,689.3 crore as against Rs 275.6 crore in the corresponding period of last fiscal.

As of December 2023, promoters held 72.84 per cent stake in the company.

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.