RVNL shares fall 10% despite Rs 106-crore order win

Shares of state-run Rail Vikas Nigam Ltd (RVNL) slipped nearly 10% today despite the railway sector firm winning an order worth Rs 106.37 crore from MP Paschim Kshetra Vidyut Vitran Company Ltd. RVNL stock slipped 9.87% to Rs 219.45 on BSE. 

Total 39.86 lakh shares of RVNL changed hands amounting to a high turnover of Rs 90.99 crore. Market cap of RVNL slipped to Rs 46,495 crore on BSE. RVNL shares have a one-year beta of 1.4, indicating high volatility during the period.         

The order is to be executed in 24 months.

“Letter of Award (LoA) received from M. P. Paschim Kshetra Vidyut Vitran Company Ltd. for Supply, Installation, Testing and Commissioning of New Supply, Installation, Testing and Commissioning of New 11 KV line for Bifurcation & Interconnection, Additional 11 KV Bay at 33 / 11 KV Sub-station, Augmentation of conductor of 33 KV & 11 KV Lines, Additional Distribution Transformer Substations with associate New 11 KV Lines, LT Line on AB cable, Conversion of bare LT line with AB Cable, Augmentation of LT AB Cable, Cover conductor for 11 KV Line Crossing Agriculture & Non Agriculture Feeder, 11 kv and 33 kv Bus Bar rennovation other associated work and Supporting works such as DPs, TPs, Crossing etc. in Jhabua O&M Division (LOT-12) under the Revamped Reforms-based and Results-linked, Distribution Sector Scheme, ” said RVNL in a communication to bourses.

In terms of technicals, the relative strength index (RSI) of RVNL stands at 45.1, signaling it's trading neither in the overbought nor in the oversold zone. Rail Vikas Nigam shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day but higher than the 100 day, 150 day and 200 day moving averages.      

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, Sensex tanked 1109 pts to 72,558 in the afternoon session amid a sell-off in the mid cap and small cap segments. Nifty too slipped 422 pts to 21,913 on Wednesday.