RVNL shares: Multibagger stock tanks 13% after hitting fresh 52-week high

Shares of Rail Vikas Nigam (RVNL) saw some profit booking on Wednesday as the stock plunged sharply after big initial gains and turned negative. In the initial trading session, RVNL hit new 52-week highs amid the heavy trading volumes. However, the stock saw severe selling pressure within just a few minutes.

Rail Vikas Nigam has been at focus on Dalal Street on the back of multiple order wins and the potential of bagging more orders for the Vande Bharat Trains. Also, the company gives a handsome dividend while being a debt-free entity.

The RVNL stock has also been in the news as it emerged as the lowest bidder (L1) for – Mumbai Metro line 2B of MMRDA, which is a project worth Rs 378 crore. The PSU player has also incorporated a subsidiary company named Kinet Railway Solutions.
 
Also this month, RVNL received from North Western Railway for “Provision of automatic block signalling on Madar-Sakhun Section (51.13 Kms) of Jaipur division over North Western Railway. The order size was Rs 63 crore.

According to data from BSE, more than 1.02 crore shares of RVNL worth Rs 110.82 crore were traded till 10.05 am on Wednesday. Similarly, more than 14.24 crore shares of RVNL worth Rs 154.6 crore exchanged hands on National Stock Exchange (NSE) at the time.

Shares of Rail Vikas Nigam surged about 10 per cent to Rs 114.70 on Wednesday, compared to its close at Rs 104.60 during the previous trading session. However, the stock dropped as much as 13 per cent to Rs 100.25 during the session. The company's m-cap was barely shy of Rs 22,000 crore mark.

Shares of RVNL have surged about 55 per cent in the last five sessions before the profit booking trimmed its gains. The stock has risen 75 per cent in the last one month, while it is up 180 per cent in the last six-month period. The stock has surged about 200 per cent in the last one year.

Incorporated in 2003 by the Ministry of Railways India, Rail Vikas Nigam is a project executing agency. RVNL is engaged in the business of mobilization of financial resources, rail project development, enhancing golden quadrilateral and port connectivity by implementing rail projects and raising extra-budgetary resources for Indian Railway project execution.

RNVL was listed at the bourses in April 2019 as the Government of India raised about Rs 482 crore from its initial public offering. The government sold more than 25.34 crore equity shares with a face value of Rs 10 each for Rs 19 apiece. From its issue price, the stock has delivered multibagger returns of more than 500 per cent.