RVNL shares rise 6% as CareEdge assigns AAA rating to bank facilities

Shares of state-run Rail Vikas Nigam Ltd (RVNL) rose over 6% in the afternoon session after credit rating firm CareEdge assigned CARE AAA rating to the bank facilities of the firm with a stable outlook. RVNL shares surged over 6%  to Rs 168.70 on BSE. Total 32.45 lakh shares of RVNL changed hands amounting to a turnover of Rs 53.42 crore. Market cap of RVNL rose to Rs 35,122 crore on BSE. RVNL shares have a one-year beta of 1.4, indicating very high volatility during the period.      

In terms of technicals, the relative strength index (RSI) of RVNL stands at 49.6, signaling it's trading neither in the overbought nor in the oversold zone. Rail Vikas Nigam shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.  

On November 15, RVNL won a Rs 311 crore order from the Central Railway to build tunnels and bridges in Madhya Pradesh.  

RVNL said it would construct four tunnels of 1.6 km, with ballastless track, earthwork in formation and 28 bridges, along with the supply of stone ballast, track linking, side drain retaining wall, etc., in the Dharakoh Maramjhiri section in connection with a third line.  

The firm reported a 3.4% rise in profit at Rs 394.3 crore in Q2 against Rs 381.2 crore in the year-ago period. Net profit rose 15% sequentially from Rs 343 crore.  Revenue climbed marginally to Rs 4,914.3 crore in Q2 against Rs 4,908.9 crore in the preceding year. Income from other operations rose 33% year-on-year to Rs 296 crore.  

Earnings before interest, taxes, depreciation, and amortisation or EBITDA fell 5.6% to Rs 298.3 crore in the September 2023 quarter against Rs 315.9 crore in the September quarter of the previous fiscal.   

About the company        

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.   

 

 

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