RVNL shares climb 12% as railway firm discloses order book details, future plan

Shares of Rail Vikas Nigam Ltd (RVNL) zoomed 12% today after state-run firm said its order book has reached Rs 65,000 crore, 50 per cent of which are railway projects. RVNL shares climbed 11.86% to an intraday high of Rs 281.45 on BSE. Total 18.86 lakh shares of RVNL changed hands amounting to a turnover of Rs 51.21 crore.

Market cap of RVNL climbed to Rs 57,556 crore on BSE. RVNL shares have a one-year beta of 1.4, indicating high volatility during the period.         

“We have got an order book of around Rs 65,000 crore, which roughly constitutes 50 per cent from the nomination, that is the typical railway projects, and 50 per cent from the market. In time to come, we should maintain an order book of around Rs 75,000 crore," RVNL management officials said.

The railway firm has also won projects in the electrification and transmission lines among others.

The share of the Vande Bharat trains was around Rs 9,000 crore, and Rs 7,000 crore was for several metro projects in the order book.

RVNL is also looking to bag new projects in off-shore markets including Central Asia and UAE and Western Asia, the management said in an investors call.

In terms of technicals, the relative strength index (RSI) of RVNL stands at 48.8, 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.      

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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