RVNL signs fresh pact with IMS Consultancy; stock zooms 14%

Rail Vikas Nigam Ltd (RVNL) on Wednesday entered into an agreement with IMS Consultancy Pvt Ltd. "RVNL has signed MoU with M/s IMS Consultancy Private Limited (IMS) for providing technical and advisory services to RVNL for projects in the field of Railways, MRTS, Tunnels, Roads (Highways & Expressways), Bridges, Building Works, Airports, Ports, Irrigation, Power Transmission and Distribution sector, Solar sector, Wind Sector, Hydro Power Sector etc. in Nepal," the state-owned firm stated in a BSE filing.

The railway PSU has been securing new orders and signing meaningful pacts. Yesterday, it Letter of Acceptance (LoA) from Maharashtra Metro Rail Corporation Ltd (Nagpur Metro) for construction of six elevated metro stations.

On the stock-specific front, RVNL shares surged 13.78 per cent to hit an intra day high of Rs 618. The scrip was last seen trading 12.41 per cent higher at Rs 610.55. At this price, the multibagger counter has gained 235.19 per cent on a year-to-date (YTD) basis and 399.43 per cent in a year.

The scrip saw heavy trading volume on BSE today as around 1.83 crore shares changed hands. The figure was more than the two-week average volume of 45.91 lakh shares. Turnover on the counter came at Rs 1,076.43 crore, commanding a market capitalisation (m-cap) of Rs 1,27,300.90 crore.

Technically, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 84.58. 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 77.41 against a price-to-book (P/B) value of 14.40. Earnings per share (EPS) stood at 7.02 with a return on equity of 18.60.

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.

As of March 2024, the government held a 72.84 per cent stake in the rail PSU.