RVNL shares rise 12% as railway firm publishes order book information and plan

RVNL shares rose 11.86% to an intraday high of Rs 281.45 on the BSE. RVNL’s market capitalization rose to Rs 57,556 crore on the BSE.

In short

• RVNL shares have a one-year beta of 1.4, indicating strong volatility over that period.
• The allocation for the Vande Bharat trains amounted to approximately Rs 9,000 crore, while around Rs 7,000 crore was earmarked for various metro projects in the order book.
• From a technical perspective, the relative strength index (RSI) of RVNL is currently at 48.8, indicating that it is trading neither in the overbought nor in the oversold territory.

Today, shares of Rail Vikas Nigam Ltd (RVNL) experienced a significant surge of 12% following an announcement by the state-run firm revealing that its order book has reached an impressive Rs 65,000 crore. Notably, 50% of this total comprises railway projects. RVNL shares rose by 11.86% to reach an intraday high of Rs 281.45 on the Bombay Stock Exchange (BSE). The trading session witnessed considerable activity, with a total of 18.86 lakh shares of RVNL changing hands, resulting in a turnover of Rs 51.21 crore.

The market capitalization of RVNL surged to Rs 57,556 crore on the Bombay Stock Exchange (BSE). RVNL shares boast a one-year beta of 1.4, signifying a period of notable volatility in the market.

RVNL management officials stated, “Our current order book stands at approximately Rs 65,000 crore, with roughly half coming from nominations, representing typical railway projects, and the other half from the market. Going forward, we aim to sustain an order book of around Rs 75,000 crore.”

RVNL shares

Additionally, the railway firm has secured projects in electrification and transmission lines, among others.

The allocation for the Vande Bharat trains amounted to approximately Rs 9,000 crore, while around Rs 7,000 crore was earmarked for several metro projects included in the order book.

During an investor call, RVNL management expressed their intention to secure new projects in offshore markets, including Central Asia, the UAE, and Western Asia.

From a technical perspective, the relative strength index (RSI) of RVNL stands at 48.8, signaling that it is currently situated in a neutral position, neither in the overbought nor oversold territory. Furthermore, Rail Vikas Nigam shares are trading above their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages.

RVNL serves as the executing arm of Indian Railways, operating on behalf of the ministry to execute assigned projects. Operating on a turnkey basis, it manages the entire project development lifecycle from conceptualization to commissioning. This encompasses various stages such as design, estimate preparation, contract procurement, and project and contract management.