📷 Image Credits: Benzinga India
Rail Vikas Nigam Limited (RVNL) has secured a substantial order worth ₹160.08 crore from East Coast Railways, as announced on Monday afternoon. The company informed the exchanges that it had received a letter of acceptance for the automatic block signalling system in some of the existing stations in the section of Jakhapura Nergundi, Khurda Road-Bhusundpur & Bhusundpur-Golanthra over Khurda Road Division of East Coast Railway. This order is expected to be completed within 24 months, with RVNL being declared the lowest bidder for this project back in June.
Interestingly, a recent Motilal Oswal research note highlighted that RVNL is among the top two mid-cap stocks with significant month-on-month selling in June. Mutual fund shareholding in RVNL saw a sharp decline to 20 lakh shares, plummeting by 75.9% compared to the previous month, with the value of shares held by mutual funds also taking a nosedive to ₹80 crore, down by 73.7% from May. Despite this, RVNL’s share price, which hit a new all-time high earlier in the day, was down marginally by 0.51% to close at ₹623.55 just before the market closed on Monday.
The company’s order book at the end of March 2024 stood strong at ₹85,000 crore, and it has anticipated an order inflow of around ₹20,000-₹25,000 crore in the fiscal year ending in March 2025. This recent order from East Coast Railways adds to RVNL’s growing list of projects, showcasing its continued presence in the rail infra sector. Investors and market watchers are keen on how RVNL will navigate through the completion of this new order and the impact it will have on the company’s overall performance in the coming months.
