Shares of state-run Rail Vikas Nigam (RVNL) is trading near its record highs and has recovered substantially from recent declines. In fact if we see the stock’s rally, it has surged nearly 60% over the past month, propelling RVNL’s market capitalization to Rs 1.3 lakh crore. RVNL is now the second railway company, after IRFC, to achieve this milestone.
What’s driving the rally in RVNL?
Throughout July, RVNL has remained in the spotlight due to several key developments:
– July 4: RVNL announced signing an MoU with Delhi Metro Rail Corporation Limited (DMRC) to collaborate on upcoming projects in Metro, Railways, High-Speed Rail, Highways, and Megabridges, both in India and abroad.
– July 9: Continuing its international engagements, on July 9, RVNL signed another MoU with TATWEER Middle East and Africa LLC (TATWEER) to enhance joint capabilities in railway infrastructure design and execution across the MENA Region and Europe.
–July 9: Securing a significant order from South Eastern Railway on July 9, RVNL will undertake a Rs 202.87 crore project for a 132 KV Traction Substation and related infrastructure on the Kharagpur – Bhadrak section.
– July 9: Another notable order from Central Railway, valued at Rs 132.59 crore, involves upgrading the electric traction system in the Wardha-Balharshah Section to enhance operational efficiency.
– July 10: RVNL announced an MoU with IMS Consultancy Private Limited (IMS) to provide technical and advisory services for railway, tunnel, and road (Highways & Expressways) projects.
– RVNL also received a Letter of Award from Maharashtra Metro Rail Corporation (Nagpur Metro) for constructing 6 elevated metro stations, totaling Rs 187.34 crore, with an estimated completion time of 30 months.
RVNL Stock Performance in last one year
In terms of stock performance, RVNL shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a handsome 62.92% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 217.72%, indicating a strong upward trend.
Year-to-date, RVNL shares have surged by 248.16%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 423.18% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
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