RVNL shares spike nearly 8% after major order win

Shares of Rail Vikas Nigam Ltd (RVNL), the state-run construction arm of the Ministry of Railways, spiked by nearly 8% shortly after the opening bell on Monday. This came in the backdrop of the company bagging a major order in Maharashtra.

The stock opened in the green at ₹375.7 apiece on the National Stock Exchange (NSE). Within a few minutes, it peaked to an intraday high of ₹399.9, up 7.9% as against the previous day's close.

On the BSE, the shares were trading 7.3% higher at ₹397.4 at 9:37 am.

RVNL wins order from Nagpur metro

Post the market hours on Friday, RVNL informed the exchanges that it has emerged as the lowest bidder for a project to develop metro stations in Maharashtra’s Nagpur. The project cost is ₹187 crore.

The bids for the project were invited by the Maharashtra Metro Rail Corporation Limited. RVNL will be required to construct six elevated metro stations – Cantonment, Kamptee Police Station, Kamptee Municipal Council, Dragon Palace, Golf Club and Kanhan River Metro Station.

The metro stations will be constructed in “Reach 2B of Nagpur Metro Rail Project Phase 2".

RVNL made the disclosure around 10 days after it bagged a project from the Southern Railway for developing an automatic block signalling system in Tamil Nadu. The project is worth ₹239 crore, the rail PSU informed the exchanges on May 14.

Strong Q4 earnings

On May 17, RVNL declared its results for the March 2024 quarter. The company reported a consolidated net profit of ₹478.4 crore, up 33% from ₹358.5 crore in the year-ago period.

Revenue from operations during the quarter came in at ₹6,714 crore, marking a jump of 17.4% from ₹5,719.8 crore in Q4FY23.

The board of the PSU declared a final dividend of ₹2.11 per share on the paid-up equity share capital for the financial year 2023-24. The payout will be subject to shareholders' approval.

Notably, the RVNL stock has emerged as a multibagger, growing by a massive 225% in the past one year. In 2024 so far, the shares have grown by 117%.