RVNL surges nearly 4%, extend gains for second day on receiving order worth ₹160 crore from East Coast Railway

In a filing to the stock exchanges, the Indian Railways public sector undertaking (PSU) said that it bagged a contract worth ₹160.08 crore order from the East Coast Railway.

The company mentioned that it will provide an automatic block signalling system with dual Multi Section Digital Axle Counter System (MSDAC) and will also make alterations in existing El/Pl/RRI stations which fall in the Jakhapura to Nergundi stretch, Khurda Road to Bhusundpur and Bhusundpur to Golanthra stretch of the Khurda road division of the East Coast Railway, located in Odisha. RVNL is expected to execute the project in a period of 24 months, the company said on June 14.

Shares of RVNL gained as much as 3.79% to an intra-day high of ₹405 apiece on the NSE extending the gains for the second straight. However the stock pared some of its gains to close 1.49% higher at ₹396 apiece on the NSE.

The stock has gained nearly 118% this year so far and more than 221% in the last one year. In the past month RVNL share price has increased over 31%.

The rally in the railway PSU stock has been seen amid the recent orders bagged by the company. Earlier on June 10, RVNL informed the stock exchanges about receiving an order valued at ₹138.45 crore from the Central Railway. The railway PSU bagged the order for undertaking Over Head Equipment-Cantilever modification to upgrade the existing 1x25 kV Electric Traction System used in the Amla-Nagpur Section in Nagpur division of Central Railway to 2 x 25 kV AT Feeding System.

On June 10, the company informed the exchanges in a separate release that the RVNL-Siemens consortium also bagged an order worth ₹394.23 crore from the Bangalore Metro Rail Corporation Ltd for the engineering, supply, erection,testing and commissioning of 33 KV distribution. As a part of the order, RVNL will also undertake 750V DC third rail traction electrification including traction substations, auxiliary substations and SCADA system for the Phase 2A and Phase 2B.