Shares of Rail Vikas Nigam Ltd (RVNL), a government-owned company in the railway sector, have witnessed a significant surge. A substantial order worth approximately ₹160 crore from Central Railway has fueled this positive market movement.
New Delhi: In early morning trading, RVNL shares opened with a slight increase, but soon accelerated, touching an intraday high of ₹415. At the time of writing, the company's shares were trading at ₹411, exhibiting a remarkable 9.36% surge. This surge is attributed to the announcement of a large ₹160 crore order received from Central Railway.
Company Statement
This project involves upgrading the railway's electric system in the Itarsi-Amla section of the Nagpur division of Central Railway. Currently operating on a 1x25 kilovolt power system, it will be upgraded to a more powerful 2x25 kilovolt system. This upgrade aims to enable the railway to better handle heavier train loads, potentially up to 3,000 metric tons at a time. The project also includes the upgrading of overhead equipment (OHE) that supplies power to the trains.
This contract is subject to certain conditions and is expected to be completed within the next 24 months. Such projects are a regular part of RVNL's business and are considered domestic orders within India.
Board Meeting Scheduled to Decide on Dividend
The board of directors of Rail Vikas Nigam Limited (RVNL) is scheduled to meet on Wednesday, May 21st. This meeting will consider the declaration of the final dividend for the financial year 2024-25. If the board approves the dividend, it will require shareholder approval at the company's Annual General Meeting (AGM).
Strong Share Performance
Over the past five days, RVNL shares have gained more than 19%. Over a one-year period, it has shown a 47.69% increase, while over the past five years, it has provided shareholders with a multibagger return of up to 2,254%. During this period, the share's 52-week high was ₹647 and the low was ₹275. The company's current market capitalization is approximately ₹78,375 crore.
