Over the past one month, share prices of Rail Vikas Nigam Limited (RVNL) have soared by 60%. On Thursday, 11 July, 2024, RVNL’s share prices saw a significant second-day price rise of 3%.
On Wednesday, 10 July, 2024, the closing price of RVNL’s shares were at 13.5% higher. The record high of RVNL shares is INR 628. This rise has increased RVNL’s market capitalization to INR 1.3 lakh crore. This makes it only the second railway company after IRFC to achieve this milestone.
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Collaborations with Domestic and International Companies
One of the main drivers of this surge is RVNL’s strategic collaborations. On July 4, 2024, RVNL signed a Memorandum of Understanding (MoU) with the Delhi Metro Rail Corporation Limited (DMRC). This agreement focuses on working together on various projects like Metro, Railways, High-Speed Rail, Highways and Megabridges. This is for both in India and abroad.
Expanding Expertise to the Middle East and North Africa
On July 9, 2024, RVNL announced another MoU. This time the MoU is with TATWEER Middle East and Africa LLC. This partnership aims to leverage RVNL’s railway expertise to develop joint capabilities for rail-based projects in the Middle East, North Africa and European countries.
Securing Major Orders
RVNL also secured many other significant orders in July, 2024. The South Eastern Railway awarded RVNL an INR 202.87 crore project. RVNL has to design, supply, erect, test and commission a 132 KV Traction Substation and related facilities in the Kharagpur-Bhadrak section. This project is expected to be completed in 18 months.
RVNL also received an INR 132.59 crore order from the Central Railway. This order is for upgrading the electric traction system in the Wardha-Balharshah section of the Nagpur division. This project will take approximately 24 months to complete.
New Projects and Technical Advisory Services
On July 10, 2024, RVNL signed an MoU with IMS Consultancy Private Limited. IMS will provide technical and advisory services to RVNL for various projects in Railways, Tunnels, Highways and Expressways.
RVNL received a Letter of Award from Maharashtra Metro Rail Corporation Limited (Nagpur Metro) for constructing six elevated metro stations. The project is valued at INR 187.34 crore. It is expected to be completed in about 30 months.
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RVNL’s impressive rally is driven by multiple order wins, strategic partnerships and significant projects. These factors have kept the company’s stock in the spotlight. It is contributing to its remarkable performance in the stock market.
Disclaimer
The content of this article is only for informational purposes and we do not offer any investment advice from our end. Please consult a SEBI-registered investment advisor before making any investment decision. The information does not necessarily reflect the views/opinions of the publisher.
About the Author
Mr. Radhesh Tarang Shah, is a management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
