RVNL share price hit 10% upper circuit on Tuesday; Here’s why
Rail Vikas Nigam Ltd (RVNL) shares jumped 10% and recorded a new 52-week high on Tuesday’s trading session after the company announced that the RVNL-SCC joint venture had won the project at ₹2,249 crore with the lowest bid.
According to the company’s exchange filing, the company has emerged as the lowest bidder for the Mahi Bajaj Sagar Project in Banswara, Rajasthan, and it will plan, design, and build the main canal, structures, and associated distribution system for this irrigation project.
In 42 months, the order should be carried out.
The Additional Chief Engineer, Water Resources Zone, UHLC, Udaipur offered the bid for the project.
On the other side, the company also won the contract for the Chennai Metro Rail Limited (CMRL) phase-II project’s three underground packages, totaling ₹3,146 crore.
On the technical front, a few analysts said that the stock may yet rise further, while one cautioned against new purchases at the current price.
The stock was up for the second straight session today, and opened at the day’s intraday low of ₹111.30 apiece however picked up momentum to freeze at the upper price band of ₹118.40 apiece.
The stock has gained 248.5% and outperformed its sector by 225.2% in the past year, as per trendlyne data.
Further, the Department of Public Enterprises’ award of the company the ‘Navratna’ statusfurther contributed to the stock’s positive sentiment.
The central public sector enterprise (CPSE) therefore rose to the position of CPSEs’ 13th ‘Navratna’.
The stock has increased by over 56 percent during the past month. Additionally, it has generated a return of nearly 194 percent over the last six months.
Bylivemint
