Explained: Why RVNL shares surged 12% in early trade today

Explained: Why RVNL shares surged 12% in early trade today

Shares of Rail Vikas Nigam Limited (RVNL) surged 12 per cent in early trade on Monday and hit a day’s high of Rs 281.30 apiece.

At around 1:34 pm, shares of RVNL were up 7.21 per cent on the Bombay Stock Exchange at Rs 269.75 apiece.

The surge in RVNL’s share price came after the state-run company announced that its order book has reached Rs 65,000 crore. Half of these orders are railway projects.

With this increase in orders, the market capitalisation of RVNL on BSE rose to over Rs 57,000 crore in early trade.

RVNL management officials stated that they have secured projects in areas such as electrification, transmission lines, Vande Bharat trains, and metro projects, contributing to the robust order book.

RVNL is also eyeing new projects in overseas markets like Central Asia, UAE, and Western Asia. Despite the volatility in the stock market, RVNL shares have been trading higher than their moving averages, indicating positive investor sentiment.

It is worth noting that RVNL operates as an implementing agency for Indian Railways, handling projects assigned by the ministry from start to finish. This includes all stages of project development, from initial concept and design to contract management and commissioning.

RVNL’s shares have been on a winning streak since last year, barring the brief correction witnessed last month. In the past five trading sessions, RVNL shares gained nearly 16 per cent, while they are up 116 per cent in six months. The stock is up over 300 per cent in a year.

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