RVNL Shares Rise Over 4 Per Cent After Bagging Rs 1,545 Crore Maldives Project

The project in Maldives will be executed within 24 months from now, according to press release by Rail Vikas Nigam Ltd

RVNL said that the Maldives contract is a part of the strategic project of the government and the cost is pegged at Rs 1,544.60 crore.

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Rail Vikas Nigam Ltd’s (RVNL’s) shares on Wednesday opened over 4 per cent higher after the company was appointed as the project implementation agency for development of the UTF Harbor Project in Maldives.

According to a press release by the company, “This is a strategic project of the government and the cost is pegged at Rs 1,544.60 crore.” The project will be executed within 24 months from now, added the exchange filing.

On Wednesday at 9:30 am, the stock was quoting at Rs 66.35, higher by 4.4 per cent. Trading volumes at the same time stood at 11 million shares on the NSE.

The Maldives project is the second big order win for RVNL within a week. On December 22, the company received a contract worth Rs 198 crore for construction of Bhesan Depot and workshop from Gujarat Metro Rail Corporation (GMRC). The said order will be executed within 20 months from now, said the company.

Prior to that, the company was awarded a contract worth Rs 137 crore for increasing speed potential to 160 kmph in Pradhankhanta - Bandhua section of Dhanbad Division under East Central Railway.

In Q2FY23, RVNL's consolidated net profit jumped 36.5 per cent year-on-year to Rs 381.22 crore on 21.9 per cent rise in net sales to Rs 4,908.90 crore.

The stock has seen a significant run up in the past six months, gaining over 100 percent. Several rail stocks have seen tactical buying ahead of Budget 2023. As per news reports, the government might divest some stake in RailTel Corporation of India, RVNL and four other railway firms, which has boosted investor sentiment.

On 11 am, the shares of RVNL were trading at Rs 66.70 apiece, up 4.96 per cent on the BSE.