RVNL Share: From Rs 60-To-260, Top Dividend Railway Stock Rallied 5% On Large Deal Wins, Positive Rating

Top railway stock, Rail Vikas Nigam Ltd (RVNL) rallied by as much as 5% on Monday and touched an intraday high of Rs 265.65 apiece. The upside in this major dividend-paying PSU is due to large order wins and credit rating upgrades in its bank facilities. This railway stock is now up by 289% from its 52-week low of Rs 67.34 apiece.

On BSE, RVNL shares ended at Rs 261.80 apiece, up by 3.50% with a market cap of Rs 54,585.83 crore. The stock's 52-week high and low were at Rs 345.60 and Rs 67.34 respectively.

RVNL shares rose about 5% in a single day with an intraday high of Rs 265.65 apiece. In the previous session, the stock was at Rs 252.95 apiece.

RVNL Big Orders Win:

Firstly, RVNL has emerged as the Lowest Bidder (L1) from SER HQ-ELECTRICAL/SOUTH EASTERN RAILWAY for "Design, Supply, Erection, Testing and Commissioning for upgradation of Electric traction system from 1 x 25 KV to 2 x 25 KV traction system for Kharagpur (Excl.) Bhadrak (Excl.) section of Kharagpur division of South Eastern Railway to meet 3000 MT loading Target. The transaction cost Rs 148.27 crore.

Secondly, RVNL also emerged as lowest bidder from NFR-CONST HQ-ELECTRICAL/N.F.RLY CONSTRUCTION for "Engineering, Procurement, Construction of Design, Supply, Erection, Testing & Commissioning of 25 kV, 50 Hz, Single Phase, AC, Electrification OHE and TSS Works of Araria -Thakurganj New line Section in connection with New Line Project of Araria - Galgalia of N.F. Railway, including associated Works and Supply, erection, modification, testing and commissioning of SCADA for the section. (106.958 RKM/ 119.27 TKM). (in EPC mode). The transaction cost Rs 95.95 crore.

Thirdly, RVNL's JV Salasar Techno Engineering and the company emerged as the Lowest Bidder (L1) from Energy Development Corporation Limited (EDCL) for "Plant Design, Supply and Installation of 45.8 km, ll0Kv Double Circuit Rukarara-Huye-Gisagara Transmission Lines. This transaction is aggregated to $7.1522 million.

RVNL Credit Rating:

Additionally, RVNL has assigned Stable Outlook and CARE AAA rating on its long-term bank facilities worth Rs 20 crore. Further, CARE reaffirmed its rating as 'AAA' with a Stable / CARE A1+ rating on its long-term/short-term bank facilities worth Rs 6,480 crore.

RVNL works as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development. The organization undertakes project execution from concept to commissioning and creates project-specific SPVs.

Last year, RVNL paid dividends up to 21.30% amounting to Rs 2.13 per share. Currently, the stock has a dividend yield of 0.81%.