RVNL Share Price: Railway PSU Stock Zooms 9.2% in Morning Trade, What’s Fuelling The Rally?

RVNL Share Price Today: Shares of Rail Vikas Nigam (RVNL) surged nearly 9.2% during Friday's intraday trading session. The sudden spurt in RVNL shares has come a day after the company confirmed its order win from the central government.

RVNL shares opened higher at Rs 318 per share on BSE on Friday. The company scrip surged to an intraday high of Rs 415 apiece in morning trade.

RVNL Share Price Movement

The company scrip was trading 9% higher at Rs 410 per share on BSE at 10:50 am. The midcap railway infrastructure stock touched its 52-week-high mark of Rs 647 per share on BSE on 6 July, 2024. The company scrip tanked to its 52-week-low mark of Rs 275.9 per share on BSE 16 May, 2024.

RVNL Order Win

The public sector enterprise on Thursday announced that it has received an order worth Rs 115.79 crore from Central Railway. RVNL has bagged an order for the modification work for up-gradation of the existing 1x25 KV Electric Traction System to meet a target of 3000 MT Loading. RVNL has stated that the order win is in the normal course of the company's business.

"It is hereby informed that Rail Vikas Nigam Limited has received LOA from Central Railway for "OHE Modification Work for Up-gradation of existing 1x25 KV Electric Traction System to 2x25 KV at Feeding System in Itarsi - Amla Section in Nagpur Division of Central Railway to meet 3000 MT Loading Target," the company said in its BSE filing on Thursday.

The company has fixed 24 months as the project deadline. The company scrip's value has recovered significantly over the past one month. According to BSE data, RVNL share price value has increased nearly 26.81% on BSE and nearly 13.97% in three months. However, the RVNL stock value is still down 4.09% year to date (YTD).

RVNL Stock Price Recommendation

Antique stock broking in its latest note retained a 'Sell' rating for RVNL stock with a target price of Rs 215 per share.

The company stock also witnessed a spurt in its volume by 2.6 times during morning trading hours. More than 1,18,870 shares were sold, and 1,84,739 stocks were bought on BSE at 11 am. Its trading volume surged nearly to 42,309 at 10 am on Friday.

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