Rail Vikas Nigam Ltd (RVNL) shares experience profit booking after an initial surge of 4% following news of the company winning a significant Rs 197-crore order from Madhya Kshetra Vidyut Vitaran Company based in Bhopal. RVNL’s stock price had almost doubled in the past year, and investors may have decided to cash in on some of their paper profits. As of 9:55 am, shares of RVNL were trading 1.5% lower at Rs 63.95 on the BSE.
The company announced that it had secured seven orders in 2023 and had won the latest order for the Bhopal region to supply, install, test, and commission a new 11 KV line for bifurcation and interconnection.
The Union Budget presented on February 1 provided Indian Railways with a capital expenditure boost of Rs 2.4 lakh crore for the financial year 2023-24, marking a 65.6% increase from the previous year. Finance Minister Nirmala Sitharaman highlighted in her budget speech that “The Indian Railways capital outlay has been set at 2.40 lakh crore, highest ever; nine times of what was in 2013.”
Market participants are optimistic that railway-related companies will benefit significantly from the highest-ever allocation to the sector. RVNL’s success in securing orders is indicative of the potential growth opportunities within the railway industry.
Rail Vikas Nigam Ltd was Incorporated in 2003 by the Govt. of India, it is engaged in the business of implementing various types of Rail infrastructure projects assigned by MoR including doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, Production Units and sharing of freight revenue with Railways as per the concession agreement entered into with Ministry of Railway.
For More Latest News Click Here