Shares of Rail Vikas Nigam ended in a 5 percent upper circuit on Thursday, outperforming in a volatile market. The stock is up in six out of the nine trading sessions this year, gaining 10.5 percent during this period.

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The company has been in focus after it won three orders over a period of six days.

Last Friday, on January 6, the company won its second order from the Gujarat Metro Rail Corporation for the Surat Metro project. The order, worth Rs 166 crore was received by the Joint Venture of Rail Vikas Nigam and ISC Projects Pvt. Ltd for Phase 1 of the Surat Metro. The project is supposed to be completed within 22 months. It had earlier won an order from Gujarat Metro Rail Corporation on December 23.

On January 11, the company received the Letter of Acceptance (LoA) from the Chennai Metro Rail Ltd. for a total contract value of Rs 1,134.11 crore. The project involves the construction of an elevated viaduct, nine elevated metro stations and the stabling of the viaduct at SIPCOT.

Last night, it received the letter of award for provision of automatic block signaling in the Taduku-Renigunta section in the Southern Railway. The project cost is worth Rs 38.97 crore.

Just before the end of the year, the company was also appointed as the project implementation agency for the UTF Harbor Project in Maldives. The strategic project of Government of India is worth Rs 1,544.6 crore.

The stock is also in focus ahead of the Union Budget announcement on February 1. 19 percent of the overall government capex is earmarked for railways. Central government capex in the current financial year has increased 16.3 percent year-to-date, led by strong capex in the railways, which has increased 77 percent year-on-year, according to a note from Nomura.

The brokerage further stated that Indian Railways is ramping up the redevelopment of major stations across the country with 40 of them currently being redeveloped of which 14 are in the tendering stage and may be awarded in the next five months.

Shares of RVNL have gained for two straight days. Both trading and delivery volumes on Thursday were five times higher than average. While delivery volumes stood at 1.2 crore shares, well above the average of 25 lakh, trading volumes were at 3.04 crore, compared to the average of 61.64 lakh.

The stock is now 10 percent away from its recent 52-week high of Rs 84.10.

(Edited by : Hormaz Fatakia)

First Published:Jan 13, 2023 7:15 AM IST