Shares of Rail Vikas Nigam Ltd (RVNL) surged as much as 4 percent on Wednesday as the company has emerged as the lowest bidder for both the Surat and Ahmedabad Metro Rail projects.
At 9:23 am, shares of the company were trading at Rs 77.2, up 3.7 percent, on the BSE. The stock has soared 104 percent in the past three months and has rallied 205 percent in the past three years.
The Rs 673.80-crore Surat Metro Rail project job for Phase-I, while The Ahmedabad Metro Rail project job is worth Rs 384.30 crore for its Phase-II. Both the contracts are for supply, erection, testing and commissioning of power supply receiving and distribution system, 750V DC third rail traction electrification and SCADA system. Both the projects need to be executed in 19 months.
Both projects have been awarded by the Gujarat Metro Rail Corporation to a consortium of Siemens and RVNL.
RVNL executes all types of railway infrastructure works such as new line, gauge conversion, doubling or third or fourth line, railway electrification, workshops, hill railway projects, institutional buildings, mega bridges, metro railway, among other works. It has achieved a highest ever turnover of Rs 19,381.71 crore in 2021-22 as compared to Rs 15,403.65 crore in 2020-21.
Macquarie believes this contract implies an order inflow of Rs 688 crore with an execution timeline of 19 months. It added that locomotive is a key driver for the company’s order inflow in the near term.
The foreign brokerage firm has an ‘outperform’ rating on the stock with a target price of Rs 3,330.
Besides, even Siemens is seen benefiting from this order win. With this, Siemens’ stock rose 1.6 percent on the BSE to Rs 2,990 on Wednesday.
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