Shares of railway PSU stock RVNL on Tuesday rallied 8 per cent to Rs 322. RVNL shares jumped in reaction to the company posting a 25 per cent year-on-year (YoY) increase in its net profit to Rs 433.32 crore for Q4FY24, while the revenue from operations stood at Rs 6,700.69 crore, up by 17 per cent YoY. The company also announced a dividend of Rs 2. 11 per share for the financial year 2024.
Also, the PSU bagged an order from South Eastern Railway. The company was informed about the order win on Monday through an exchange filing with the bourses.
“Rail Vikas Nigam Limited has received letter of acceptance (LoA) from SER HQELECTRICAL/South Easter Railway for designing, supply, erection, testing and commissioning for upgradation of electric traction system from 1×25 KV to 2×25 KV traction system for Kharagpur section of Kharagpur division of South Eastern Railway to meet 3000 MT loading target,” said RVNL in the filing.
Following the announcement of order win, shares of RVNL surged more than 7.65 per cent to Rs 322.50 on Monday, commanding a total market capitalization of more than Rs 67,000 crore. The scrip had settled at Rs 299.65 in the previous trading session on Saturday.
RVNL shares have soared more than 190 per cent from its 52-week low at Rs 110.50 hit on May 31, 2023. The stock has surged more than 80 per cent in the year 2024 so far, while the stock has nearly doubled investors wealth in the last six months period. Even in the last one month, it is up 25 per cent.
In an separate exchange filing, the company said that the President of India has approved the appointment of NC Karmali as the part-time Government nominee director on the board of Rail Vikas Nigam with immediate effect, till he holds the post of executive director/Gati Shakti, Railway Board or further orders, whichever is earlier.
Incorporated in 2003 by the Ministry of Railways, Rail Vikas Nigam Limited is a project executing agency. It is engaged in the business of mobilization of financial resources, rail project development, enhancing golden quadrilateral and port connectivity by implementing rail projects and raising extra-budgetary resources for Indian Railway project execution.
The PSU counter raised a total of Rs 481.57 crore via its IPO launched in April, 2019. The company issued its shares at Rs 19 apiece. The stock has zoomed about 1,600 per cent or 16 times from its issue price. Each lot of the PSU counter has delivered a return of more than Rs 2.35 lakh to the investors, if held so far.
Other Railway Shares
IRFC on Tuesday rallied 5 per cent on BSE after the Q4 profit rose while IRCON International shares jumped 8 per cent to a fresh peak of Rs 296 ahead of its Q4 results due today.
Jupiter Wagons shares among other rail stocks also witnessed a jump of 2.7 per cent to Rs 529.75 respectively.
Jupiter Wagons on Sunday informed the exchanges that the board of directors has approved to issue and allot up to 28.72 lakh convertible warrants to Tatravagonka A.S., one of the promoters of the company, on a preferential basis at a price of Rs. 470 (including a premium of Rs. 460/-) at an aggregate amount not exceeding Rs. 135 crore.
Shares of other railway stocks such as RailTel surged 4 per cent to Rs 429 on BSE today.
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