Rail Vikas Nigam shares were trading 3 per cent higher after the company emerged as L1 bidder for Rs 1,088.49-crore project. RVNL has emerged as the lowest bidder (L1) for the composite contract package in connection for the new BG railway line of the HORC project of the Haryana Rail Infrastructure Development Corporation. The cost of the project is Rs 1,088.49 crore and the project is expected to be executed within 1,460 days.
The composite contract package in connection with new BG Railway Line of HORC project, including, design and construction of twin tunnel using NATM and cut and cover method from 24.880km to 29.580km and design nd installation of ballast less track (excluding supply of rails) from 24.856 km to 29.680 km.
Also, detailed design, supply, installation, testing and commissioning of general electrical services, including supply, erection, testing and commissioning of 11 kV HT/LT power and control cable network, GIS substation (11/0.433) kVA. tunnel lighting system, etc. from km 24.880 to km 29.680.
The design and construction of embankment, bridges and other miscellaneous works from 12 km to 18 km.
The President of India has approved the appointment of Shri AK Khandelwal, Principal Executive Director (GS), Railway Board as part-time government director on the board of Rail Vikas Nigam Limited (RVNL) with immediate effect, till he holds the post of Principal Executive Director (GS) of the Railway Board or until further orders, whichever is earlier.
The share touched a 52-week high of Rs 84.15 and a 52-week low of Rs 29 on November 29, 2022 and June 21, 2022, respectively. It was trading 23.7 percent below its 52-week high and 121.41 percent above its 52-week low on Monday morning.
Earlier this month, company emerged as the lowest bidder for manufacturing cum maintenance of Vande Bharat Trainsets including Up-gradation of the Government Manufacturing Units & Trainset Depots” in JV.
Also, emerged as the lowest bidder for a project worth (without taxes) Rs 111.85 crore
In the December quarter of this fiscal, net profit climbed 30.51% to Rs 382.42 crore against Rs 293.01 crore during the previous quarter ended December 2021. Sales stood flat at Rs 5012.09 crore in Q3 against Rs 5049.24 crore during the quarter ended December 2021.
Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said, “The stock after hitting the peak zone of Rs 81.75 has witnessed a decent correction to touch the low of Rs 56 and once again with a lower formation near Rs 67 zone on the daily chart has slipped to some extent. The stock needs to cross decisively the Rs 67.50 level, which is also the significant 50EMA zone for the trend to improve and expect for further rise. The downside major support would be 56 level below which the trend and bias would turn negative.
It’s important to cross the Rs 67.50 zone to establish some conviction for further improvement of the trend and expect targets of Rs 73 and Rs 82 levels for the short term time frame. So technically, only after a decisive breakout above Rs 82 zone can confirm the next upside projection target for Rs 100 levels with momentum picking up.”
Since the last week of December, the company has made at least a dozen announcements about successful bids for projects. But the stock is a good 25 per cent below the peak seen in November, and has been struggling so far this calendar year.
Technical analysts say the charts indicate a distribution pattern, meaning some of the smart investors may have got out for the time being. The company is likely to end FY23 with a net profit of Rs 1,400 crore based on the current quarterly run rate. According to the management, the target bottomline for FY24 is Rs 2,100, a 50 per cent jump.
RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.
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