RVNL surpasses BPCL, PNB in market cap ranking; stock zooms 54% in 1 week

At 11:50 am; with Rs 1.33 trillion market cap, RVNL was trading 4.5% higher at Rs 638.25 on the BSE, while, BPCL and PNB's market cap stood at nearly Rs 1.32 trillion, data shows

RVNL in focus: Rail Vikas Nigam Limited (RVNL) has surpassed public sector undertaking (PSU) oil marketing company, Bharat Petroleum Corporation (BPCL) and lender, Punjab National Bank (PNB), in market capitalisation (market cap) ranking as the stock of the state-owned civil construction company continued its upward movement on strong order inflows from railways.

Shares of RVNL hit a new high of Rs 643.95 as they rallied 5.5 per cent on the BSE in Thursday’s intra-day trade after the company said it has received Letter of Acceptance (LoA) from Central Railway for “OHE modification work for Up-gradation of existing 1 x 25 kV Electric Traction System to 2 x 25 kV AT Feeding System in Amla-Nagpur Section in Nagpur division of Central Railway to meet 3000 MT loading target." The cost of the work is Rs 138.46 crore and to be executed within 24 months.

At 11:50 AM, with Rs 1.33 trillion market cap, RVNL was trading 4.5 per cent higher at Rs 638.25 on the BSE, the exchange data shows. In comparison, the BSE Sensex was down 0.28 per cent at 79,698.

BPCL and PNB’s market cap stood at nearly Rs 1.32 trillion, data shows. RVNL has also become more valuable company than other PSUs like Indian Overseas Bank (Rs 1.22 trillion), Bharat Heavy Electricals (Rs 1.16 trillion) and NHPC (Rs 1.12 trillion).

Meanwhile, in past one week, the stock price of RVNL has zoomed 54 per cent. It has more than doubled from its previous month low of Rs 312 touched on June 5.

RVNL is engaged in the business of implementing various types of Rail infrastructure projects assigned by Ministry of Railways (MoR). With RVNL’s growth as a major provider of a variety of rail infrastructure, there is an opportunity of securing rail infrastructure projects overseas.

Meanwhile, RVNL on Wednesday announced that the company has signed MoU with IMS Consultancy Private Limited (IMS) for providing technical and advisory services to RVNL for projects in the field of Railways, MRTS, Tunnels, Roads (Highways & Expressways), Bridges, Building Works, Airports, Ports, Irrigation, Power Transmission and Distribution sector, Solar sector, Wind Sector, Hydro Power Sector etc. in Nepal.

Earlier this week, RVNL said it received LoA from Maharashtra Metro Rail Corporation (Nagpur Metro) for construction of six elevated metro stations namely Cantonment, Kamptee Police Station, Kamptee Municipal Council, Dragon Palace, Golf Club and Kanhan River Metro Station. The company said the project cost is Rs 187.34 crore and the order would be executed over 30 months.

In a seperate filing, RVNL said it has signed MoU with TATWEER Middle East and Africa LLC for using RVNL’s expertise in railway sector, developing joint capabilities in design and execution of various rail-based work in MENA region and European countries. RVNL would also supply, design and help in implementation and commissioning of smart city, digital transformation and professional engineering services.

Besides, RVNL emerged as the lowest bidder (L1) from SER HQ Electrical, South Eastern Railway for design, supply, erection, testing & commissioning of 132 KV traction substation, sectioning post (SPs), and sub sectioning post (SSPs) in 2x25KV System on Kharagpur-Bhadrak section of Kharagpur division of South Eastern Railway to meet 3000 mt. The project would take 18 months to execute and the cost of work stands at Rs 202.87 crore.