RVNL zooms 6% on MoU with Airport Authority of India worth Rs 294 cr

Shares of Railway Vikas Nigam, the construction arm of Indian Railways zoomed 6 per cent on BSE in Tuesday's intraday trade against a 0.36 per cent dip in BSE Sensex

Shares of Railway Vikas Nigam Limited, the construction arm of Indian Railways zoomed 6 per cent at Rs 265 a piece in Tuesday’s intraday trade against a 0.36 per cent dip in BSE Sensex. 

The rally in the stock was seen after the company on March 22 notified the exchanges on entering into a Memorandum of Understanding (MoU) with the Airports Authority of India (AAI) to build an underpass linking the operational area to the AAI residential colony in Kolkata. The project is estimated to cost Rs 229.43 crore.

A day earlier on March 21, the company also emerged as the lowest bidder for construction of an electric traction system for Rajkharsawan -Nayagarh- Bolani section of Chakradharpur division of South Eastern Railway. The cost of this project is estimated at Rs 167.28 crores

Thus far the shares of RVNL have rallied 45 percent in the month of March, while it has rallied 58 per cent in the last six months. The stock of the Railway PSU is trading at price to equity multiple of 35 times. RVNL had hit its 52 week high on January 23,2024 at Rs 345.60. 

In Q3FY24, RVNL registered a 6.2 percent decrease in its net profit to Rs 358.6 crore, down from Rs 382.4 crore in the corresponding period of the previous year. In the third quarter of the current fiscal year, revenue from operations for the Indian Railways' PSU declined by 6.4 percent to Rs 4,689.3 crore, down from Rs 5,012.1 crore in the corresponding period last year.