Rail Vikas Nigam shares zoom after company wins Rs 1,058-crore orders from Gujarat Metro Rail

Rail Vikas Nigam Ltd (RVNL) shares surged on Wednesday, a day after the company said it emerged the lowest bidder for two metro projects from Gujarat Metro Rail Corp Ltd (GMRCL). The RVNL stock rose by as much as Rs 3.7 or 4.9 per cent to Rs 78.1 apiece on BSE.

The two projects -- estimated at Rs 1,058.1 crore -- are to be completed in 19 months, RVNL said in a regulatory filing. 

The orders involve the supply, erection, testing and commissioning of the power supply receiving and distribution system, 750VDC third rail traction electrification and the supervisory control and data acquisition (SCADA) system for the first phase of the Surat Metro Rail Project and the second phase of the Abmedabad Metro Rail Project, Rail Vikas Nigam said. 

RVNL had participated in bidding in a consortium with Siemens India, with Siemens as the lead partner with a 65 per cent share.

Earlier this month, Rail Vikas Nigam said received orders totalling Rs 1,339 crore from Southern Railways, Chennai Metro Rail and Gujarat Metro Rail Corp.

RVNL is among the top performing stocks in the past few months. 

RVNL shares have more than doubled in value in the past three months, a period in which the Nifty50 benchmark has risen 3.9 per cent.

Rail Vikas Nigam is yet to report its financial results for the ongoing earnings season. 

For the quarter ended September 2022, the company reported a net profit of Rs 298.6 crore, up 34.5 per cent compared with the corresponding period a year ago. Its quarterly revenue came in at Rs 4,908.9 crore, as against Rs 4,025.8 crore for the year-ago period. 

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