RVNL shares hit lower circuit amid heavy sell-off, trading halted

Shares of Rail Vikas Nigam Ltd, NSE: RVNL, locked in lower circuit on Friday, December 23, as heavy selling in the counter dragged it 5 per cent. The stock opened flat at Rs 66.45 on NSE and hit the lower circuit at Rs 63.15. The trading was suspended thereafter. RVNL is a Mini Ratna company under the Ministry of Railways.

Manoj Dalmia, founder and director, Proficient Equities, said that investors can avoid investing in the stock currently as markets are under selling pressure. He said that for long-term prospects, the stock is great."Rs 57 can be a good place to accumulate which is acting as a support," he said.

The benchmark indices today saw a sharp correction amid weak global cues. While BSE Sensex crashed over 800 points to trade below the 60,000 level, Nifty 50 tanked 200 points to give up 17,900 level.

Earlier on Thursday, RVNL through an exchange filing informed about receiving a contract for the construction of Bhesan depot cum workshop for Surat Metro Rail Project for Rs 198.93 crore.

"RVNL has been awarded contract for Construction of Bhesan Depot cum Workshop which includes DDC, BCC and associated E&M works under Corridor- C2, Bhesan to Saroli, for Surat Metro Rail Project Phase- I, DC 2" by Gujarat Metro Rail Corporation (GMRC) Limited. (SPV of Govt. of India & Govt. of Gujarat)," the company said in an exchange filing. 

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"The total awarded cost of project is Rs 198, 93, 34,549.77/-(Excluding taxes, duties and Provisional Sum," it added.

YTD, RVNL stock has zoomed around 82 per cent, resulting in wealth gain for the shareholders. In perspective, RVNL shares that quoted Rs 35.30 on January 3, are now available for Rs 64 levels. At current levels, the company has a market cap of Rs 13.17 thousand crore.

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