RVNL shares jump after railway infra firm bags order from North Western Railway

Rail Vikas Nigam Ltd (RVNL) shares were in demand on Dalal Street on Thursday, a day after the infrastructure arm of the Indian Railways won a contract from the North Western Railway, one of the zones under the Indian Railways. The stock of state-run RVNL gained by Rs 2.1 or 2.9 per cent to Rs 74.9 apiece at the strongest level of the day on BSE. 

According to a regulatory filing, the order is worth Rs 63.1 crore, and meant to be completed within nine months. It involves the provisioning of automatic block signalling on the 51.1-kilometre long Madar-Sakhun section of the Jaipur division of the North Western Railway, according to the statement. 

RVNL shares traded firmly in the green in modest volumes. At 2:15 pm, the RVNL stock was up one per cent for the day at Rs 73.6 apiece on the bourse. As many as 14.6 lakh Rail Vikas Nigam shares changed hands on BSE for the day so far, as against a daily average of 24.8 lakh in the past two weeks, according to provisional exchange data.

Rail Vikas Nigam Ltd (RVNL) shares: Historical performance

Listed in April 2019, RVNL shares have rewarded investors with a return to the tune of 111 per cent in the past one year, as of April 13, a period in which the Nifty50 headline index has managed a rise of two per cent. 

What is North Western Railway (NWR)?

The North Western Railway comprises four divisions — Jaipur, Bikaner, Jodhpur and Ajmer, with a total of 578 stations covering a total of 5,449 route kilometres, according to the zone's website, nwr.indianrailways.gov.in. The North Western Railway covers total track kilometers of 6,559.5 kilometres.

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