A PSU railway stock in vogue on D-Street again - heres whats driving it higher
RVNL share price NSE today: Rail Vikas Nigam Ltd (RVNL) shares were in high demand on Dalal Street, trading in modest volumes, after the railway infra PSU emerged the lowest bidder (L1) bidder for a Haryana Orbital Rail Corp (HORC) project.
RVNL share price NSE today: Rail Vikas Nigam Ltd (RVNL) shares were in high demand on Dalal Street, trading in modest volumes, after the railway infra PSU emerged the lowest bidder (L1) bidder for a Haryana Orbital Rail Corp (HORC) project. The RVNL stock gained by Rs 0.80 or 1.27 per cent to Rs 63.75 apiece on NSE at the strongest level of the day so far.
RVNL share price: Railway stock bucks market trend
At 12:35 pm, RVNL shares traded at Rs 64 apiece, holding on to the green with a gain of 1.6 per cent. more than 10.7 lakh RVNL shares changed hands on BSE as against a daily average of about 12 lakh in the past two weeks, according to provisional exchange data.
RVNL stock price: What's driving the shares higher?
RVNL has emerged as the L1 for the composite contract package in connection with the new BG railway line of the Haryana Orbital Rail Corporation (HORC) project of the Haryana Rail Infrastructure Development Corporation, according to a regulatory filing. The project is expected to be executed within 1,460 days.
Earlier this month, RVNL emerged the L1 for manufacturing 200 Vande Bharat trains in a joint venture with Russia's Metrowagonmash. The tender, estimated at Rs 58,000 crore, includes maintenance of the trains for 35 years.
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RVNL share price target 2023
Analysts peg target prices as high as Rs 90 for RVNL stock
Market analyst Vikas Sethi recommends RVNL for the long term (9-10 months) with a target price of Rs 90 -- which implies an upside potential of 42 per cent from Friday's closing price.
He told Zee Business that the company leads in rail infra projects and has an order book value of Rs 75,000 crore.
Sethi mentioned good fundamentals of RVNL, which, he said, "even has a good dividend yield of three per cent".
RVNL share price: Historical performance
On a YTD basis, the stock has lost around seven per cent of its value, in line with a similar loss in the Nifty50 headline index.
RVNL shares dividend yield
RVNL's dividend yield averaged at 18.3 per cent last year given its payout in two instalments:
- March 24: 15.8 per cent
- September 22: 2.5 per cent
Also read- Income Tax Return filing: General FAQs taxpayers should know
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