RVNL soars after railway PSU bags Rs 543-crore Indore Metro Rail project; should you buy, sell or hold stock?

RVNL share price NSE, RVNL new order news: Shares of Rail Vikas Nigam Ltd (RVNL) shares soared on Tuesday after the company’s joint venture with URC emerged the lowest bidder for an order worth Rs 543 crore from Madhya Pradesh Metro Railway Corporation. The order involves the designing of parts and the construction of five elevated metro stations. The railways PSU’s stock gained as much as four per cent to Rs 185.6 during the session on NSE, coming within Rs 14 of a record high registered in September. The counter ended at Rs 178.25, down 0.1 or 0.06 per cent on NSE.

"It is hereby informed that “M/s RVNL-URC JV emerges as the Lowest Bidder (L1) for “Part Design and Construction of Elevated Viaduct, Five (5) Elevated Metro Rail Stations (viz. Shaheed Bagh, Khajrana Chauraha, Bengali Chauraha, Patrakar Colony & Palasia Chauraha) and Ramp between Chainages 31+755 to 34+898.061 & 3+669.547 to 5+862 for Indore Metro Rail Project,”  the company informed the exchanges post market hours on Monday.   

Should you buy, sell or hold RVNL shares now? Here’s what analysts say 

Zee Business analyst Kushal Gupta recommends buying RVNL shares for a short-term target of Rs 183 with a stop loss at Rs 175. 

"RVNL seems reasonably placed at this point in time you have a PE ratio of around 26 which is not exactly expensive and since the potential for growth is tremendous, its core business is obviously all types of railway projects, new lines, gauge conversion," Metro projects, bridges, railway electrification, Hemen Kapadia, Sr VP Institutional Equity of KR Choksey Stocks & Securities said.

"Keeping in mind that the government has that said by the year 2027 railway tickets will be available on demand. indicating that there is going to be huge investment in the sector and hence a plethora of opportunities for RVNL," he added.

"So one would say that it is in the right place at the right time and looking at the flavour for railway stocks and keeping in mind the potential from a longer point of view I would be positive on the stock especially on declines," he further said.

RVNL share price: Past performance 

In 2023 so far, the stock has rewarded investors with a return of more than 150 per cent, outperforming a rise of more than seven per cent in the headline Nifty50 index. RVNL shares have gained nearly 50 per cent in six months. 

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