RVNL: Railway Stock Hits Back-To-Back New 52-Week Highs, Up 27% In 6 Days; Rs 251 Crore Deal, JVs Drive Bulls

Rail Vikas Nigam's (RVNL) engine has been accelerating at high speed since the onset of 2024. RVNL shares are in a six-consecutive day winning streak currently and have touched back-to-back new 52-week highs. The latest driving force for bulls in RVNL shares is winning of new order worth Rs 251 crore and forming joint ventures in key markets.

On January 16, RVNL shares touched a new 52-week high of Rs 231.80 apiece on BSE before ending at Rs 223.50 apiece up by 1.27% with a market cap of Rs 46,600.20 crore.

Notably, RVNL shares have been on a bullish note since January 8, 2024. In this six-day winning streak, the highest rally was of 9% on January 15th and over 6.5% on January 9th. Overall, in these six days, RVNL shares have zoomed by 27.32%.

Before January 8th, RVNL shares ended the first trading week of January 2024 at Rs 184.70 apiece. Hence, there has been a significant jump in RVNL shares, especially since the start of the current week. In a year, the stock emerged as a multi-bagger with an upside of 201.41%.

On January 15, in its regulatory filing, RVNL informed the company emerged as the lowest bidder (LI) for "Supply, Installation, testing and commissioning of 11 KV Line associated works such as 11 KV Line Bifurcation, 11 KV line Interconnection, 11 KV Line conductor Augmentation, LT AB cabling augmentation and conversion of LT Bare conductor to AB cabling under Revamped Reforms-based and Results-linked, Distribution sector (Package-11) in Jabalpur (City), Jabalpur (O&M), Katni, Mandla, Dindori, Seoni, Chhindwara, Narsinghpur, Balaghat, Shahdol, Anuppur and Umariya Circles of MPPKVVCL, Jabalpur Company area.

The transaction is for a consideration of Rs 251.05 crore. The deal is domestically and is expected to be executed in 24 months.

Apart from this, RVNL on Tuesday announced that RVNL has formed one joint venture with Jakson Green. The JV is named JGPL-RVNL EPC Private Limited. Under the JV, RVNL will hold a 49% stake, while a majority stake of 51% will be held by JGPL. The JV will explore opportunities in Solar Power Projects in India and Abroad.

Accordingly, the JV will help RVNL to tap green clean energy projects.

Additionally, RVNL also incorporated a subsidiary company, RVNL Infra South Africa.

In the first week of January, RVNL stated that KRDCL-RVNL JV has received LOA for major upgradation/redevelopment of Varkala Sivagiri Railway Station. The transaction stood for the consideration of Rs 123.4 crore.

Also, on January 2, RVNL signed MoU with REC Limited for mutual benefits by way of RVNL presenting bankable Projects with assured or projected source of revenue/returns, and REC exploring scope and spread of providing finances to such Projects directly with pre-stipulated conditions and returns for itself.

RVNL is also among dividend-paying midcap stocks. In FY23, the company paid a dividend of up to 21.30% amounting to Rs 2.13 per share to its shareholders.

RVNL was incorporated as a Public Sector Undertaking for the mandate to: ​Undertake and execute successfully the project development, financing and implementation of projects related to rail infrastructure. Mobilize financial and human resources for project implementation.