Shares of Rail Vikas Nigam Ltd (RVNL) extended their record run in Monday’s trade. The stock surged 7.92 per cent to hit an all-time high of Rs 399.70. This comes after the company emerged as the lowest bidder for a project by Maharashtra Metro Rail Corporation (Nagpur Metro).
“Rail Vikas Nigam Limited emerges as the lowest bidder (L1) from Maharashtra Metro Rail Corporation Limited (Nagpur Metro) for “construction of 6 Nos elevated metro stations (Cantonment, Kamptee Police Station, Kamptee Municipal Council, Dragon Palace, Golf
Club and Kanhan River Metro Station) between Ch. – 7576.78mm to Ch – 13457.76m in Reach 2B of NMRP Phase 2,” the company said in an exchange filing.
The project, valued at Rs 187.34 crore, is to be completed within 30 months.
At 10:25 am, the scrip was trading 3.87% higher at Rs 384.7 on BSE. The stock has also surged over 110% year-to-date, while it has gained 230% in the past one year.
On technical setup, support on the counter could be seen at Rs 345. Immediate resistance may be found at Rs 400.
Jigar S Patel, Senior Manager – Technical Research at Anand Rathi Shares and Stock Brokers, said, “Support will be at Rs 345. And, immediate resistance will be at Rs 400. A decisive close above Rs 400 may trigger a further upside. The expected trading range will be between Rs 325 and Rs 415 for a month.”
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, “Near-term resistance will be at Rs 400. And, a decisive breach above the said level is required for more upside.”
RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry to execute projects assigned to it. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.
The government owned a 72.84 per cent stake in the state-run firm, based on the March 2024 quarter shareholding pattern.
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