Multibagger railway PSU in focus on Wednesday after ₹500-crore order win, stock down 23% YTD: Buy or sell? | Stock Market News
Stocks to watch: State-owned civil construction firm, Rail Vikas Nigam Limited, on Tuesday, February 18, announced that the company has secured an order worth ₹554.47 crore to build infrastructure developments for the Bengaluru Suburban Railway Project, according to the exchange filling.
The exact cost of the project is a little over than ₹554.47 crore and is expected to be completed in 24 months or 2 year time period, according to the BSE filing.
“A Letter of Acceptance has been received from Rail Infrastructure Development Company (Karnataka) Limited (K-RIDE) for ‘Package C4A: Construction of Nine (9 Nos.) Stations i.e. Elevated (1 No.) and At-Grade (8 Nos.) BSRP Stations of Corridor-4A at Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi, Kaggadasapura including Civil, Structural, Entry / Exit Structure, Steel FOB, Roof Structures, PEB works Architectural finishes and E&M Works and Detailed Design & Engineering (DOC) with all associated works for Bengaluru Suburban Rail Project (BSRP)” said RVNL in the statement.
RVNL Share Price
RVNL shares closed 2.77 per cent lower at ₹333.10 after Tuesday’s stock market close, compared to ₹342.60 in the previous market session. The company announced the order book update after the market operating hours on February 18.
Rail Vikas Nigam Ltd shares hit their 52-week high level at ₹647 on July 15, 2024, while the 52-week low level was at ₹213 on March 14, 2024, according to data collected from the BSE website. The PSU firm’s market capitalisation was at ₹69,452.02 as of market close on February 18.
RVNL shares have given stock market investors over 1,300 per cent return on their investment in the last five years and 24.56 per cent returns in the last one-year period. However, the stock is trading 22.53 per cent lower on a year-to-date (YTD) basis in 2025.
RVNL stocks to buy?
According to Axis Securities, RVNL has a robust order book and the firm is improving on its margins with the support from the government initiatives. The brokerage firm also highlighted key risks like a potential delay in execution of projects and the increase in costs for the company, which can affect the company’s business.
“The company maintains a robust order book, supported by a clean balance sheet, strong return ratios, and a healthy dividend payout,” said the brokerage assigning a “BUY” rating to the stock.
Target Price at ₹501; Potential Upside of 10 per cent from current market price (CMP).
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
