Miniratna Railway stock hits 5% upper circuit after securing ₹1,545 crore contract
The shares of Rail Vikas Nigam (NS: RAIV ) Ltd (RVNL) jumped 4.96% on Wednesday’s early Trades. Its shares were locked in an upper circuit at ₹ 66.70 apiece. The company announced that it has been appointed as the project implementation agency for the UTF Harbor Project in Maldives by the Ministry of External Affairs.
The company in a stock exchange filing informed the bourses that this is a strategic project of the Government of India and the cost is ₹ 1544.60 crores. The time period by which the project is expected to be completed is 24 months.
Last week, the company announced that it has been awarded a contract for the construction of a depot cum workshop from Gujarat Metro Rail Corporation Ltd. The total awarded cost of the project is around ₹ 199 crores, excluding taxes, duties, and provisional sum.
Earlier this month, it announced that it formed a joint venture with Kyrgyzindustry-OJSC (Open Joint Stock Company) for the development of infrastructure in Kyrgyzstan.
RVNL is a Miniratna Public Sector Unit (PSU) that was incorporated in 2003 by the Government of India. It is engaged in the business of implementing various types of Rail infrastructure projects assigned by the Ministry of Railways.
RVNL is a mid-cap company with a market capitalization of 13,250 crores. It has an ideal return on Equity of 19.66% and an ideal debt-to-equity ratio of 0.91. Its shares are trading at a price-to-equity ratio of 9.80, which is higher than the industry average of 8.56, indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
The post Miniratna Railway stock hits 5% upper circuit after securing ₹1,545 crore contract appeared first on Trade Brains.
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