Shares of Rail Vikas Nigam Ltd (RVNL) jumped around 4 percent on October 17 as the public sector firm emerged as the lowest bidder for a project worth Rs 270 crore from Maharashtra Metro Rail Corporation.
The project involves the construction of 10 elevated metro stations and is to be executed within 30 months from the date of contract award.
The project includes the construction of seven elevated metro stations in Reach 3A namely Hingna Mount View, Rajiv Nagar, Wanadongri, APMC, Raipur Hingna Bus Station, and Hingna. Three elevated stations will also be constructed in Reach 4A at Pardi, Kapsi Khurd, and Transport Nagar.
Earlier this month, RVNL emerged as the lowest bidder for an East Coast Railway project for the third and fourth line between Jarapada & Talcher Road and the construction of a new line between Angul-Balram, which is part of the MCRL Internal Corridor Phase-I doubling project.
The scope of the order involves the execution of balance earthwork in formation, minor bridges, major bridges, P.way linking works, supply of ballast, S&T buildings, level crossings, and other miscellaneous works between Jarapada and Talcher road.
This excludes the station yards in connection with the third and the fourth line of the Jarapada-Budhapank project and between Angul and Balram, including yards of MRCL Inner corridor Phase-I doubling.
Shares of RVNL closed nearly a percent higher at Rs 478.45 on the National Stock Exchange (NSE) in the previous session. The stock has risen around 162 percent so far this year, significantly outperforming Nifty's returns of 14.8 percent.
In the last year, the counter has risen around 180 percent, more than doubling investors' capital, compared to Nifty's gain of 26 percent during this period.
RVNL stock was among mutual funds' top stock picks for September as it saw MFs buying around 28 lakh shares. Foreign institutional investors were net buyers of RVNL shares during the July-September quarter.
According to the latest shareholding data, FIIs own a 5.05 percent stake or 10.52 crore shares of the railway infrastructure company as of September 30. This is an increase from the 3.13 percent stake or 6.52 crore shares they held at the end of June.
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