The shares of Rail Vikas Nigam Limited (RVNL) rallied 9 percent to Rs 117.50 on BSE at 10:41 AM after the company received ‘Navratna’ status. In a recent corporate filing with BSE, the Department of Public Enterprises granted RVNL the ‘Navratna’ status.
The Government of India allows greater financial autonomy to certain Central Public Sector Enterprises. These companies are known as Navratna Companies. Navratna Companies have enhanced financial autonomy with the freedom to invest an amount of up to Rs 1,000 crores without requiring explicit government approval.
RVNL has also emerged as the lowest bidder for the Mahi Bajaj Sagar Project, Banswara, Rajasthan. In this irrigation project, the company will plan, design and construct the main canal and structures including the associated distribution system. The order should be executed in 42 months.
The cost of the project is Rs 2,249 crore.
Stock performance
The RVNL stock has given a return of 248.7 percent in the last one year. Thus, comfortably outperforming the benchmark Nifty 50 index which has given a return of 6.32 percent during the same duration.
Whereas on a 5-year basis, the RVNL stock has given a return of 492.66 percent again outperforming Nifty 50 by a considerable margin, while the index has given a return of 70.97 percent during the same period.
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