Rail Vikas Nigam Ltd share price jumped more than 4 percent in the morning trade on March 17 after the firm announced getting a Rs 112-crore order in Madhya Pradesh.
The stock hit a high of Rs 63.76 on BSE, up 4.05 percent. At 9.30 am, the stock was trading at Rs 64.30 on BSE, up 3.83 percent from its previous close.
According to an exchange filing, RVNL secured the contract for the supply, installation, testing, and commissioning of various 11 KV line-associated works in Singrauli, Sagar, Damoh, Chhatarpur, Panna and Tikamgarh Circles of MPPKVVCL in the Jabalpur company area. RVNL was the lowest bidder.
RVNL director of operations Rajesh Prasad told CNBC-TV18 recently that the company's order book was projected to reach between Rs 75,000 and 1 lakh crore in FY24, with 20 percent of the orders being obtained through bidding.
In January, RVNL and its joint venture partners were selected as the top bidder for a railway project consisting of 200 trainsets at a cost of Rs 120 crore a set.
With expertise and experience in diversified infrastructure projects from rails, roads, marine, hill areas, metro trains and other areas, RVNL is well placed to capitalise on these opportunities, Asit C Mehta Investment Interrmediates said in a note in February.
“Going ahead, we expect the company’s revenue to grow at a CAGR of ~20 percent over FY23-FY26E. Hence, we recommend RVNL with a target price of Rs 120 based on FY26E EPS of Rs 12.43; it’s available at PE of 5.8x, which is at a lower end valuation of last five years,” it said.