RVNL stock surged 250% this year, setting a new record. Is it wise to purchase multibagger stock? Monday saw a fresh all-time high for Rail Vikas Nigam Ltd (RVNL) shares following the company’s announcement that it had received a Letter of Acceptance from Central Railway.
In the Wardha-Ballarshah Section of the Nagpur division, the contract entails OHE modification work to upgrade the current 1 x 25 kV Electric Traction System to a 2 x 25 kV AT Feeding System. The Rs 132.59 crore project is expected to be finished in 24 months.
In early trade on Monday, RVNL’s shares shot up 3.26% to an all-time high of Rs 647. With gains of 151% in the last three months alone, and 245% in 2024, the railway PSU has produced multibagger returns.
Investor trust has been greatly increased by the company’s success in obtaining new contracts and developing strategic alliances, such as its arrangement with IMS Consultancy Pvt Ltd on July 10.
Business Today was informed by WealthMills Securities Director of Equity Strategy Kranthi Bathini that the stock is rising because of anticipations of higher investment on railroad infrastructure before to the budget’s announcement on July 23.
Bathini emphasized that recent order wins, both domestically and globally, have contributed to the company’s improved earnings visibility.
“Over the last year, the stock has performed incredibly well. Given a boost in the rail PSU’s financial visibility, recent order wins both domestically and internationally have kept it in the spotlight, Bathini told Business Today.
“Those in holding are free to stay in their posts. “This company is one that long-term investors should buy at every dip,” he suggested.
As the operational division of Indian Railways, RVNL oversees turnkey projects from conception to commissioning. This covers planning, creating estimates, awarding contracts, and handling every aspect of the project.
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