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RVNL Shares Continue To Zoom On Bagging Multi-Crore Orders From BSNL

Jan 17, 2025 - ndtvprofit.com
Rail Vikas Nigam Ltd. (RVNL) saw its share price rise over 6% on Friday, marking the second consecutive day of gains driven by significant order wins from Bharat Sanchar Nigam Ltd. (BSNL). The stock had already surged by over 11% on Thursday following the announcement of major contracts. On January 16, RVNL secured a letter of acceptance from BSNL for a project valued at Rs 9,613.4 crore, focused on developing and maintaining BSNL's middle-mile network under the Bharat Net initiative. This project will follow a design, build, operate, and maintain (DBOM) model with a three-year construction period and a ten-year maintenance contract. Additionally, on January 15, RVNL announced another order from BSNL worth Rs 3,622 crore, also centered on the Bharat Net initiative.

The recent order wins have significantly boosted RVNL's stock, with the share price reaching as high as Rs 436.35 on the NSE before settling at Rs 434.85, up 5.76% as of 10:05 a.m. The stock has risen 80.89% over the past year, with trading volume reaching 6.4 times its 30-day average. The relative strength index stood at 54. Among three analysts tracking RVNL, one recommends a 'buy,' another a 'hold,' and the third a 'sell,' according to Bloomberg data. Despite the positive momentum, the average 12-month consensus price target suggests a potential downside of 41.2%.

Key takeaways:

  • Rail Vikas Nigam Ltd. shares rose over 6% on Friday, continuing a two-day upward trend driven by major order wins from Bharat Sanchar Nigam Ltd.
  • RVNL secured a significant project from BSNL valued at Rs 9,613.4 crore for the development and maintenance of BSNL's middle-mile network under the Bharat Net initiative.
  • The stock has risen 80.89% over the last 12 months, with a total traded volume 6.4 times its 30-day average.
  • Among analysts tracking RVNL, one recommends 'buy', one suggests 'hold', and another advises 'sell', with an average 12-month consensus price target indicating a downside of 41.2%.
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