RVNL Gains 3% After Winning Two Contracts Worth Around Rs 651 Crore

Shares of Rail Vikas Nigam Ltd. rose 3% on Monday after it won two contracts worth approximately Rs 651 crore.

The first contract worth around Rs 495 crore is from National Thermal Power Corp. for civil and hydro-mechanical works to be executed within a period of five and a half years, according to an exchange filing.

Separately, the company also said that it has emerged as the lowest bidder for a contract worth Rs 156 crore for automatic signaling by Southern Railway Ltd. The time period for completion of the project is 750 days.

Shares of the company rose as much as 3% during the day to Rs.386.80 apiece on the National Stock Exchange. It was trading 0.49% higher at Rs 375.60 per share, compared to a 0.23% advance in the benchmark Nifty at 11:17 a.m.

The stock has risen 107.35% on a year-to-date basis and 208.9% in the last 12 months. The total traded volume so far in the day stood at 0.37 times its 30-day average. The relative strength index was at 64.04.

All three analysts tracking the company have a 'hold' rating, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 17.5%.