Why RVNL Stock Price Surged Following Investor Concall?

The share price of Rail Vikas Nigam Limited (RVNL) jumped over 7 percent intraday on February 19, 2024, following Rs 65,000-crore order book and offshore growth plans.

The company reported that it had touched an order book of Rs 65,000 crore. The firm stated in an investor call that it is actively seeking projects in off-shore markets. It includes Central Asia, the UAE, and Western Asia.

“We have got an order book of around Rs 65,000 crore, which roughly constitutes 50 percent from the nomination, that is the typical railway projects and 50 percent from the market. In time to come, we should maintain an order book of around Rs 75,000 crore,” the management officials said.

In the last year, the multi-bagger stock has experienced a rally of over 300 percent. It significantly outperformed the benchmark Nifty 50, which has seen a 23 percent increase during the same period.

Also read: Gensol Engineering, IPCA Labs Top 2 Stocks That Can Fetch Up to 17% Return

The Vande Bharat trains constitute approximately Rs 9,000 crore of the total order book, while several Metro projects make up Rs 7,000 crore. The company has also secured projects in electrification and transmission lines, among others. RVNL is diversifying into various segments and actively pursuing projects in foreign countries.

Regarding its growth plans in offshore markets, the RVNL management mentioned that the company recently participated in a Public-Private Partnership (PPP) model project in Botswana and has been shortlisted. Additionally, offices are being established in some other neighboring foreign countries.

“In the UAE, we have been actively looking at the markets in Central Asia and the UAE and Western Asia. So, we should be able to manage a profit which will commensurate with our performances in other fields,” it said.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.