RNVL Shares Surge Over 9% on Friday: Here's What's Driving the Rally

Rail Vikas Nigam Ltd. (RVNL) stock experienced a double-digit share of nearly 10% on the National Stock Exchange after announcing a major contract win. The PSU under the Ministry of Railways secured a major contract worth Rs 115.7 crore in the Nagpur region.

At 11:20 am, RVNL shares were trading at Rs 414.25 price level, witnessing an uptick of more than 10% on the NSE. Despite a fall in benchmark indices, the PSU stocks rallied on the exchanges.

In the last 5 trading sessions, the shares of the company have increased by over 19.64% on the bourses.

Rail Vikas Nigam Limited has received a letter of acceptance from Central Railway for work to upgrade the electric traction system in the Itarsi–Amla section (Nagpur Division).

"It is hereby informed that Rail Vikas Nigam Limited has received LOA from Central Railway for OHE Modification Work for Up-gradation of existing 1x25 KV Electric Traction System to 2x25 KV at Feeding System in Itarsi - Amla Section in Nagpur Division of Central Railway to meet 3000 MT Loading Target," the public sector enterprise said in a recent exchange filing. The set time period for the completion of the contract is 24 months.

RVNL Share Price

While the share price trajectory has remained relatively robust in the past month, the stock has struggled to stay in the green territory in the last 6 months. Even so far this year, RVNL shares have experienced a single-digit plummet of over 3.1%.

In the last 1 year, RVNL stock has surged more than 47% on the NSE. However, the stock is still down by more than 36% from its 52-week high of Rs 647.  

The PSU stock was once a star stock of D-street, delivering multi-bagger returns in the past few years. In the last 5 years, the shares have soared over 2,262% on both NSE and BSE.