Railway PSU stocks zoom over 10% on large order updates

25 Nov 2024 , 11:57 AM

Railway PSUs RITES Ltd. and Rail Vikas Nigam Ltd. (RVNL) saw their shares rise by up to 11% on Monday, November 25, after both firms provided updates on key orders won.

Last Friday, RITES told the exchanges that it had obtained a large railway electrification order for the Limding-Badarpur line, as well as improved order estimates from Northeast Frontier Railway.

The order would now cost ₹531.7 Crore, excluding GST, a considerable increase from the prior ₹288.44 Crore. The pricing includes the Project Management Consultancy (PMC) cost. 

Rail Vikas Nigam also announced that it received a Letter of Acceptance (LoA) from the Eastern Railway for earthwork in cutting and filling, blanketing, construction of minor bridges, major bridges, retaining wall, ROB, side drain, RUB, level crossing, catch water drain, P.way work, and other ancillary works between Kalipahari and Pradhankhunta.

RVNL stated in an exchange statement that the said order is worth over ₹837 Crore. Also, it must be implemented over the next 16 months.

This order was issued to RVNL in collaboration with SCPL, of which RVNL is the dominant stakeholder (74% interest).

At around 10.49 AM, RVNL was trading 6.73% higher at ₹448.50, against the previous close of ₹420.20 on NSE. The counter rose as much as 10%.

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